PLUG POWER INC - 10-K filing on 2017-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule Components of loss before income taxes and the provision for income taxes

The components of loss before income taxes and the income tax benefit for the years ended December 31, 2016, 2015 and 2014, by jurisdiction, are as follows (in thousands):


	2016						2015						2014
	U.S.		Foreign		Total		U.S.		Foreign		Total		U.S.		Foreign		Total
Loss before income taxes	$	(56,317)	$	(1,562)	$	(57,879)	$	(54,921)	$	(769)	$	(55,690)	$	(87,459)	$	(1,354)	$	(88,813)
Income tax benefit		—		392		392		—		—		—		—		325		325
Net loss attributable to the Company	$	(56,317)	$	(1,170)	$	(57,487)	$	(54,921)	$	(769)	$	(55,690)	$	(87,459)	$	(1,029)	$	(88,488)

Schedule of Components of Income Tax Expense (Benefit)

The significant components of deferred income tax (benefit) expense for the years ended December 31, 2016, 2015 and 2014, by jurisdiction, are as follows (in thousands):


	2016						2015						2014
	U.S.		Foreign		Total		U.S.		Foreign		Total		U.S.		Foreign		Total
Deferred tax (benefit) expense	$	(6,420)	$	(1,299)	$	(7,719)	$	(14,237)	$	893	$	(13,344)	$	(4,282)	$	194	$	(4,088)
Net operating loss carryforward (generated) expired		(16,727)		(2,827)		(19,554)		(8,345)		895		(7,450)		(8,974)		625		(8,349)
Valuation allowance increase (decrease)		23,147		4,126		27,273		22,582		(1,788)		20,794		13,256		(819)		12,437
Provision for income taxes	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate differed from the federal statutory rate as follows:


	2016		2015		2014
U.S. Federal statutory tax rate	(35.0)	%	(35.0)	%	(35.0)	%
Deferred state taxes, net of federal benefit	(3.1)	%	(3.1)	%	(1.2)	%
Common stock warrant liability	(2.6)	%	(2.3)	%	20.6	%
Foreign provision to return adjustments	(2.9)	%	—	%	—	%
Change in unrecognized tax benefits	(0.7)	%	—	%	(0.9)	%
Other, net	(1.6)	%	0.3	%	0.7	%
Change in valuation allowance	45.2	%	40.1	%	15.4	%
	(0.7)	%	0.0	%	(0.4)	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):


	U.S.				Foreign
	2016		2015		2016		2015
Intangible assets	$	—	$	—	$	1,614	$	1,469
Deferred revenue		8,713		7,017		—		—
Other reserves and accruals		1,703		6,411		—		—
Tax credit carryforwards		1,218		798		1,216		65
Property, plant and equipment		754		1,803		—		389
Amortization of stock-based compensation		17,167		13,145		—		—
Capitalized research & development expenditures		16,935		13,431		4,352		4,008
Net operating loss carryforwards		43,929		27,202		8,624		5,797
Total deferred tax asset		90,419		69,807		15,806		11,728
Valuation allowance		(85,731)		(62,584)		(15,646)		(11,520)
Net deferred tax assets	$	4,688	$	7,223	$	160	$	208
Intangible assets		(177)		(220)		—		—
Property, plant and equipment		—		—		(160)		(208)
Non-employee stock based compensation		(1,628)		(1,556)		—		—
Section 382 recognized built in loss		(2,883)		(5,447)		—		—
Net deferred tax liability	$	(4,688)	$	(7,223)	$	(160)	$	(208)
Net	$	—	$	—	$	—	$	—

Schedule of Valuation Allowance

A reconciliation of the current year change in valuation allowance is as follows (in thousands):


	U.S.		Foreign		Total
Increase in valuation allowance for current year increase in net operating losses	$	16,727	$	2,827	$	19,554
Increase in valuation allowance for current year net increase in deferred tax assets other than net operating losses		6,420		282		6,702
Increase in valuation allowance as a result of foreign currency fluctuation		—		235		235
Increase in valuation allowance due to change in tax rates		—		313		313
Increase in valuation allowance due to change in deferred tax assets related to unrecognized tax benefits		—		469		469
Net increase in valuation allowance	$	23,147	$	4,126	$	27,273

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2016		2015		2014
Unrecognized tax benefits balance at beginning of year	$	437	$	522	$	1,033
Reductions for tax positions of prior years		(469)		—		(465)
Currency translation		32		(85)		(46)
Unrecognized tax benefits balance at end of year	$	—	$	437	$	522