iHeartMedia 2011 Annual Report Download - page 97

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CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 9 – INCOME TAXES
Significant components of the provision for income tax benefit (expense) are as follows:
Current tax expense of $18.0 million was recorded for 2011 as compared to current tax expenses of $51.2 million for 2010 primarily
due to the Company’s settlement of U.S. Federal and state tax examinations during 2011. Pursuant to the settlements, the Company
recorded a reduction to current income tax expense of approximately $51.1 million during 2011 to reflect the net current tax benefits
of the settlements.
Deferred tax benefits of $143.9 million for 2011, primarily relate to future benefits of net operating loss carryforwards, and were
lower when compared with deferred tax benefits of $211.2 million for 2010. The decrease in deferred tax benefits in 2011 is primarily
due to a decrease in Federal tax losses. Additional decreases are a result of the deferred tax impacts from the Company’s settlement of
U.S. Federal and state tax examinations during 2011 along with the write-off of deferred tax assets associated with the 2011 vesting
of certain equity awards.
For the year ended December 31, 2010, deferred tax benefits decreased $206.0 million as compared to 2009 primarily due to larger
impairment charges recorded in 2009 related to tax deductible intangibles. This decrease was partially offset by increases in deferred
tax expense in 2009 as a result of the deferral of certain discharge of indebtedness income, for income tax purposes, resulting from the
reacquisition of business indebtedness, as provided by the American Recovery and Reinvestment Act of 2009 signed into law on
February 17, 2009. In addition, in 2010 the Company recorded additional deferred tax expenses related to excess tax over book
depreciation resulting from the accelerated tax depreciation provisions available under the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 that was signed into law on December 17, 2010.
94
(In thousands)
Years Ended December 31,
2011
2010
2009
Current - Federal
$ 18,608
$ (4,534)
$104,539
Current - forei
g
n
(51,293)
(41,388)
(15,301)
Current - state
14,719
(5,278)
(13,109)
Total current benefit (ex
p
ense)
(17,966)
(51,200)
76,129
Deferred - Federal
126,078
211,137
366,024
Deferred - forei
g
n
13,708
(3,859)
30,399
Deferred - state
4,158
3,902
20,768
Total deferred benefit (ex
p
ense)
143,944
211,180
417,191
Income tax benefit (ex
p
ense)
125,978
$159,980
$493,320