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STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The benefit for income taxes consists of (in thousands):
Differences between the benefit for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands):
(1)
Other changes in valuation allowance, net includes the tax effect of utilization of net operating losses of $13 million, $0 and $401,000 for the
years ended December 31, 2012, 2011 and 2010, respectively, which were provided for as part of the valuation allowance prior to utilization.
10. Employee Stock Plans
Stock Incentive Plans
Our 1999 Stock Incentive Plan (the “1999 Plan”), which became effective in June 1999, was the successor to the 1998 Stock Plan (the “
1998
Plan”).
Upon approval of the 1999 Plan, all outstanding options under the 1998 Plan were transferred to the 1999 Plan, and no further option
grants were made under the 1998 Plan. All outstanding options under the 1998 Plan continue to be governed by the terms and conditions of the
existing option agreements for those grants, unless our compensation committee decides to extend one or more features of the 1999 Plan to those
options. In June 2009, our 1999 Plan expired and no further options grants were made under the 1999 Plan. Our 2010 Equity Incentive Plan (the
“2010 Plan”)
was approved by our stockholders in June 2010. Under the 2010 Plan, we are authorized to issue 3,500,000 shares of common
stock and stock units, although “full value” awards (such as restricted stock and restricted stock units) will be counted against the 2010 Plan’
s
overall limits as two shares (rather than one), while options and stock appreciation rights will be counted as one share. A summary of stock
option activity is as follows (in thousands, except per share amounts):
Table of Contents
2012
2011
2010
Current:
Federal
$
411
$
—
$
34
State
154
—
—
565
—
34
Deferred:
Federal
(15,958
)
(7,245
)
(3,396
)
State
1,534
(1,230
)
(583
)
(14,424
)
(8,475
)
(3,979
)
Benefit for income taxes
$
(13,859
)
$
(8,475
)
$
(3,945
)
2012
2011
2010
Income tax at statutory federal rate
$
8,823
$
6,057
$
534
State income taxes, net of federal benefit
1,516
1,044
36
Effect of permanent differences
12
12
467
Change in valuation allowance
-
discrete release
(14,424
)
(8,475
)
(3,979
)
Other changes in valuation allowance, net
(1)
(13,431
)
(7,225
)
(1,026
)
Change in state rate
4,186
—
—
Unrecognized tax benefits
160
12
23
Other
(701
)
100
—
$
(13,859
)
$
(8,475
)
$
(3,945
)
F
-
23