5. Income Taxes

A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate for continuing operations is as follows:


	2011			2010		2009

Statutory federal income tax rate		35.0%			35.0%		35.0%
State income taxes, net of federal effect		2.2%			2.7%		2.9%
Other, net		(2.1%	)		0.3%		(0.7%	)


Effective income tax rate		35.1%			38.0%		37.2%

The income tax provision for continuing operations was as follows:


(In millions)	2011		2010		2009

Current:
Federal	$	201	$	224	$	176
State		18		32		29
Foreign		8		8		4

		227		264		209


Deferred:
Federal		21		32		57
State		5		2		7
Foreign		3		3		-

		29		37		64


Income tax provision	$	256	$	301	$	273

Significant components of deferred tax assets and liabilities consisted of the following at December 31:


(In millions)	2011			2010

Accrued expenses	$	42		$	36
Interest rate hedge contracts		48			38
Share-based compensation		37			34
Net operating loss and credit carry-forwards		75			26
Other		19			19

Total deferred tax assets		221			153


Software development costs		(91	)		(80	)
Intangible assets		(630	)		(608	)
Property and equipment		(49	)		(26	)
Other		(24	)		(29	)

Total deferred tax liabilities		(794	)		(743	)


Total	$	(573	)	$	(590	)

Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31:


(In millions)	2011			2010

Current assets	$	44		$	37
Noncurrent liabilities		(617	)		(627	)


Total	$	(573	)	$	(590	)

Unrecognized tax benefits were as follows:


(In millions)	2011			2010			2009

Unrecognized tax benefits - Beginning of year	$	41		$	47		$	77
Increases for tax positions taken during the current year		5			5			4
Increases for tax positions taken in prior years		2			1			1
Decreases for tax positions taken in prior years		(7	)		(4	)		-
Decreases for settlements		(5	)		(2	)		(34	)
Lapse of the statute of limitations		(9	)		(6	)		(1	)


Unrecognized tax benefits - End of year	$	27		$	41		$	47

At December 31, 2011, unrecognized tax benefits of $20 million, net of federal and state benefits, would affect the effective income tax rate from continuing operations if recognized. In 2012, reductions to unrecognized tax benefits for decreases in tax positions taken in prior years, settlements and the lapse of statutes of limitations are estimated to total approximately $3 million. The Company classifies interest and penalties related to income taxes as components of its income tax provision. The income tax provision from continuing operations included interest and penalties on unrecognized tax benefits of less than $2 million in each of 2011, 2010 and 2009. Accrued interest and penalties related to unrecognized tax benefits totaled $5 million and $7 million at December 31, 2011 and 2010, respectively.

The Company's federal tax returns for 2006 through 2011 and tax returns in certain states and foreign jurisdictions for 2005 through 2011 remain subject to examination by taxing authorities. At December 31, 2011, the Company had federal net operating loss carry-forwards of $157 million, which expire in 2014 through 2031, state net operating loss carry-forwards of $212 million, which expire in 2012 through 2031, and foreign net operating loss carry-forwards of $63 million, $10 million of which expire in 2016 through 2031 and the remainder of which do not expire.