ADP 2010 Annual Report Download - page 79

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A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows:
The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
There are $35.4 million and $157.4 million of current deferred tax assets included in other current assets on the Consolidated Balance
Sheets at June 30, 2010 and 2009, respectively. There are $84.5 million and $44.1 million of long
-
term deferred tax assets included in
Years ended June 30,
2010
%
2009
%
2008
%
Provision for taxes at U.S.
statutory rate
$
652.1
35.0
$
665.0
35.0
$
631.2
35.0
Increase (decrease) in provision from:
State taxes, net of federal tax
34.5
1.9
37.8
2.0
28.8
1.6
Non
-
deductible stock
-
based
compensation expense
2.6
0.1
5.5
0.3
5.5
0.3
Tax on repatriated earnings and foreign income
15.1
0.8
43.0
2.2
-
-
Utilization of foreign tax credits
(14.9
)
(0.8
)
(46.6
)
(2.4
)
-
-
Tax settlements
-
-
(120.0
)
(6.3
)
(12.4
)
(0.7
)
Resolution of tax matters
(12.2
)
(0.7
)
(2.8
)
(0.1
)
(3.4
)
(0.2
)
Section 199
-
Qualified Production Activities
(11.8
)
(0.6
)
(6.9
)
(0.4
)
(5.6
)
(0.3
)
Other
(9.5
)
(0.5
)
-
-
3.6
0.2
$
655.9
35.2
$
575.0
30.3
$
647.7
35.9
Years ended June 30,
2010
2009
Deferred tax assets:
Accrued expenses not currently deductible
$
227.4
$
270.6
Stock
-
based compensation expense
100.9
123.1
Accrued retirement benefits
-
41.7
Net operating losses
80.8
53.0
Other
3.0
6.1
412.1
494.5
Less: valuation allowances
(61.9
)
(51.7
)
Deferred tax assets, net
$
350.2
$
442.8
Deferred tax liabilities:
Prepaid retirement benefits
$
19.4
$
-
Deferred revenue
80.8
105.3
Fixed and intangible assets
176.3
185.7
Prepaid expenses
46.9
40.2
Unrealized investment gains, net
249.0
154.6
Tax on unrepatriated earnings
12.3
30.4
Other
-
4.1
Deferred tax liabilities
$
584.7
$
520.3
Net deferred tax liabilities
$
234.5
$
77.5