Rosetta Stone 2011 Annual Report Download - page 116

Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. INCOME TAXES (Continued)
credit carryforwards which if unutilized, would expire between 2031 and 2032, foreign tax credit carryforwards of $1.2 million which if unutilized, would
expire in 2022, and a minimum tax credit carryforward of $0.1 million which has an unlimited carryforward period.
If future events change the outcome of the Company's projected return to profitability, a valuation allowance may be required to reduce the deferred tax
assets. However, currently no valuation allowance has been established for the Company's deferred tax assets as the Company believes such assets will more
likely than not be realized. The company will continue to assess the need for a valuation allowance in the future.
The components of income (loss) before income taxes are as follows (in thousands):
Year Ended December 31,
2011 2010 2009
United States $ (33,199)$ 1,683 $ 19,030
Foreign 5,231 11,190 1,417
Income (loss) before income taxes $ (27,968)$ 12,873 $ 20,447
The provision for taxes on income consists of the following (in thousands):
Federal $ (8,758)$ 2,739 $ 7,555
State (582) 1,066 1,864
Foreign 3,458 1,738 140
Total current $ (5,882)$ 5,543 $ 9,559
Deferred:
Federal $ (682)$ (3,099)$ (1,917)
State (870) (456) (430)
Foreign (546) (2,399) (128)
Total deferred (2,098) (5,954) (2,475)
Provision (benefit) for income taxes $ (7,980)$ (411)$ 7,084
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