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14. Income Taxes
United States and foreign income (loss) before taxes and details of the provision for income tax are as
follows (in thousands):
Fiscal Year Ended March 31,
2009 2008 2007
Income (loss) from continuing operations before income taxes and
minority interest:
United States ........................................ $(384,363) $(99,868) $60,955
Foreign ............................................ (2,868) 27,233 30,073
$(387,231) $(72,635) $91,028
Provision for income tax (benefit) expense:
Current
Federal ........................................... $ 1,734 $ (8,049) $ (518)
State ............................................ 90 (355) (12)
Foreign ........................................... 10,461 13,430 11,211
Total current ....................................... 12,285 5,026 10,681
Deferred
Federal ........................................... 24,674 (33,833) 6,905
State ............................................ 11,309 (6,310) (1,036)
Foreign ........................................... (1,637) (4,485) (519)
Total deferred ...................................... 34,346 (44,628) 5,350
Add back benefit (expense) recorded to stockholders’ equity:
Tax benefit related to stock option exercises .................. 536 3,921 8,866
Tax benefit (expense) related to unrealized (gain) loss on
investments ........................................ (941) (104) 1,309
Provision (benefit) for income tax ........................... $ 46,226 $(35,785) $26,206
The differences between the U.S. federal statutory tax rate and our effective tax rate, expressed as a
percentage of income (loss) before income taxes and minority interest, were as follows:
Fiscal Year Ended
March 31,
2009 2008 2007
U.S. federal statutory tax rate ................................... (35.0)% (35.0)% 35.0%
Impact of changes in unrecognized tax benefits ....................... (0.3) (6.4) —
State taxes, net of federal impact ................................. 1.9 (5.7) 0.2
Tax exempt interest income ..................................... (0.3) (3.3) (2.9)
Research and development credits ................................ (0.6) (3.2) (4.3)
Non-deductible stock-based compensation ........................... 0.2 2.8 2.0
Valuation Allowance .......................................... 36.5
Rate differences in foreign taxes and other .......................... 9.6 1.5 (1.2)
Effective tax rate ............................................. 12.0% (49.3)% 28.8%
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