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Table of Contents
VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
F-21 VONAGE ANNUAL REPORT 2014
As of December 31, 2014, we had NOLs for United States federal and state tax purposes of $639,981 and $214,238, respectively,
expiring at various times from years ending 2015 through 2033 as follows:
Federal State
2015 $ — $ 21,668
2016 — 6,015
2017 — 2,433
2018 — 2,866
2019 — 14
2020 — 356
2021 — 4,388
2022 — 18,408
2023 — 12,448
2024 — 1,374
2025 84,670 7,087
2026 190,275 12,914
2027 232,525 37,213
2028 29,166 13,253
2029 4,664 4,516
2030 96,056 45,830
2031 1,908 5,371
2032 — 7,769
2033 717 10,315
Total $ 639,981 $214,238
United States federal and state NOLs of $15,482 represent
excess tax benefits from the exercise of share based awards which will
be recorded in additional paid-in capital when realized. In addition, we
had NOLs for Canadian tax purposes of $4,458 expiring in 2027. We
also had NOLs for United Kingdom tax purposes of $44,853 with no
expiration date.
Under Section 382 of the Internal Revenue Code, if we
undergo an “ownership change” (generally defined as a greater than
50% change (by value) in our equity ownership over a three-year period),
our ability to use our pre-change of control NOLs and other pre-change
tax attributes against our post-change income may be limited. The
Section 382 limitation is applied annually so as to limit the use of our
pre-change NOLs to an amount that generally equals the value of our
stock immediately before the ownership change multiplied by a
designated federal long-term tax-exempt rate. At December 31, 2014,
there were no limitations on the use of our NOLs except for certain of
the NOLs of Vocalocity as of the date of acquisition.