Circuit City 2010 Annual Report Download - page 51

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Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations.
A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory
corporate rate is as follows (in thousands):
The deferred tax assets and liabilities are comprised of the following (in thousands):
The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of
approximately $48.5 million as of December 31, 2010, since these earnings are considered indefinitely reinvested. The Company has
foreign net operating loss carryforwards which expire through 2025. The Company records these benefits as assets to the extent that
utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided
valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized.
Year Ended December 31,
2010
2009
2008
Income tax at Federal statutory rate
$
23,112
$
25,580
$
29,311
State and local income taxes and changes in valuation allowances, net of federal
tax benefit
1,381
2,402
3,036
Foreign taxes at rates different from the U.S. rate
(1,407
)
(991
)
(940
)
Changes in valuation allowances
(87
)
965
(120
)
Decrease in tax reserves
-
(1,195
)
—
Refunds
-
prior years
-
—
(
872
)
Non
-
deductible items
680
—
—
Adjustment for prior year taxes
(30
)
107
253
Other items, net
(167
)
32
232
$
23,482
$
26,900
$
30,900
December 31,
2010
2009
Assets:
Current:
Accrued expenses and other liabilities
$
12,720
$
7,612
Inventory
1,902
1,838
Valuation allowances
(1,605
)
(1,507
)
Total current assets
$
13,017
$
7,943
Non
-
current:
Net operating loss and credit carryforwards
$
22,842
$
19,058
Accelerated depreciation
4,728
10,516
Intangible and other assets
_
2,264
Other
8,594
6,910
Valuation allowances
(27,671
)
(28,326
)
Total non-current assets
$
8,493
$
10,422
Liabilities :
Current :
Deductible assets
$
1,350
$
1,298
Other
4,534
19
Total current liabilities
$
5,884
$
1,317
Non
-
current:
Accelerated depreciation
$
6,107
$
1,858
Other
73
—
Total non
-
current liabilities
$
6,180
$
1,858
46