Twenty-First Century Fox 2011 Annual Report Download - page 80

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Notes to the Consolidated Financial Statements (continued)
NOTE 18. Income Taxes
Income (loss) from continuing operations before income tax expense was attributable to the following jurisdictions:
2011 2010 2009
For the years ended June 30, (in millions)
United States (including exports) $3,259 $2,889 $(5,501)
Foreign 918 434 (38)
Income (loss) from continuing operations before income tax expense $4,177 $3,323 $(5,539)
Significant components of the Company’s provision (benefit) for income taxes from continuing operations were as follows:
2011 2010 2009
For the years ended June 30, (in millions)
Current:
United States
Federal $ 823 $248 $ 675
State & local 77 114 127
Foreign 242 189 303
Total current 1,142 551 1,105
Deferred (113) 128 (3,334)
Total provision (benefit) for income taxes(a) $1,029 $679 $(2,229)
(a) The total tax provision for the year ended June 30, 2011 included $1,029 million from continuing operations and $(61) from discontinued operations.
The reconciliation of income tax attributable to continuing operations computed at the statutory rate to income tax expense was:
For the years ended June 30, 2011 2010 2009
U.S. federal income tax rate/(benefit) 35% 35% (35)%
Prior year tax credit recognition(a) — (9) —
Sale of interest in subsidiaries (3) 4 (7)
State and local taxes 211
Effect of foreign taxes (2) (1) 1
Resolution of tax matters (3) (1) (19)
Non-deductible goodwill on asset impairment(b) 1 2 26
Recognition of tax assets — (8) (3)
Permanent differences and Other (5) (3) (4)
Effective tax rate 25% 20% (40)%
(a) During the fiscal year ended June 30, 2010, the Company made an election to credit certain prior year’s taxes instead of claiming deductions. As a result, a benefit of $312 million was
recognized in fiscal 2010.
(b) See Note 9 – Goodwill and Other Intangible Assets.
78 News Corporation