Cash America 2010 Annual Report Download - page 120
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
91
The components of the provision for income taxes and the income to which it relates for the years ended
December 31, 2010, 2009 and 2008 are shown below (in thousands):
Year Ended December 31,
2010 2009 2008
Income before income taxes:
Domestic $ 182,292 $146,667 $132,294
Foreign 2,221 8,049 509
Income before income taxes 184,513 154,716 132,803
Current provision:
Federal $ 53,966 $40,348 $ 37,709
Foreign 106 1,414 129
State and local 4,106 4,005 3,787
Total current provision 58,178 45,767 41,625
Deferred provision (benefit):
Federal $ 9,949 $10,239 $ 8,972
Foreign 1,053 506 34
State and local 89 268 986
Total deferred provision 11,091 11,013 9,992
Total provision $ 69,269 $56,780 $51,617
The effective tax rate on income differs from the federal statutory rate of 35% for the following reasons
(dollars in thousands):
Year Ended December 31,
2010 2009 2008
Tax provision computed at the federal statutory income tax rate $ 64,579 $ 54,151 $ 46,481
State and local income taxes, net of federal tax benefits 2,727 2,778 3,102
N
ondeductible lobbying 1,039 614 1,892
Foreign tax rate difference 442 (761) -
Other 482 (2) 142
Total provision $ 69,269 $ 56,780 $ 51,617
Effective tax rate 37.5 % 36.7 %38.9 %
As of December 31, 2008, the Company acquired foreign net operating losses of $18.1 million. The amount
was reduced to $17.9 million by an unrecognized tax benefit. The balance as of December 31, 2010 is $18.5 million,
with the increase attributable to a change in foreign currency exchange rates. Mexico allows a ten year carryforward
period and the Company expects to fully utilize the net operating losses prior to the expiration dates in 2015, 2017, and
2018. Domestic income taxes have not been provided on the Company’s share of undistributed earnings of foreign
subsidiaries because it is the Company’s intent to reinvest these earnings in the business activities of the foreign
subsidiaries for the foreseeable future. The Company estimates that it would be subject to U.S. income taxes of
approximately $1.0 million upon distribution of the Company’s share of earnings of its foreign subsidiaries accumulated as
of December 31, 2010.