8x8 2012 Annual Report Download - page 53

The following shares attributable to outstanding stock options, restricted purchase rights and warrants were excluded from the
calculation of diluted earnings per share because their inclusion would have been anti dilutive (in thousands):
2012 2011 2010
Common stock options 435 1,093 8,403
Stock purchase rights 73 33 1
Warrants - - 1,786
508 1,126 10,190
Years Ended March 31,
RECENT ACCOUNTING PRONOUNCEMENTS
In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRSs")."
Under ASU 2011-04, the guidance amends certain accounting and disclosure requirements related to fair value measurements
to ensure that fair value has the same meaning in U.S. GAAP and in IFRSs and that their respective fair value measurement
and disclosure requirements are the same. ASU 2011-04 is effective for public entities during interim and annual periods
beginning after December 15, 2011. The Company is planning to adopt ASU 2011-04 in the first quarter of fiscal 2013 and
does not believe that the adoption of ASU 2011-04 will have a material impact on the Company's consolidated results of
operation and financial condition.
In June 2011, the FASB issued ASU No. 2011-05, "Comprehensive Income (ASC Topic 220): Presentation of Comprehensive
Income," ("ASU 2011-05") which amends current comprehensive income guidance. This accounting update eliminates the
option to present the components of other comprehensive income as part of the statement of shareholders' equity. Instead, we
must report comprehensive income in either a single continuous statement of comprehensive income which contains two
sections, net income and other comprehensive income, or in two separate but consecutive statements. ASU 2011-05 will be
effective for public companies during the interim and annual periods beginning after December 15, 2011 with early adoption
permitted. The Company is planning to adopt ASU 2011-05 in the first fiscal quarter of fiscal 2013 and does not believe that
the adoption of ASU 2011-05 will have a material impact on the Company's consolidated results of operation and financial
condition.
In September 2011, the FASB issued ASU No. 2011-08, "Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for
Impairment," ("ASU 2011-08") which simplifies how entities test goodwill for impairment. This accounting update permits an
entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is
less than its carrying amount as a basis for determining whether it is necessary to perform the two-step good will impairment
test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. ASU
2011-08 will be effective for annual and interim goodwill impairment tests performed for fiscal years beginning after
December 15, 2011 with early adoption permitted. The adoption of ASU 2011-08 did not have a material impact on the
Company's consolidated results of operation and financial condition.
In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220) - Deferral of the Effective Date
for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in
Accounting Standards Update No. 2011-05 ("ASU 2011-12"). ASU 2011-12 defers changes in Update 2011-05 that relate to
the presentation of reclassification adjustments. ASU 2011-12 is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2011. The Company is planning to adopt ASU 2011-12 in the first fiscal quarter of fiscal
2013 and does not believe that the adoption of ASU 2011-12 will have a material impact on the Company's consolidated results
of operation and financial condition.
2. INCOME TAXES
For the year ended March 31, 2012, the Company recorded a benefit for income taxes of $62.4 million which was primarily
attributable to the release of a portion of the valuation allowance related to the Company’ s deferred tax assets. For the years
ended March 31, 2011 and 2010, the Company recorded a provision for income taxes of $55,000, and $3,000, respectively,
which was attributable to state tax in several states and foreign tax, offset by federal refund in lieu of bonus depreciation (in
accordance with the Economic Stimulus Act of 2010). The components of the consolidated provision for income taxes for
fiscal 2012, 2011 and 2010 consisted of the following (in thousands):
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