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STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The income tax expense (benefit) 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):
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. On September 9, 2014,
approved an amendment (the “Amendment”) to our 2010 Plan. Pursuant to the Amendment, the maximum aggregate number of shares of
common stock and stock equivalents available for the grant of awards under the 2010 Plan shall be increased by an additional 2,100,000 shares.
Except for the Amendment to the Plan to increase the number of awards, the Plan otherwise remains unchanged. The shares authorized by the
Amendment shall be subject to approval by our stockholders, expected to occur at our next annual meeting of stockholders in 2015. No share
awards may be issued under the Amendment, and no stock options issued under the Amendment shall become exercisable, prior to the date, if
any, on which our stockholders approve the Amendment. A summary of stock option activity is as follows (in thousands, except per share
amounts):
F-28
Table of Contents
2014 2013 2012
Current:
Federal
$
730
$
226
$
411
State
127
(68
)
154
857
158
565
Deferred:
Federal
(14,286
)
(7,842
)
(15,958
)
State
732
(1,871
)
1,534
(13,554
)
(9,713
)
(14,424
)
Benefit for income taxes
$
(12,697
)
$
(9,555
)
$
(13,859
)
2014
2013
2012
Income tax at statutory federal rate
$
8,223
$
11,764
$
8,823
State income taxes, net of federal benefit
290
652
1,516
Effect of permanent differences
512
199
12
Change in valuation allowance
(13,554
)
(9,713
)
(14,424
)
Other changes in valuation allowance, net
(11,480
)
(10,364
)
(13,431
)
Change in state rate
80
(789
)
4,186
Other
3,232
(1,304
)
(541
)
$
(12,697
)
$
(9,555
)
$
(13,859
)
10.
Employee Stock Plans