the 2009 Annual Report (pdf) - PLX Technology

More documents

Recommendations

Info

12. Income Taxes The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2009 2008 2007 Federal: Current ………………………………………….… $ (120) $ 16 $ 187 Deferred…………………………………………. (160) - 414 (280) 16 601 St at e: Current ………………………………………….… 21 69 (101) Deferred…………………………………………. - - 33 21 69 (68) Foreign: Current ………………………………………….… 65 41 44 65 41 44 T ot al………………………………………….……… $ (194) $ 126 $ 577 The provision for income taxes differs from the amount of income taxes determined by applying the U.S. statutory federal income tax rate as follows (in thousands): Years Ended December 31, 2009 2008 2007 T ax expense (benefit) at t he U.S. st at ut ory rat e…………… $ (6,648) $ (19,741) $ 613 St at e t axes (net of federal benefit)…………………………… (798) (2,420) 47 Goodwill impairment ……………………………………….…… - 13,424 - Release of income t ax reserves……………………………… - - (115) Research and development credit…………………………… (1,125) (1,307) (112) T rue ups……………………………………….………………… 228 (65) 1,137 Change in valuat ion allowance………………………………… 6,436 10,123 (1,006) Fair value remeasurement of not e payable………………… 1,345 - - Ot her individually immat erial items………………………… 368 112 13 $ (194) $ 126 $ 577 During the year ended December 31, 2009, the Company’s deferred tax asset valuation allowance increased by $9.3 million. The Company’s deferred tax asset valuation allowance increased by $10.1 million in 2008 and decreased by $2.2 million in 2007. The increase from December 31, 2008 to December 31, 2009 relates to acquired assets currently unrealizable and the current year generated net operating loss. The increase from December 31, 2007 to December 31, 2008 primarily relates to the deferred tax assets generated for the building and land impairment charges that are currently non deductible for tax purposes. 60
Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): Years Ended December 31, 2009 2008 Deferred tax assets: Accrued expenses and reserves…………………………………… $ 2,667 $ 1,526 Net operat ing loss carryforwards………………………………… 11,302 2,764 Research and development credits………………………………… 11,870 10,321 Depreciat ion…………………………………….…………………… 5,844 6,345 Share-based compensat ion…………………………………….…… 3,634 2,753 Ot her…………………………………….…………………………… 131 166 Gross deferred tax assets: 35,448 23,875 Valuat ion Allowance…………………………………….……………… (33,192) (23,875) 2,256 - Deferred tax liabilities: Acquisition relat ed int angibles…………………………………… (2,256) - T ot al net deferred t ax asset s…………………………………….…… $ - $ - At December 31, 2009, the Company had federal and state net operating loss carryforwards of $29.5 million and $17.3 million, respectively. These carryforwards will expire at various dates beginning in 2012 through 2029, if not utilized. In addition, as of December 31, 2009, the Company had federal and state tax credit carryforwards of approximately $7.4 million and $11.3 million, respectively. The federal research and development credits will expire beginning in 2019 and the state credits will carryforward indefinitely. Approximately $2.6 million of the federal and $1.6 million of the state net operating loss carryforward relate to excess tax deductions from stock options which have not yet been realized. SFAS 123R prohibits recognition of a deferred income tax asset for excess tax benefits due to stock option exercises that have not yet been realized through a reduction in income tax payable. Utilization of the net operating loss and credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of net operating loss carryforwards before utilization. Utilization of $26.9 million and $2.0 million of federal and state net operating loss is subject to an annual limitation under the Internal Revenue Code of 1986, as amended, and similar state provisions. Utilization of $2.0 million of federal research and development credits and $4.8 million of state research and development credits are subject to an annual limitation under the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of the federal and state research and development credits before utilization. Due to operating losses incurred, the Company created a full valuation allowance as of December 2002 for deferred tax assets. As of December 2009, a valuation allowance continues to be recorded for the net deferred tax asset based on management’s assessment that the realization of deferred tax assets is uncertain due to the history of losses, the variability of operating results and the inability to conclude that it is more likely than not that sufficient taxable income would be generated in future periods to realize those deferred tax assets. The Company will maintain a full valuation allowance until sufficient positive evidence exists to support a reversal of the valuation allowance. Approximately $10.3 million of the valuation allowance relates to acquired tax benefits, which will result in an adjustment to tax expense, net of the related deferred liability on acquired intangibles when such benefits are realized. On January 1, 2007, the Company adopted the guidance related to the accounting for uncertainty in income taxes and as a result of the implementation, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. 61
Page 2 and 3:
To PLX Stakeholders: PLX is positio
Page 4 and 5:
UNITED STATES SECURITIES AND EXCHAN
Page 6 and 7:
PART I ITEM 1: BUSINESS Overview PL
Page 8 and 9:
The disks themselves have made the
Page 10 and 11:
ehaviors often exist. PLX has a ded
Page 12 and 13:
tools are more comprehensive than c
Page 14 and 15: Manufacturing We have adopted a "fa
Page 16 and 17: investment portfolio could be negat
Page 18 and 19: alternative technologies, capital s
Page 20 and 21: We record as expenses the costs rel
Page 22 and 23: that may be considered a change in
Page 24 and 25: Performance Graph COMPARISON OF 5 Y
Page 26 and 27: of I/O connectivity solutions for h
Page 28 and 29: Results of Operations Comparison of
Page 30 and 31: Years Ended December 31, 2009 2008
Page 32 and 33: Interest Income, Interest Expense a
Page 34 and 35: As of December 31, 2009, we had the
Page 36 and 37: management’s assessment that real
Page 38 and 39: Our independent registered public a
Page 40 and 41: PART IV ITEM 15: EXHIBITS AND FINAN
Page 42 and 43: The Board of Directors and Stockhol
Page 44 and 45: PLX TECHNOLOGY, INC. CONSOLIDATED B
Page 46 and 47: PLX TECHNOLOGY, INC. CONSOLIDATED S
Page 48 and 49: PLX TECHNOLOGY, INC. NOTES TO CONSO
Page 50 and 51: Long-lived Asset Impairment Long-li
Page 52 and 53: Comprehensive Income (Loss) The com
Page 54 and 55: These factors could change in the f
Page 56 and 57: 3. Net Income (Loss) Per Share The
Page 58 and 59: December 31, 2008 Amortized Unreali
Page 60 and 61: an amount equal to that excess. The
Page 62 and 63: Pro Forma Year Ended December 31 20
Page 66 and 67: A reconciliation of the beginning a
Page 68 and 69: Revenues by product type were as fo
Page 70 and 71: SIGNATURES Pursuant to the requirem
Page 72 and 73: EXHIBIT INDEX Exh i bi t Number Des
Page 74 and 75: EXHIBIT 23.1 PLX Technology, Inc. S
Page 76: EXHIBIT 31.2 CERTIFICATION PURSUANT
Page 79 and 80: THIS PAGE INTENTIONALLY LEFT BLANK
Page 81: PLX Technology, Inc. 870 W. Maude A
show all

the 2009 Annual Report (pdf) - PLX Technology

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?