Memorex 2011 Annual Report Download - page 79
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 10 — Income Taxes
The components of loss from continuing operations before income taxes were as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
U.S. ......................................................... $(67.0) $(114.3) $(116.0)
International ................................................... 24.1 37.9 39.3
Total ...................................................... $(42.9) $ (76.4) $ (76.7)
The components of the income tax provision (benefit) from continuing operations were as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Current
Federal ........................................................ $1.5 $12.1 $(27.0)
State .......................................................... — 3.8 (6.4)
International .................................................... 5.5 9.0 2.7
Deferred
Federal ........................................................ — 44.7 (6.6)
State .......................................................... — 8.6 (0.9)
International .................................................... (3.2) 3.7 5.5
Total ............................................................ $3.8 $81.9 $(32.7)
The income tax provision from continuing operations differs from the amount computed by applying the statutory United
States income tax rate (35 percent) because of the following items:
Years Ended December 31,
2011 2010 2009
(In millions)
Tax at statutory U.S. tax rate ........................................ $(15.0) $ (26.8) $(26.9)
State income taxes, net of federal benefit ............................. (2.2) (3.7) (5.6)
Net effect of international operations ................................ (1.3) (2.8) (7.2)
Valuation allowances ............................................ 17.6 105.2 1.4
U.S. tax on foreign earnings ....................................... 4.8 5.1 0.6
Uncertain tax positions ........................................... 0.2 1.3 3.5
Other ........................................................ (0.3) 3.6 1.5
Income tax provision (benefit) ........................................ $ 3.8 $ 81.9 $(32.7)
In comparing our 2011 tax provision of $3.8 million to our 2010 tax provision of $81.9, the primary change is due to the
U.S. not receiving a tax benefit from the 2011 net operating loss, and the establishment of a valuation allowance in 2010 on
our U.S. deferred tax assets. Other items that had an impact on the 2011 tax provision included a $5.0 million benefit for the
reversal of a foreign net operating loss valuation allowance and changes in the mix of income/loss by jurisdiction.
The 2009 tax benefit included an increase in the state tax effective rate, additional reserves for uncertain tax positions
and the change in proportion of income by jurisdiction.
In 2011, 2010 and 2009 the net cash received (or paid) for income taxes, relating to both continuing and discontinued
operations, was ($4.9) million, $6.4 million and $14.8 million, respectively.
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