THQ 2007 Annual Report Download - page 77

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69
12.Income Taxes
United States and foreignincomebefore taxes and details of the provision for income tax are as follows (in
thousands):
Fiscal Year Ended March 31,
2007 2006 2005
Income from continuing operations before income taxesand minority
interest:
United States .................................................. $60,955 $29,753 $67,826
Foreign. ....................................................... 30,073 10,037 9,067
$91,028 $39,790 $76,893
Provision for income tax expense (benefit):
Current
Federal. ..................................................... $(518) $(9,877) $323
State........................................................ (12) 1,151 (3,695)
Foreign ..................................................... 11,211 5,325 2,593
Totalcurrent. ................................................ 10,681 (3,401) (779)
Deferred
Federal. ..................................................... 6,905 8,967 7,867
State........................................................ (1,036) (5,057) 1,393
Foreign ..................................................... (519) (1,679) 1,754
Totaldeferred................................................ 5,350 2,23111,014
Add back benefit (expense) recorded to stockholders’ equity:
Tax benefit related to stock optionexercises....................... 8,866 9,162 6,940
Taxexpense relatedtounrealizedgainon investments............... 1,309(371) (1,940)
Provisionfor income tax........................................... $26,206 $7,621 $15,235
The differencesbetween the U.S. federal statutory tax rate and our effective tax rate, expressed as a
percentage of incomebefore income taxes and minority interest, were as follows:
Fiscal Year Ended
March 31,
200720062005
U.S. federal statutorytaxrate........................................... 35.0%35.0% 35.0%
State taxes, net of federal benefit and research and development credits ...... 0.2(2.5) (2.3)
Research anddevelopmentcredits....................................... (4.3) (5.4) (7.9)
Tax exempt interest income ............................................. (2.9) (5.1) (1.1)
Stock-basedcompensation.............................................. 2.0——
Rate differencesinforeigntaxes andother................................ (1.2) (2.9) (3.9)
Effectivetax rate .................................................... 28.8%19.1% 19.8%