Travelzoo 2010 Annual Report Download - page 80

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(5) Income Taxes
The components of income (loss) from continuing operations before income tax expense for the years ended
December 31, 2010, 2009 and 2008 were as follows (in thousands):
2010 2009 2008
U.S. ............................................... $23,108 $17,879 $21,762
Foreign ............................................. 373 (4,188) (7,672)
$23,481 $13,691 $14,090
Income tax expense (benefit) from continuing operations for the years ended December 31, 2010, 2009, and
2008 consisted of the following current and deferred components categorized by federal and state jurisdictions. The
current provision is generally that portion of income tax expense that is currently payable to the taxing authorities.
The Company makes estimated payments of these amounts during the year. The deferred tax provision results from
changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable
amounts), which are presented in the last table of this footnote.
Current Deferred Total
(In thousands)
2010:
Federal............................................ $ 8,512 $(1,102) $ 7,410
State ............................................. 2,458 (174) 2,284
Foreign ........................................... 630 — 630
$11,600 $(1,276) $10,324
2009:
Federal............................................ $ 5,872 $ (144) $ 5,728
State ............................................. 1,638 (93) 1,545
$ 7,510 $ (237) $ 7,273
2008:
Federal............................................ $ 6,020 $ 796 $ 6,816
State ............................................. 1,388 (27) 1,361
$ 7,408 $ 769 $ 8,177
During 2008, an income tax benefit of $110,000 was recorded in stockholders’ equity for the tax benefit of
stock option exercises.
Income tax expense from continuing operations for the years ended December 31, 2010, 2009 and 2008
differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s
level of pretax income as a result of the following (in thousands):
2010 2009 2008
Federal tax at statutory rates ............................... $ 8,218 $4,792 $1,368
State taxes, net of federal income tax benefit ................... 1,488 1,004 885
Foreign losses not benefited................................ 500 1,434 6,166
Non-deductible expenses and other .......................... 118 43 (242)
Total income tax expense ................................. $10,324 $7,273 $8,177
53
TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)