ServiceMagic 2009 Annual Report Download - page 82

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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 4—INCOME TAXES (Continued)
losses of $283.8 million. If not utilized, the state capital losses will expire between 2013 and 2014. Utilization of capital losses will be limited to
the Company's ability to generate future capital gains.
At December 31, 2009, the Company had tax credit carryforwards of $17.4 million. Of this amount, $11.1 million related to federal credits
for foreign taxes, $5.4 million related to federal and state tax credits for research activities, and $0.9 million related to various state and local tax
credits. Of these credit carryforwards, $6.0 million can be carried forward indefinitely, and $11.4 million will expire within ten years.
During 2009, the Company's valuation allowance decreased by $4.2 million. The valuation allowance movement primarily relates to
reductions for state NOLs and the reversal of certain deferred tax assets recorded through other comprehensive income. These reductions were
partially offset by state capital loss carryforwards and foreign NOLs. At December 31, 2009, the Company had a valuation allowance of
$35.3 million related to the portion of tax loss carryforwards and other items for which it is more likely than not that the tax benefit will not be
realized.
74