Stamps.com 2001 Annual Report Download - page 58

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STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
taxable income. The Company also has available a tax credit carryforward at December 31, 2001 of $748,000, which can be carried forward to
offset future taxable liabilities. The Company's federal net operating loss will begin to expire in 2018, state net operating loss will begin to
expire in 2006. The federal credits begin to expire in 2018 and the state credits will begin to expire in 2006. The Federal Tax Reform Act of
1986 and similar state tax laws contain provisions which may limit the net operating losses carryforwards to be used in any given year upon the
occurrence of certain events, including a significant change in ownership interests. The provision for income taxes is comprised of (in
thousands):
2001 2000
1999
---- ----
----
Current
Federal............................ $ -- $ -- $
--
State.............................. 4 1
1
---- ----
----
4 1
1
Deferred.............................. -- --
--
---- ----
----
Provision for income taxes..... $ 4 $ 1 $
1
==== ====
====
Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands):
2001 2000 1999
-------- -------- --------
Income tax at statutory federal rate............. $(71,255) $(72,403)
$(19,205)
State income taxes, net of federal benefit....... (12,227) (12,424)
(2,954)
Effect of tax credits............................ -- --
(377)
Effect of permanent differences.................. 61,159 26,107 2,144
Change in valuation allowance.................... 22,327 58,721 20,393
-------- -------- --------
$ 4 $ 1 $ 1
======== ======== ========
10. Commitments and Contingencies
Capital and Operating Leases
The Company leases certain equipment under capital lease arrangements expiring on various dates through 2002 (per schedule below). Included
in property and equipment are the following assets held under capital lease at December 31 (in thousands):
2002. EDGAR Online, Inc.