Sprint - Nextel 2011 Annual Report Download - page 91

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Income tax (expense) benefit consists of the following:
The differences that caused our effective income tax rates to vary from the 35% federal statutory rate for income taxes were as follows:
Income tax (expense) benefit allocated to other items was as follows:
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F-24
Note 10. Income Taxes
Year Ended December 31,
2011 2010 2009
(in millions)
Current income tax (expense) benefit
Federal $(1) $48 $279
State (20) 15 13
Total current income tax (expense) benefit (21) 63 292
Deferred income tax (expense) benefit
Federal (136) (270) 963
State (95) 40 (196)
Total deferred income tax (expense) benefit (231) (230) 767
Foreign income tax (expense) benefit (2) 1 (1)
Total income tax (expense) benefit $ (254) $(166) $1,058
Year Ended December 31,
2011 2010 2009
(in millions)
Income tax benefit at the federal statutory rate $ 923 $ 1,155 $ 1,223
Effect of:
State income taxes, net of federal income tax effect 80 118 93
State law changes, net of federal income tax effect (38)
—
(6)
Reduction in liability for unrecognized tax benefits (1) 18 83
Tax expense related to equity awards (13) (42) (33)
Change in valuation allowance (1,221) (1,418) (281)
Other, net 16 3 (21)
Income tax (expense) benefit $ (254) $ (166) $1,058
Effective income tax rate (9.6)% (5.0)% 30.3%
Year Ended December 31,
2011 2010 2009
(in millions)
Unrecognized net periodic pension and other postretirement benefit cost(1) $
—
$5 $(87)
Unrealized holding gains/losses on securities(1) (1) 1 (9)
Stock ownership, purchase and option arrangements(2)
—
—
(56)
(1) These amounts have been recognized in accumulated other comprehensive loss.
(2) These amounts have been recorded directly to shareholders' equity-paid-in capital on the consolidated balance sheets.