ServiceMagic 2010 Annual Report Download - page 76

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 4—INCOME TAXES (Continued)
allowance is related to items for which it is more likely than not that the tax benefit will not be realized.
Included in "Other non-current assets" in the accompanying consolidated balance sheet at December 31, 2010 and 2009 is a non-current
deferred tax asset of $111.4 million and $103.8 million, respectively. In addition, included in "Other current assets" in the accompanying
consolidated balance sheet at December 31, 2010 and 2009 is a current deferred tax asset of $34.9 million and $41.8 million, respectively.
Included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet at December 31, 2009 is a current
deferred tax liability of $0.2 million. In addition, included in "Other long-term liabilities" in the accompanying consolidated balance sheet at
December 31, 2010 is a non-current deferred tax liability of $0.1 million.
At December 31, 2010, the Company had federal and state net operating losses ("NOLs") of $44.3 million and $134.0 million, respectively.
If not utilized, the federal NOLs will expire at various times between 2020 and 2030, and the state NOLs will expire at various times between
2011 and 2030. Utilization of federal NOLs will be subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended.
In addition, utilization of certain state NOLs may be subject to limitations under state laws similar to Section 382 of the Internal Revenue Code
of 1986. At December 31, 2010, the Company had foreign NOLs of $44.4 million available to offset future income. Of these foreign NOLs,
$38.2 million can be carried forward indefinitely, and $4.3 million and $1.9 million will expire within five years and twenty years, respectively.
During 2010, the Company recognized tax benefits related to NOLs of $4.7 million. Included in this amount was $3.7 million of tax benefits of
acquired attributes which was recorded as a reduction of goodwill. At December 31, 2010, the Company had federal and state capital losses of
$2.5 million and $209.9 million, respectively. If not utilized, the
71
December 31,
2010
2009
Deferred tax assets:
Accrued expenses
$
18,361
$
18,929
Net operating loss carryforwards
35,298
35,210
Tax credit carryforwards
12,765
15,747
Stock
-
based compensation
68,633
68,126
Income tax reserves, including related
interest
64,191
53,499
Intangible and other assets
10,339
27,256
Other
26,172
29,446
Total deferred tax assets
235,759
248,213
Less valuation allowance
(40,266
)
(35,331
)
Net deferred tax assets
195,493
212,882
Deferred tax liabilities:
Property and equipment
(16,648
)
(17,572
)
Investment in unconsolidated affiliates
(24,509
)
(43,527
)
Other
(8,124
)
(6,494
)
Total deferred tax liabilities
(49,281
)
(67,593
)
Net deferred tax asset
$
146,212
$
145,289