|12 Months Ended|
Dec. 31, 2011
8. INCOME TAXES
The provision for income taxes from continuing operations consisted of the following:
The provision for income taxes from discontinued operations was $0.5 million, $33.9 million, and $9.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.
Domestic and foreign income from continuing operations before income taxes was as follows:
The provision for income taxes reconciles with the U.S. federal statutory rate, as follows:
We record deferred income taxes using enacted tax laws and rates for the years in which the taxes are expected to be paid. Deferred income tax assets and liabilities are recorded based on the differences between the financial reporting and income tax bases of assets and liabilities. For additional information about our income tax policy, see Note 1 of the Notes to Consolidated Financial Statements.
Components of the deferred income tax assets and liabilities at December 31, 2011 and 2010, were as follows:
Our deferred income tax assets, included in other current assets, and deferred income tax liabilities at December 31, 2011 and 2010, are included in the accompanying Consolidated Balance Sheets as follows:
We record deferred income taxes on the temporary differences of our foreign subsidiaries and branches, except for the temporary differences related to undistributed earnings of subsidiaries which we consider indefinitely invested. We have indefinitely invested $85.7 million attributable to pre-2004 undistributed earnings of our Canadian and Chilean subsidiaries. If the pre-2004 earnings were not considered indefinitely invested, $6.9 million of deferred U.S. income taxes would have been provided.
At December 31, 2011, we had U.S. federal and state net operating loss carryforwards of $75.6 million which will expire at various times between 2012 and 2029. We also had foreign net operating loss carryforwards totaling $311.8 million of which $29.0 million will expire between 2012 and 2029 and the remaining $282.8 million will carryforward indefinitely. Foreign capital loss carryforwards of $19.2 million may be carried forward indefinitely. The deferred tax asset related to the net operating loss and capital loss carryforwards is $102.0 million of which $92.1 million has been fully reserved in the deferred tax valuation allowance. Additionally, we had foreign tax credit carryforwards of $54.0 million which will be available to be utilized upon repatriation of foreign earnings. We also had state credit carryforwards of $0.9 million which will begin expiring in 2017.
Cash paid for income taxes, net of amounts refunded, was $127.5 million, $163.7 million and $103.2 million during the twelve months ended December 31, 2011, 2010 and 2009, respectively.
We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of Income.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
We recorded liabilities of $25.1 million and $27.9 million for unrecognized tax benefits as of December 31, 2011 and 2010, respectively, which included interest and penalties of $5.2 million and $7.4 million, respectively. As of December 31, 2011 and 2010, the total amount of unrecognized benefits that, if recognized, would have affected the effective tax rate was $18.9 million and $19.7 million, respectively, which included interest and penalties of $4.5 million and $5.5 million, respectively. The accruals for potential interest and penalties during 2011 and 2010 were not material.
Equifax and its subsidiaries are subject to U.S. federal, state and international income taxes. We are generally no longer subject to federal, state or international income tax examinations by tax authorities for years before 2006. Due to the potential for resolution of state and foreign examinations, and the expiration of various statutes of limitations, it is reasonably possible that Equifax’s gross unrecognized tax benefit balance may change within the next twelve months by a range of zero to $4.6 million.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef