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The provision (benefit) for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows (in
thousands):
Our benefit for income taxes, excluding discontinued operations, was $13.0 million in fiscal 2015 compared to $4.0 million in fiscal 2014 .
Our effective tax rate, excluding discontinued operations, was 36% in fiscal 2015 compared to 12% in fiscal 2014 . Our effective tax rate in
fiscal 2015 was attributable primarily to tax benefits recorded from the refund of $5.4 million resulting from the carryback of fiscal 2015 losses,
of which $1.3 million was recognized in fiscal 2014; the recognition of a state income tax refund of $3.0 million and a refund of $1.1 million
from a change in tax accounting method, both related to prior years and received in fiscal 2015; and the reversal of tax reserves of $4.2 million
due to loss carryback, expiration of the statute of limitations, and settlement of our California audit. Our effective tax rate in fiscal 2014 was
lower than the tax computed at the U.S. federal statutory income tax rate due primarily to the increase in the valuation allowance which resulted
in additional federal tax expense of $7.0 million . Our provision for income taxes was $1.1 million in fiscal 2013 . Our effective tax rate,
excluding discontinued operations, was 16% in fiscal 2013 .
We received a $3.0 million income tax refund in January 2015 from the state of California as a result of the filing and subsequent audit of
our California amended returns for fiscal 2009 and 2010. We amended our fiscal 2009 and 2010 returns due to a favorable tax ruling we received
with respect to an alternative apportionment method. The state refund was not previously
F-27
Fiscal Year Ended June 30,
2015 2014 2013
Current income taxes:
Federal
$
(10,214
)
$
(7,506
)
$
2,823
State
(3,674
)
(397
)
176
Foreign
219
555
487
Total current income taxes
(13,669
)
(7,348
)
3,486
Deferred income taxes:
Federal
1,334
3,205
(2,315
)
State
—
128
(78
)
Foreign
(671
)
—
—
Total deferred income taxes
663
3,333
(2,393
)
Provision (benefit) for income taxes from continuing operations
(13,006
)
(4,015
)
1,093
Provision for income taxes from discontinued operations
—
—
4,226
Total provision (benefit) for income taxes
$
(13,006
)
$
(4,015
)
$
5,319
Fiscal Year Ended June 30,
2015 2014 2013
Tax at federal statutory tax rate
$
(12,624
)
$
(11,738
)
$
6,435
State taxes—net of federal benefit
(893
)
(269
)
146
Non-deductible expenses
68
495
522
Research and development credits
(2,678
)
(983
)
(1,200
)
Section 199 deduction
(907
)
425
(561
)
Foreign income taxed at different rates
(276
)
(119
)
(195
)
Stock-based compensation expense
1,011
1,368
1,291
Transfer pricing adjustment
—
— (
1,002
)
Tax exempt income
(844
)
(265
)
(364
)
Change in valuation allowance - federal
6,138
6,959
—
Change in tax accounting method
(1,121
)
—
—
FIN 48 release
(827
)
—
—
Other
(53
)
112
247
Total provision (benefit) for income taxes
$
(13,006
)
$
(4,015
)
$
5,319