Earthlink 2009 Annual Report Download - page 101
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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
13. Income Taxes
The current and deferred income tax (provision) benefit from continuing operations for the years ended December 31, 2007, 2008 and 2009
were as follows:
During the year ended December 31, 2009, the Company released $199.0 million of its valuation allowance related to its deferred tax assets.
Of the valuation allowance release, $198.8 million was recorded as an income tax benefit in the Consolidated Statement of Operations and
$0.2 million related to temporary differences and was recorded to accumulated other comprehensive income (loss) on the Consolidated Balance
Sheet. These deferred tax assets relate primarily to net operating loss carryforwards ("NOLs") which the Company determined it will more likely
than not be able to utilize due to the generation of sufficient taxable income in the future.
During the year ended December 31, 2008, the Company released $65.6 million of its valuation allowance related to its deferred tax assets.
These deferred tax assets relate primarily to NOLs which the Company determined it will more likely than not be able to utilize due to the
generation of sufficient taxable income in the future. Of the total valuation allowance release, $56.1 million was recorded as an income tax
benefit in the Consolidated Statement of Operations. The remaining $9.5 million related to acquired net operating losses and reduced goodwill
on the Consolidated Balance Sheet.
97
Year Ended December 31,
2007
2008
2009
(in thousands)
Current
Federal
$
—
$
(
20,618
)
$
(4,103
)
State
(220
)
(4,860
)
(5,184
)
Total current
(220
)
(25,478
)
(9,287
)
Deferred
Federal
1,244
52,475
124,357
State
203
5,187
11,015
Total deferred
1,447
57,662
135,372
Income tax benefit
$
1,227
$
32,184
$
126,085