Planar Systems (PLNR)

Provision for Income Taxes

Income tax expense recorded for the second quarter of fiscal 2009 was $0.6 million on pretax loss of $2.1 million, an effective negative tax rate of 31.2%. Comparatively, the income tax expense was $33 thousand on a pretax loss of $7.2 million in the second quarter of fiscal 2008, a negative effective tax rate of 0.5%. The tax provision of $1.2 million on pretax losses of $0.6 million for the six months ended March 27, 2009, consisted of tax provided on income generated in foreign jurisdictions. For the six months ended March 28, 2008 the tax of $0.4 million on pretax losses of $10.4 million was generated by tax in foreign jurisdictions as well as US deferred tax expense. The effective tax rates for the six months ended March 27, 2009 and March 28, 2008 were negative 185.0% and negative 3.6%, respectively. The difference between the effective tax rate and the federal statutory tax rate is due largely to the rules surrounding the valuation allowance provided on all U.S. and French deferred tax assets. During periods of time in which a valuation allowance is required for GAAP accounting purposes, the effective tax rate recorded will not represent the Company’s longer-term normalized tax rate in profitable times. Additionally, given the relationship between fixed dollar tax items and pre-tax financial results, the effective tax rate can change materially based on small variations of income.

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Provision for Income Taxes

Income tax expense recorded for the first quarter of fiscal 2009 was $0.5 million on pretax income of $1.4 million, an effective tax rate of 36.8%. Comparatively, the income tax expense was $0.3 million on a pretax loss of $3.2 million in the first quarter of fiscal 2008, a negative effective tax rate of 10.8%. The difference between the effective tax rate and the federal statutory tax rate is due largely to the rules surrounding the valuation allowance provided on all U.S. and French deferred tax assets. During periods of time in which a valuation allowance is required for GAAP accounting purposes, the effective tax rate recorded will not represent the Company’s longer-term normalized tax rate in profitable times. Additionally, given the relationship between fixed dollar tax items and pre-tax financial results, the effective tax rate can change materially based on small variations of income.

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Provision for Income Taxes

Income tax benefit recorded for the third quarter of fiscal 2008 was $0.1 million on pretax losses of $62.2 million, resulting in an effective tax rate of 0.2%, as compared to an income tax benefit of $1.9 million on pretax losses of $6.0 million in the third quarter of 2007, resulting in an effective tax rate of 31.5%. Income tax expense in the first nine months of 2008 was $0.2 million on pretax losses of $70.5 million, resulting in a negative 0.3% tax rate, as compared to an income tax benefit of $5.1 million on pretax losses of $14.4 million in the first nine months of 2007, resulting in an effective tax rate of 35.0%. The difference between the effective tax rate and the federal statutory rate is due largely to the rules surrounding the valuation allowance provided on all deferred tax assets. During periods of time in which a valuation allowance is required for GAAP accounting purposes, the effective tax rate recorded will not represent the Company’s longer-term, normalized tax rate in profitable times. Additionally, given the relationship between fixed dollar tax items and pre-tax financial results, the effective tax rate can change materially based on small variations of income.

Provision for Income Taxes

Income tax expense recorded for the second quarter of fiscal 2008 was $33 thousand on pretax losses of $5.2 million, resulting in a negative effective tax rate of 0.6%, as compared to an income tax benefit of $2.3 million on pretax losses of $6.2 million in the second quarter of 2007, resulting in an effective tax rate of 37.5%. Income tax expense in the first six months of 2008 was $0.4 million on pretax losses of $8.3 million, resulting in a negative 4.5% tax rate, as compared to an income tax benefit of $3.2 million on pretax losses of $8.4 million in the first six months of 2007, resulting in an effective tax rate of 37.5%. The difference between the effective tax rate and the federal statutory rate for the three and six months ended March 28, 2008 is due largely to the rules surrounding the valuation allowance provided on all deferred tax assets, including the net operating loss. In the three and six months ended March 30, 2007, the difference between the effective tax rate and the statutory rate resulted primarily from state income taxes. During periods of time in which a valuation allowance is required for GAAP accounting purposes, the effective tax rate recorded will not represent the Company’s longer-term, normalized tax rate in profitable times. Additionally, given the relationship between fixed dollar tax items and pre-tax financial results, the effective tax rate can change materially based on small variations of income.

