Enom 2010 Annual Report Download - page 77
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Table of Contents
gains and losses on settlements of international receivables and an approximately $0.2 million decrease in the impact of changes in the fair value
associated with our preferred warrant outstanding in 2008 and 2009, offset by one time write-down of a certain investments in 2008 of
$0.3 million.
Income Tax (Benefit) Provision
2010 compared to 2009. During the year ended December 31, 2010, we recorded an income tax provision of $3.9 million compared to
$2.8 million during the same period in 2009, representing a $1.1 million or 41% year-over-year increase despite no significant changes in our
year-over-year operating losses before income taxes. The $1.1 million increase was largely due to a change in our valuation allowance, which
increased by $3.0 million from $11.4 million during the year ended December 31, 2009, to $14.4 million in the same period in 2010, primarily as
a result of increases in net deferred tax assets, which includes the impact of tax amortization of deductible goodwill, the ultimate realization of
which is uncertain and thus not available to assure the realization of deferred tax assets. In addition, the increase was also due to corresponding
movements in state deferred tax balances as a result of changes in state tax laws and the Company's state tax apportionment rates during 2010.
2009 compared to 2008. During the year ended December 31, 2009, we recorded an income tax provision of $2.8 million compared to an
income tax benefit of $4.6 million during the same period in 2008, representing a $7.4 million year-over-year increase despite no significant
changes in our year over year operating losses before income taxes. The $7.4 million increase was largely due to a change in our valuation
allowance, which increased by $8.7 million from $2.7 million during the year ended December 31, 2008, to $11.4 million in the same period in
2009, primarily as a result of increases in net deferred tax assets, which includes the impact of tax amortization of deductible goodwill, the
ultimate realization of which is uncertain and thus not available to assure the realization of deferred tax assets. The increase in the corresponding
valuation allowance was partially offset by movements in state deferred tax balances as a result of changes in state tax laws and the Company's
state tax footprint from acquisitions impacting state apportionment rates.
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