Plantronics 2010 Annual Report Download - page 90

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82
15. INCOME TAXES
Income tax expense from continuing operations for fiscal years 2008, 2009 and 2010 consisted of the following:
(in thousands)
2008 2009 2010
Current:
Federal $ 20,990 $ 6,140 $ 17,761
State 3,087 2,452 2,290
Foreign 9,144 4,739 7,241
) (476) 35
Total deferred benefit for income taxes (4,213) (756) (3,005)
Income tax expense from continuing operations $ 29,008 $ 12,575
$ 24,287
Fiscal Year Ended March 31,
Total current provision for income taxes 33,221 13,331 27,292
Deferred:
Federal (2,525) 1,323 (2,841)
State (776) (1,603) (199)
Foreign (91 2
The components of income from continuing operations before income taxes for fiscal years 2008, 2009 and 2010 are as follows:
(in thousands) 2008 2009 2010
United States $ 51,192 $ 32,671 $ 51,392
Foreign 69,828 25,246 49,348
Income from continuing operations before income taxes $ 121,020 $ 57,917 $ 100,740
Fiscal Year Ended March 31,
The following is a reconciliation between statutory federal income taxes and the income tax expense from continuing operations for
fiscal years 2008, 2009, and 2010:
(in thousands)
2008 2009 2010
Tax expense at statutory rate $ 42,357
$ 20,272
$ 35,259
Foreign operations taxed at different rates (14,685) (4,546) (11,166)
State taxes, net of federal benefit 2,312 849 2,091
Research and development credit (612) (3,117) (1,383)
Other, net (364) (883) (514)
Income tax expense from continuing operations $ 29,008 $ 12,575
$ 24,287
Fiscal Year Ended March 31,
The effective tax rate for fiscal years 2008, 2009 and 2010 was 24.0%, 21.7%, and 24.1% respectively. The effective tax rate for
fiscal 2010 is higher than the previous year primarily due to the incremental benefit associated with the release of a higher amount of
tax reserves resulting from the lapse of the statute of limitations in certain jurisdictions in fiscal 2009 and reduced federal tax credits in
fiscal 2010 as the research tax credit was available for only nine months compared to fifteen months in fiscal 2009 due to the
reinstatement of the credit in October 2008 retroactively to January 1, 2008.