Netgear 2012 Annual Report Download - page 81

Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Net deferred tax assets consist of the following (in thousands):
Management's judgment is required in determining the Company's provision for income taxes, its deferred tax assets and any valuation
allowance recorded against its deferred tax assets. In management's judgment it is more likely than not that such assets will be realized in the future
as of December 31, 2012 , and as such no valuation allowance has been recorded against the Company's deferred tax assets.
The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows:
Income tax benefits in the amount of $1.1 million , 3.5 million and 3.6 million related to stock options were credited to additional paid-
in
capital during the years ended December 31, 2012 , 2011 , and 2010
, respectively. As a result of changes in fair value of available for sale securities,
income tax expense of $5,000 , $8,000 and $3,000 was recorded in comprehensive income related to the years ended December 31, 2012 , 2011
, and
2010 , respectively.
77
Year Ended December 31,
2012 2011
Deferred Tax Assets:
Accruals and allowances
$
20,738
$
22,329
Net operating loss carryforwards
7,837
326
Stock-based compensation
8,133
6,304
Deferred rent
2,258
2,138
Deferred revenue
1,552
411
Tax credit carryforwards
1,410
1,433
Acquired intangible assets
—
566
Other
261
256
42,189
33,763
Deferred Tax Liabilities:
Acquired intangible assets
(1,107
)
—
Depreciation and amortization
(1,535
)
(2,698
)
(2,642
)
(2,698
)
Net deferred tax assets
39,547
31,065
Current portion
22,691
23,088
Non-current portion
16,856
7,977
Net deferred tax assets
$
39,547
$
31,065
Year Ended December 31,
2012 2011 2010
Tax at federal statutory rate
35.0
%
35.0
%
35.0
%
State, net of federal benefit
2.1
%
1.5
%
4.2
%
Impact of international operations
(4.8
)%
(9.5
)%
5.1
%
Stock-based compensation
0.6
%
—
%
0.7
%
Tax credits
0.1
%
(0.7
)%
(0.7
)%
Others
0.1
%
0.1
%
(0.1
)%
Provision for income taxes
33.1
%
26.4
%
44.2
%