ADP 2011 Annual Report Download - page 65

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 $35.2 million and $35.4 million of current deferred tax assets included in other current assets on the Consolidated Balance
Sheets at June 30, 2011 and 2010, respectively. There are $62.3 million and $84.5 million of long
- term deferred tax assets included in
other assets on the Consolidated Balance Sheets at June 30, 2011 and 2010, respectively. There are $97.9 million, and $48.1 million of
current deferred tax liabilities included in accrued expenses and other current liabilities on the Consolidated Balance Sheets at June
30, 2011 and 2010, respectively.
Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of
approximately $1,016.7 million as of June 30, 2011, as the Company considers such earnings to be permanently reinvested outside of
the United States. The additional U.S. income tax that would arise on repatriation of the remaining undistributed earnings could be
offset, in part, by foreign tax credits on such repatriation. However, it is impractical to estimate the amount of net income tax that
might be payable.
65
Years ended June 30,
2011
%
2010
%
2009
%
Provision for taxes at U.S.
statutory rate
$
676.5
35.0
$
652.1
35.0
$
665.0
35.0
Increase (decrease) in provision from:
State taxes, net of federal tax
29.2
1.5
34.5
1.9
37.8
2.0
Tax on repatriated earnings and foreign income
30.3
1.6
15.1
0.8
43.0
2.2
Utilization of foreign tax credits
(26.0
)
(1.3
)
(14.9
)
(0.8
)
(46.6
)
(2.4
)
Tax settlements
-
-
-
-
(120.0
)
(6.3
)
Resolution of tax matters
-
-
(12.2
)
(0.7
)
(2.8
)
(0.1
)
Section 199 - Qualified Production Activities
(18.2
)
(1.0
)
(11.8
)
(0.6
)
(6.9
)
(0.4
)
Other
(13.3
)
(0.7
)
(6.9
)
(0.4
)
5.5
0.3
$
678.5
35.1
$
655.9
35.2
$
575.0
30.3
Years ended June 30,
2011
2010
Deferred tax assets:
Accrued expenses not currently deductible
$
205.8
$
227.4
Stock - based compensation expense
95.7
100.9
Net operating losses
111.4
80.8
Other
10.8
3.0
423.7
412.1
Less: valuation allowances
(62.7
)
(61.9
)
Deferred tax assets, net
$
361.0
$
350.2
Deferred tax liabilities:
Prepaid retirement benefits
$
97.7
$
19.4
Deferred revenue
62.3
80.8
Fixed and intangible assets
298.9
176.3
Prepaid expenses
61.3
46.9
Unrealized investment gains, net
194.3
249.0
Tax on unrepatriated earnings
20.0
12.3
Other
0.4
-
Deferred tax liabilities
$
734.9
$
584.7
Net deferred tax liabilities
$
373.9
$
234.5