Shutterfly 2013 Annual Report Download - page 99
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The components of the provision for income taxes are as follows (in thousands):
December 31,
2013 2012 2011
Federal:
Current ...................................... $ 1,181 $ 14,605 $ 5,800
Deferred ...................................... 1,870 (316) (3,095)
3,051 14,289 2,705
State:
Current ...................................... 1,711 2,383 1,280
Deferred ...................................... (1,234) 455 (2,671)
477 2,838 (1,391)
Foreign:
Current ...................................... 412 118 —
Deferred ...................................... (305) (85) —
107 33 —
Total income tax expense (benefit):
Current ...................................... 3,304 17,106 7,080
Deferred ...................................... 331 54 (5,766)
$ 3,635 $ 17,160 $ 1,314
The Company’s actual tax expense differed from the statutory federal income tax rate, as follows:
December 31,
2013 2012 2011
Income tax expense at statutory rate ................... 35.0% 35.0% 34.0%
State income taxes ................................ (4.5) 0.9 (7.7)
Stock-based compensation ........................... (15.2) 1.1 (13.5)
R&D tax credit .................................. (17.1) — (7.2)
Acquisition costs .................................. — — 3.0
Non-deductible executive compensation ................. 20.6 — —
Valuation allowance ............................... 8.0 5.5 —
Other .......................................... 1.3 0.2 —
28.1% 42.7% 8.6%
At December 31, 2013, the Company had approximately $39.9 million, $46.3 million, and $16.0 million
of federal, California and other state jurisdictions net operating loss carryforwards, respectively, to reduce
future taxable income. $27.7 million, $33.8 million, and $2.0 million of the Federal, California, and other
state jurisdiction net operating loss carryforwards is associated with windfall tax benefits and will be
recorded as additional paid-in capital when realized. These carryforwards will expire beginning in the year
2020 and 2016 for federal and California purposes, respectively, and no sooner than 2020 for the portion
related to other state jurisdictions, if not utilized.
The Company also had research and development credit carryforwards of approximately $7.2 million
and $7.2 million for federal and state income tax purposes, respectively, at December 31, 2013, of which
$5.4 million and $2.4 million is associated with windfall tax benefits for federal and state income tax
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