Zynga 2011 Annual Report Download - page 80

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Table of Contents
Net operating loss and tax credit carryforwards as of December 31, 2011 are as follows (in thousands):
Pursuant to authoritative guidance, the benefit of stock options will only be recorded to stockholders’ equity when cash taxes payable are
reduced. As of December 31, 2011, the portion of net operating loss carryforwards related to stock options is approximately $83.7 million, the
benefit of which will be credited to additional paid-in capital when realized. The federal and state net operating loss carryforwards are subject to
various annual limitations under Section 382 of the Internal Revenue Code.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
As of December 31, 2011, approximately $8.2 million represents the amount of unrecognized tax benefits that would, if recognized, impact our
effective income tax rate.
We classify uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year or otherwise directly
related to an existing deferred tax asset, in which case the uncertain tax position is recorded net of the asset on the balance sheet. These non-
current income tax liabilities are classified in other non-
current liabilities on the consolidated balance sheets. We do not expect any unrecognized
tax benefits to be recognized within the next 12 months. We recognize interest and penalties in income tax expense. As of December 31, 2011
and December 31, 2010, the total balance of accrued interest and penalties related to uncertain tax positions was zero. We file income tax returns
in the United States, including various state and local jurisdictions. Our subsidiaries file tax returns in various foreign jurisdictions, including
Canada, China, Germany, Japan, India, UK and Ireland. We are subject to examination by U.S. federal, state or foreign tax authorities for all
years since our inception in 2007.
8. Other Current Liabilities
Other current liabilities consists of the following for the periods shown below (in thousands):
76
Amount
Expiration
years
Net operating losses, federal
$
183,610
2028
-
2031
Net operating losses, state
$
70,821
2021
-
2031
Tax credit, federal
$
35,520
2020
-
2021
Tax credits, state
$
16,425
2017
-
indefinite
Net operating losses, foreign
$
1,561
2017
-
2018
Tax credits, foreign
$
121
2017
-
2018
December 31, 2009
1,528
Additions based on tax positions related to 2010
13,782
Reductions for tax positions of prior years
(127
)
December 31, 2010
15,183
Additions based on tax positions related to 2011
30,841
Additions for tax positions of prior years
2,318
Reductions for tax positions of prior years
(9
)
December 31, 2011
48,334
Year Ended December 31,
2011
2010
Customer deposits
50,140
$
5,619
Other current liabilities
117,131
73,130
Total other current liabilities
167,271
$
78,749