First Data 2010 Annual Report Download - page 118

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Table of Contents
FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2009 by Quarter: First Second Third Fourth
Revenues $ 2,076.2 $ 2,208.6 $ 2,443.2 $ 2,585.8
Expenses 2,045.8 2,090.4 2,328.4 2,694.4
Interest income 3.3 3.1 3.2 2.1
Interest expense (448.2) (449.6) (447.5) (451.1)
Other income (expense) 23.3 (3.6) (84.5) 3.5
Loss before income taxes and equity earnings in affiliates (391.2) (331.9) (414.0) (554.1)
Income tax benefit (144.8) (112.8) (132.5) (188.7)
Equity earnings in affiliates 18.5 25.5 26.8 27.0
Net loss (227.9) (193.6) (254.7) (338.4)
Less: Net income attributable to noncontrolling interests 3.4 2.3 35.9 30.2
Net loss attributable to First Data Corporation $ (231.3) $ (195.9) $ (290.6) $ (368.6)
Note 17: Income Taxes
Year ended December 31,
(in millions) 2010 2009 2008
Components of pretax (loss) income:
Domestic $ (1,289.1) $ (1,799.2) $ (3,983.1)
Foreign 118.4 205.8 (324.1)
$ (1,170.7) $ (1,593.4) $ (4,307.2)
(Benefit) provision for income taxes:
Federal $ (313.9) $ (579.6) $ (667.8)
State and local (39.3) (38.8) (46.6)
Foreign 29.4 39.6 15.2
$ (323.8) $ (578.8) $ (699.2)
Effective Income Tax Rate 27.7% 36.3% 16.2%
The Company's effective tax rates differ from statutory rates as follows:
Year ended December 31,
2010 2009 2008
Federal statutory rate 35.0% 35.0% 35.0%
State income taxes, net of federal income tax benefit 2.0 2.1 1.1
Nontaxable income from noncontrolling interests 5.2 1.6 1.3
Impact of foreign operations (a) 1.5 2.5 1.2
Valuation allowances (15.1) (1.7) (0.1)
Liability for unrecognized tax benefits 2.1 (2.5) (0.7)
Goodwill impairment 0.0 (0.3) (24.4)
Other (3.0) (0.4) 2.8
Effective tax rate 27.7% 36.3% 16.2%
(a) The impact of foreign operations includes the effects of tax earnings and profits adjustments, foreign losses and differences between foreign tax expense
and foreign taxes eligible for the U.S. foreign tax credit.
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