Plantronics 2009 Annual Report Download - page 99

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91
14. INCOME TAXES
Income tax expense (benefit) for fiscal 2007, 2008 and 2009 consisted of the following:
(in thousands)
2007 2008 2009
Current:
Federal $ 12,587 $ 10,096 $ (1,071)
State 1,976 2,443 1,735
Foreign 6,158 9,242 4,934
Total current provision for income taxes 20,721 21,781 5,598
Deferred:
Federal (7,419) (3,210) (21,402)
State (1,045) (778) (3,506)
Foreign (862) (951) (507)
Total deferred benefit for income taxes (9,326) (4,939) (25,415)
Income tax expense (benefit) $ 11,395 $ 16,842 $ (19,817)
Fiscal Year Ended March 31,
The components of Income (loss) before income taxes for fiscal 2007, 2008 and 2009 are as follows:
(in thousands) 2007 2008 2009
United States $ 7,136 $ 19,980 $ (110,216)
Foreign 54,402 65,257 25,500
Income (loss) before income tax expense (benefit) 61,538 85,237 (84,716)
Fiscal Year Ended March 31,
The following is a reconciliation between statutory federal income taxes and the total income tax expense (benefit):
(in thousands)
2007 2008 2009
Tax expense (benefit) at statutory rate $ 21,538 $ 29,833 $ (29,651)
Foreign operations taxed at different rates (9,646) (13,868) (3,574)
State taxes, net of federal benefit 930 1,665 (1,771)
Research and development credit (1,978) (814) (3,117)
Goodwill impairment - - 19,127
Other, net 551 26 (831)
Income tax expense (benefit) $ 11,395 $ 16,842 $ (19,817)
Fiscal Year Ended March 31,
The effective tax rate for fiscal 2007, 2008 and 2009 was 18.5%, 19.8% and 23.4%, respectively. The effective tax rate for fiscal 2009
is higher than the previous year primarily due to the change in foreign versus domestic income mix, the release of tax reserves
resulting from the lapse of the statute of limitations in certain jurisdictions and the reinstatement of the U.S. research tax credit offset
by the non-deductible goodwill impairment and the release of the deferred tax liability resulting from the impairment of the associated
intangible assets.