First Data 2011 Annual Report Download - page 118

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Note 17: Income Taxes
Year ended December 31,
(in millions) 2011 2010 2009
Components of pretax (loss) income:
Domestic $ (898.9) $ (1,289.1) $ (1,799.2)
Foreign 292.7 118.4 205.8
$ (606.2) $ (1,170.7) $ (1,593.4)
(Benefit) provision for income taxes:
Federal $ (282.6) $ (313.9) $ (579.6)
State and local (27.9) (39.3) (38.8)
Foreign 40.4 29.4 39.6
$ (270.1) $ (323.8) $ (578.8)
Effective Income Tax Rate 44.6% 27.7% 36.3%
The Company's effective tax rates differ from statutory rates as follows:
Year ended December 31,
2011 2010 2009
Federal statutory rate 35.0% 35.0% 35.0%
State income taxes, net of federal income tax benefit 1.5 2.0 2.1
Nontaxable income from noncontrolling interests 10.2 5.2 1.6
Impact of foreign operations (a) 3.9 1.5 2.5
Valuation allowances (12.7) (15.1) (1.7)
Liability for unrecognized tax benefits 3.3 2.1 (2.5)
Impact of contribution to alliance (b) (2.2) 0.0 0.0
Prior year adjustments 2.5 (1.2) 0.0
Other 3.1 (1.8)(0.7)
Effective tax rate 44.6%27.7%36.3%
(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.
(b) The impact of contribution to alliance represents the tax effects resulting from the gain on the contribution of the company's
transportation business in exchange for a 30% interest in an alliance.
The Company's income tax (benefits) provisions consisted of the following components:
Year ended December 31,
(in millions) 2011 2010 2009
Current
Federal $ (54.0) $ (27.7) $ 39.8
State and local 25.8 18.3 13.1
Foreign 61.8 57.7 67.7
33.6 48.3 120.6
Deferred
Federal (228.6) (286.2) (619.4)
State and local (53.7) (57.6) (51.9)
Foreign (21.4)(28.3)(28.1)
(303.7)(372.1)(699.4)
$ (270.1)$ (323.8)$ (578.8)
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