ServiceMagic 2012 Annual Report Download - page 69

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 4—INCOME TAXES
U.S. and foreign earnings from continuing operations before income taxes are as follows:
The components of the provision (benefit) for income taxes attributable to continuing operations are as follows:
The current income tax payable was reduced by $57.1 million , $22.2 million and $10.0 million for the years ended December 31, 2012 ,
2011 and 2010 , respectively, for excess tax deductions attributable to stock-based compensation including settlements of vested stock-based
awards denominated in subsidiaries' equity. The related income tax benefits are recorded as increases to additional paid-in capital.
The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax
liabilities are presented below. The valuation allowance is related to items for which it is more likely than not that the tax benefit will not be
realized.
Years Ended December 31,
2012
2011 2010
(In thousands)
Other (expense) income, net:
Interest income
$
3,462
$
5,205
$
6,517
Interest expense
(6,149
)
(5,430
)
(5,404
)
Non-income tax refunds related to Match Europe, which was sold in 2009
—
4,630
—
Foreign currency exchange (losses) gains, net
(1,050
)
3,660
314
Gains on sales of investments
3,326
1,974
3,989
Impairment of long-term investments
(8,685
)
— (
7,844
)
Other
(65
)
21
995
Other (expense) income, net
$
(9,161
)
$
10,060
$
(1,433
)
Years Ended December 31,
2012
2011 2010
(In thousands)
U.S.
$
214,675
$
142,623
$
20,603
Foreign
74,387
28,899
2,083
Total
$
289,062
$
171,522
$
22,686
Years Ended December 31,
2012
2011 2010
(In thousands)
Current income tax provision (benefit):
Federal
$
56,439
$
49,450
$
27,271
State
9,204
(26,510
)
7,785
Foreign
16,496
8,496
3,097
Current income tax provision
82,139
31,436
38,153
Deferred income tax provision (benefit):
Federal
40,414
(23,293
)
(7,031
)
State
1,978
639
1,646
Foreign
(5,316
)
(12,829
)
(689
)
Deferred income tax provision (benefit)
37,076
(35,483
)
(6,074
)
Income tax provision (benefit)
$
119,215
$
(4,047
)
$
32,079