8x8 2014 Annual Report Download - page 67

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2. INCOME TAXES
For the years ended March 31, 2014, 2013 and 2012, the Company recorded a provision (benefit) for income taxes of $2,219,000, $9,399,000
and ($62,354,000), respectively. The provision for the year ended March 31, 2014 and 2013 was attributable to federal and state current and
deferred 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 significant portion of the valuation allowance related to the Company's deferred tax assets. The components of the
consolidated provision for income taxes for fiscal 2014, 2013 and 2012 consisted of the following (in thousands):
The Company's income before income taxes included $0.8 million, $0 and $0 of foreign subsidiary loss for the fiscal years ended March 31,
2014, 2013 and 2012, respectively.
Deferred tax assets were comprised of the following (in thousands):
As of March 31, 2014 and 2013, management assessed the realizability of deferred tax assets based on the available evidence, including a history
of taxable income and estimates of future taxable income. At March 31, 2014, management evaluated the need for a valuation allowance and
determined that a valuation allowance of approximately $5.6 million was needed. At March 31, 2013, management evaluated the need for a
valuation allowance and determined that a valuation allowance of approximately $3.1 million was needed. The net change in the valuation
allowance for the years ended March 31, 2014 and 2013 was an increase of $2.5 million and $1.0, respectively.
62
March 31,
Current:
2014
2013
2012
Federal
$
-
$
-
$
-
State
276
434
76
Foreign
-
-
(8)
276
434
68
Deferred
Federal
$
1,578
$
7,185
$
(56,665)
State
365
1,780
(5,757)
Foreign
-
-
-
Total deferred tax provision (benefit)
1,943
8,965
(62,422)
Income tax provision (benefit)
$
2,219
$
9,399
$
(62,354)
March 31,
Current deferred tax assets
2014
2013
Net operating loss carryforwards
$
333
$
4,795
Inventory valuation
33
18
Reserves and allowances
1,791
2,182
Net current deferred tax assets
2,157
6,995
Net operating loss carryforwards
51,598
48,002
Research and development and other credit carryforwards
4,488
3,026
Fixed assets and intangibles
(2,819)
(2,468)
Net non
-
current deferred tax assets
53,267
48,560
Valuation allowance
(5,562)
(3,107)
Total
$
49,862
$
52,448