Avis 2010 Annual Report Download - page 84

Table of Contents
Pretax income (loss) for domestic and foreign operations consists of the following:
Current and non-current deferred income tax assets and liabilities are comprised of the following:
F
-
20
Year Ended December 31,
2010
2009
2008
Domestic
$
(17
)
$
(146
)
$
(1,404
)
Foreign
89
69
61
Pretax income (loss)
$
72
$
(77
)
$
(1,343
)
As of December 31,
2010
2009
Current deferred income tax assets:
Accrued liabilities and deferred income
$
179
$
165
Provision for doubtful accounts
5
4
Acquisition and integration
-
related liabilities
9
-
Unrealized hedge loss
1
-
Convertible note hedge
8
8
Valuation allowance
(35
)
(25
)
Current deferred income tax assets
167
152
Current deferred income tax liabilities:
Prepaid expenses
37
38
Unrealized hedge gain
-
7
Current deferred income tax liabilities
37
45
Current net deferred income tax asset
$
130
$
107
Non
-
current deferred income tax assets:
Net tax loss carryforwards
$
373
$
351
Accrued liabilities and deferred income
131
130
Depreciation and amortization
99
117
Tax credits
75
50
Convertible note hedge
21
28
Acquisition and integration
-
related liabilities
21
23
Unrealized hedge loss
1
15
Other
23
24
Valuation allowance
(157
)
(141
)
Non
-
current deferred income tax assets
$
587
$
597
The valuation allowance of $192 million at December 31, 2010 relates to tax loss carryforwards, foreign tax credits and certain state
deferred tax assets of $122 million, $53 million and $17 million, respectively. The valuation allowance will be reduced when and if the
Company determines it is more likely than not that the related deferred income tax assets will be realized.
(a)
(a)
(a
)