ServiceMagic 2011 Annual Report Download - page 78

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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 4—INCOME TAXES (Continued)
The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities
are presented below. The valuation allowance is related to items for which it is more likely than not that the tax benefit will not be realized.
Included in "Other current assets" in the accompanying consolidated balance sheet at December 31, 2011 and 2010 is a current deferred tax
asset of $41.0 million and $34.9 million, respectively and included in "Other non-
current assets" in the accompanying consolidated balance sheet
at December 31, 2011 and 2010 is a non-current deferred tax asset of $1.4 million and $0.9 million, respectively. In addition, included in
"Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet at December 31, 2011 is a current deferred tax
liability of $0.4 million.
At December 31, 2011, the Company had federal and state net operating losses ("NOLs") of $35.1 million and $115.6 million, respectively.
If not utilized, the federal NOLs will expire at various times between 2023 and 2031, and the state NOLs will expire at various times
between 2012 and 2031. 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, 2011, the Company had foreign NOLs of $48.2 million available to offset future income. Of these
foreign NOLs, $42.1 million can be carried forward indefinitely and $6.1 million will expire at various times
72
December 31,
2011 2010
(In thousands)
Deferred tax assets:
Accrued expenses
$
25,130
$
18,361
Net operating loss carryforwards
31,000
35,298
Tax credit carryforwards
10,518
12,765
Stock
-
based compensation
84,543
68,633
Income tax reserves, including related interest
57,016
64,191
Intangible and other assets
—
10,339
Equity method investments
12,850
—
Other
22,490
32,103
Total deferred tax assets
243,547
241,690
Less valuation allowance
(45,084
)
(40,266
)
Net deferred tax assets
198,463
201,424
Deferred tax liabilities:
Property and equipment
(16,264
)
(16,648
)
Investment in subsidiaries
(374,282
)
(378,704
)
Intangible and other assets
(56,597
)
—
Equity method investments
—
(
32,601
)
Other
(11,437
)
(8,124
)
Total deferred tax liabilities
(458,580
)
(436,077
)
Net deferred tax liability
$
(260,117
)
$
(234,653
)