Memorex 2014 Annual Report Download - page 79

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74
Note 10 — Income Taxes
The components of loss from continuing operations before income taxes were as follows:
Years Ended December 31,
2014 2013 2012
(In millions)
U.S. $ (95.3) $ (25.2) $ (266.1)
International (14.0) 2.2 (57.3)
Total $ (109.3) $ (23.0) $ (323.4)
The components of the income tax provision from continuing operations were as follows:
Years Ended December 31,
2014 2013 2012
(In millions)
Current
Federal $ 0.5 $ (0.7) $ (11.5)
State (0.5) — —
International (0.1) 5.9 6.3
Deferred
Federal 1.7 — 8.8
State — — —
International 1.5 (3.8) (2.2)
Total $ 3.1 $ 1.4 $ 1.4
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,
2014 2013 2012
(In millions)
Tax at statutory U.S. tax rate $ (38.3) $ (8.1) $ (113.2)
State income taxes, net of federal benefit (3.2) (0.2) (6.3)
Net effect of international operations 1.1 3.1 25.0
Settlement of UK pension plan — (2.3) —
Valuation allowances 22.9 (3.2) 89.2
Tax on unremitted earnings of foreign subsidiaries 15.9 — —
U.S. tax on foreign earnings 4.7 6.2 3.9
Stock-based compensation 2.1 3.1 2.4
Uncertain tax positions (1.2) 2.2 0.3
Goodwill impairment 10.7 — —
Capital losses (11.4) — —
Other (0.2) 0.6 0.1
Income tax provision $ 3.1 $ 1.4 $ 1.4
Our 2014 tax provision of $3.1 million primarily represents tax expense related to operations outside the United
States and tax expense recorded for the liability on unremitted foreign earnings of $1.7 million.
Our 2013 tax provision of $1.4 million primarily represents tax expense related to operations outside the United
States and unrecognized tax benefits recorded during the year offset by the tax benefit related to the settlement of
our UK pension plan during the year.