First Data 2011 Annual Report Download - page 120

The following table presents the approximate amounts of federal, state and foreign net operating loss carryforwards and foreign
tax credit, general business credit and minimum tax credit carryforwards:
As of December 31,
(in millions) 2011
Federal net operating loss carryforwards (a) $ 1,936
State net operating loss carryforwards (b) 2,639
Foreign net operating loss carryforwards (c) 375
Foreign tax credit carryforwards (d) 129
General business credit carryforwards (e) 26
Minimum tax credit carryforwards (f) 14
(a) If not utilized, these carryforwards will expire in years 2015 through 2031.
(b) If not utilized, these carryforwards will expire in years 2012 through 2031.
(c) Foreign net operating loss carryforwards of $86 million, if not utilized, will expire in years 2012 through 2025. The remaining
foreign net operating loss carryforwards of $289 million have an indefinite life.
(d) If not utilized, these carryforwards will expire in years 2017 through 2021.
(e) If not utilized, these carryforwards will expire in years 2025 through 2029.
(f) These carryforwards have an indefinite life.
A reconciliation of the unrecognized tax benefits for the year ended December 31, 2009, 2010 and 2011 is as follows:
(in millions) Unrecognized Tax Benefits
Balance as of January 1, 2009 $ 371.5
Increases for tax positions of prior years 21.6
Decreases for tax positions of prior years (5.2)
Increases for tax positions related to the current period 35.4
Decreases for cash settlements with taxing authorities (2.9)
Decreases due to the lapse of the applicable statute of limitations (5.4)
Balance as of December 31, 2009 $ 415.0
Increases for tax positions of prior years 0.5
Decreases for tax positions of prior years (45.4)
Increases for tax positions related to the current period 1.9
Decreases for cash settlements with taxing authorities (1.4)
Decreases due to the lapse of the applicable statute of limitations (2.0)
Balance as of December 31, 2010 $ 368.6
Increases for tax positions of prior years 1.3
Decreases for tax positions of prior years (28.5)
Increases for tax positions related to the current period 1.7
Decreases for cash settlements with taxing authorities (1.0)
Decreases due to the lapse of the applicable statute of limitations (7.4)
Balance as of December 31, 2011 $ 334.7
Most of the unrecognized tax benefits are included in the "Other long-term liabilities" line of the Consolidated Balance Sheets,
net of the federal benefit on state income taxes (approximately $23 million at December 31, 2011). However, those unrecognized tax
benefits that affect the federal consolidated tax years ending December 31, 2008 through December 31, 2011 are included in the
"Long-term deferred tax liabilities" line of the Consolidated Balance Sheets," as these items reduce the Company's net operating loss
and credit carryforwards from those periods. The unrecognized tax benefits at December 31, 2011, 2010, and 2009 included
approximately $172 million, $195 million, and $217 million, respectively, of tax positions that, if recognized, would affect the
effective tax rate.
During the year ended December 31, 2011, the Company's liability for unrecognized tax benefits was reduced by $25 million
after negotiating settlements with the Internal Revenue Service ("IRS") regarding specific contested issues in the 2003 through 2006
federal tax years. The reduction in liabilities was recorded through a decrease to tax expense.
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