American Home Shield 2008 Annual Report Download - page 96

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 6. Income Taxes (Continued)
Predecessor period from
Jul. 25, 2007 to Dec. 31, 2007
Current Deferred Total
U.S. federal $17,111 $(67,831)$(50,720)
State and local 493 (1,955) (1,462)
$17,604 $(69,786)$(52,182)
Predecessor period
From Jan. 1, 2007 to Jul. 24, 2007
Current Deferred Total
U.S. federal $ 19,687 $ 28,205 $ 47,892
State and local 1,562 2,238 3,800
$ 21,249 $ 30,443 $ 51,692
Predecessor 2006
Current Deferred Total
U.S. federal $70,244 $20,825 $91,069
State and local 3,190 946 4,136
$73,434 $21,771 $95,205
Deferred income tax expense results from timing differences in the recognition of income and expense for income tax and financial reporting purposes.
Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
and income tax purposes. The deferred tax asset primarily reflects the impact of future tax deductions related to the Company's accruals and certain net
operating loss carryforwards. Management believes that, based upon its history of profitable operations, it is more-likely-than-not that its deferred tax assets
will be realized, primarily from the generation of future taxable income. The deferred tax liability is primarily attributable to the basis differences related to
intangible assets.
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