America Online 2009 Annual Report Download - page 89
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Table of Contents
Interest Expense
Interest expense amounted to $5.2 million, $8.0 million and $9.7 million for the years ended December 31, 2009, 2008 and 2007, respectively, and is
included in other income (loss), net on the consolidated statements of operations. The weighted-average interest rate on AOL's capital lease obligations was
5.67% and 5.73% at December 31, 2009 and 2008, respectively. The rate on capital lease obligations due within one year was 5.66% at December 31, 2009.
NOTE 6—INCOME TAXES
AOL was included in Time Warner's consolidated U.S. federal income tax return filings for each of the years presented through December 9, 2009, the
date of the spin-off. AOL will file its own consolidated U.S. federal income tax return following the spin-off (beginning with the short period from
December 10 through December 31, 2009). AOL also files separate income tax returns in certain state and foreign jurisdictions in which it operates.
AOL's income taxes are computed and reported herein under the "separate return method" for the periods prior to the spin-off. The separate return
method applies the accounting guidance for income taxes to the standalone financial statements as if AOL were a separate taxpayer and a standalone
enterprise for the entire period. Income taxes related to the short period from December 10 through December 31, 2009 are calculated based on AOL's
separate income tax status.
Domestic and foreign income (loss) from continuing operations before income taxes is as follows (in millions):
Years Ended December 31,
2009 2008 2007
Domestic $ 583.6 $ (1,123.1) $ 1,272.5
Foreign (128.4) (48.4) 582.5
Total $ 455.2 $ (1,171.5) $ 1,855.0
Current and deferred income taxes (tax benefits) provided on income from continuing operations are as follows (in millions):
Years Ended December 31,
2009 2008 2007
U.S. federal:
Current $ 172.3 $ 309.8 $ 426.2
Deferred (1.5) (35.1) 102.6
Foreign:
Current 1.1 13.1 19.0
Deferred (2.8) (0.7) (0.8)
State and local:
Current 40.0 81.7 94.3
Deferred (2.4) (13.7) 0.4
Total $ 206.7 $ 355.1 $ 641.7
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