eTrade 2005 Annual Report Download - page 178

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At December31, 2005, the Company had foreign country net operating loss carry-forwards of approximately $83.0 million for
which a deferred tax asset of approximately $25 million was established. The foreign net operating losses represent the foreign
tax loss carry-forwards in numerous foreign countries, some of which are subject to expiration from 2006-2008. In most of these
foreign countries, the Company has historical tax losses, and the Company continues to project to incur operating losses in most
of these countries. Accordingly, the Company has provided a valuation allowance of $23.5 million against such deferred tax
asset at December31, 2005.
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During 2005, the Company reversed the valuation allowance of approximately $2.0 million related to its Danish subsidiary’s
operations due to positive evidence, principally sustained profitability, that led management to conclude that it is now more
likely than not that realization of its net operating losses and other tax attributes will be recognized.
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At December31, 2005, the Company had gross state net operating loss carry-forwards of $171 million that expire between 2012
and 2024, most of which are subject to reduction for apportionment when utilized. A deferred tax asset of approximately $13
million has been established related to these state net
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2006. EDGAR Online, Inc.