Redbox 2011 Annual Report Download - page 82

Deferred Tax Assets Relating to Income Tax Loss Carryforwards
Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as
below:
Dollars in thousands December 31, 2011
Federal State
Net operating loss carryforwards ......................... $ 217,672 $ 178,098
Deferred tax assets related to net operating loss
carryforwards ...................................... $ 76,185 $ 5,934
Years that net operating loss carryforwards will expire
between .......................................... 2024 and 2030 2016 and 2030
Based upon our projections for future taxable income over the periods in which the deferred tax assets are
deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences,
net of the existing valuation allowances at December 31, 2011.
U.S. Federal Tax Credits and Expiration Periods
The following is the information pertaining to our U.S. federal tax credits as well as the expiration periods:
Dollars in thousands December 31, 2011
Amount Expiration
U.S Federal tax credits:
Foreign tax credits ......................................... $2,092 2014 to 2021
Research and development tax credits .......................... 3,355 2012 to 2026
Other general business tax credits ............................. 197 2027
Alternative minimum tax credits .............................. 728 Donotexpire
Total U.S. Federal tax credits ............................. $6,372
We did not provide for U.S. income taxes on undistributed earnings of foreign operations because they were
considered permanently invested outside of the U.S. Upon repatriation, some of these earnings would generate
foreign tax credits, which may reduce the U.S. tax liability associated with any future foreign dividend. At
December 31, 2011, the cumulative amount of earnings upon which U.S. income taxes have not been provided
was approximately $12.6 million.
Income Tax Benefit from Stock Option Exercises
The income tax benefit realized from stock option exercises in excess of the amounts recognized in the
Consolidated Statements of Net Income were as follows:
Dollars in thousands Year Ended December 31,
2011 2010 2009
Excess income tax benefit from stock options exercised .............. $2,548 $6,770 $—
NOTE 12: EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed by dividing the net income for the period by the weighted average
number of common shares outstanding during the period. Diluted EPS is computed by dividing the net income
for the period by the weighted average number of common and dilutive potential common shares outstanding
during the period.
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