Shutterfly 2014 Annual Report Download - page 104
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The components of the benefit from/(provision for) income taxes are as follows (in thousands):
December 31,
2014 2013 2012
Federal:
Current ...................................... $ (487) $ 1,181 $ 14,605
Deferred ...................................... (1,381) 1,870 (316)
(1,868) 3,051 14,289
State:
Current ...................................... 704 1,711 2,383
Deferred ...................................... (1,038) (1,234) 455
(334) 477 2,838
Foreign:
Current ...................................... 268 412 118
Deferred ...................................... (185) (305) (85)
83 107 33
Total income tax expense (benefit):
Current ...................................... 485 3,304 17,106
Deferred ...................................... (2,604) 331 54
$ (2,119) $ 3,635 $ 17,160
The Company’s actual tax expense differed from the statutory federal income tax rate, as follows:
December 31,
2014 2013 2012
Income tax expense at statutory rate ................... 35.0% 35.0% 35.0%
State income taxes ................................ 20.1 (4.5) 0.9
Stock-based compensation ........................... 2.2 (15.2) 1.1
R&D tax credit .................................. 14.8 (17.1) —
Non-deductible executive compensation ................. (29.7) 20.6 —
Valuation allowance ............................... (17.2) 8.0 5.5
Other .......................................... (4.0) 1.3 0.2
21.2% 28.1% 42.7%
At December 31, 2014, the Company had approximately $50.4 million, $45.4 million, and $16.7 million
of federal, California and other state jurisdictions net operating loss carryforwards, respectively, to reduce
future taxable income. $33.2 million, $35.0 million, and $2.7 million of the Federal, California, and other
state jurisdiction net operating loss carryforwards are associated with windfall tax benefits and will be
recorded as additional paid-in capital when realized. These carryforwards will expire beginning in the year
2021 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 $8.9 million
and $9.2 million for federal and state income tax purposes, respectively, at December 31, 2014, of which
$7.4 million and $2.5 million is associated with windfall tax benefits for federal and state income tax
purposes, respectively, that will be recorded as additional paid-in capital when realized. The research and
development credits may be carried forward over a period of 20 years for federal tax purposes, indefinitely
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