Provision for Income Taxes

Income tax expense recorded for the first quarter of fiscal 2008 was $0.3 million on pretax losses of $3.1 million, a negative effective tax rate of 11%. Comparatively, the income tax benefit was $0.8 million on a pretax loss of $2.2 million in the first quarter of fiscal 2007, an effective tax rate of 38%. The difference between the effective tax rate and the federal statutory tax rate is due largely to the rules surrounding the valuation allowance provided on all U.S. and French deferred tax assets. During periods of time in which a valuation allowance is required for GAAP accounting purposes, the effective tax rate recorded will not represent the Company’s longer-term normalized tax rate in profitable times. Additionally, given the relationship between fixed dollar tax items and pre-tax financial results, the effective tax rate can change materially based on small variations of income.

Provision for Income Taxes

The Company’s effective tax rates for the quarter and nine months ended June 29, 2007 were approximately 31.5% and 35%, respectively which is a decrease from 43.7% and 37.5%, respectively in the three and nine months ended June 30, 2006. The difference between the effective tax rate and the federal statutory rate was primarily due to the mix of profits earned by the Company and its subsidiaries in tax jurisdictions where income tax rates are substantially different than the United States statutory tax rates and the effect of state income taxes.

Provision for Income Taxes

The Company’s effective tax rate for the quarter and six months ended March 30, 2007 was approximately 37.5%, which is an increase from the tax rate of 34% in the second quarter and six months ended March 31, 2006. The difference between the effective tax rate and the federal statutory rate was primarily due to the mix of profits earned by the Company and its subsidiaries in tax jurisdictions where income tax rates are substantially different than the United States statutory tax rates and the effect of state income taxes.

Provision for Income Taxes

The Company’s effective tax rate for the three months ended December 29, 2006 was 37.5%, compared to 34% for the same period in the prior year. The difference between the effective tax rate and the federal statutory tax rate is due to state income taxes and the effects of the Company’s foreign tax rates.

Provision for Income Taxes

The Company’s effective tax rate for the quarter and nine months ended June 30, 2006 was approximately 44% and 38% respectively, which is an increase from the tax rate of 30% and 27% in the third quarter and nine months ended July 1, 2005, respectively. The higher rate in 2006 is the result of estimated settlements related to the federal and state jurisdictions, and deemed distribution of income currently reportable in the U.S. from foreign subsidiaries, The lower rate in 2005 was caused by the effects of losses created by the charges related to impairment and restructuring causing a greater portion of the Company’s income to be from outside the United States in fiscal 2005. The difference between the effective tax rate and the federal statutory rate was primarily due to the mix of profits earned by the Company and its subsidiaries in tax jurisdictions where income tax rates are substantially different than the United States statutory tax rates and the effect of federal and state income taxes.

Provision for Income Taxes

The Company’s effective tax rate for the quarter and six months ended March 31, 2006 was approximately 34%, which is an increase from the tax rate of 28% in the second quarter and six months ended April 1, 2005. The lower rate in 2005 was caused by the effects of losses created by the charges related to impairment and restructuring, causing a greater portion of the Company’s income to be from outside the United States in fiscal 2005, which is not expected to recur in 2006. The difference between the effective tax rate and the federal statutory rate was primarily due to the mix of profits earned by the Company and its subsidiaries in tax jurisdictions where income tax rates are substantially different than the United States statutory tax rates and the effect of state income taxes.

Provision for Income Taxes

The Company’s effective tax rate for the first quarter of 2006 was 34%, which is consistent with the tax rate in the first quarter of 2005. The difference between the effective tax rate and the federal statutory tax rate is primarily due to state income taxes and the effects of the Company’s foreign tax rates

Provision for Income Taxes

The Company’s effective tax rate for the first quarter of 2006 was 34%, which is consistent with the tax rate in the first quarter of 2005. The difference between the effective tax rate and the federal statutory tax rate is primarily due to state income taxes and the effects of the Company’s foreign tax rates

Provision for Income Taxes

The Company’s effective tax rate for the quarter and nine months ended July 1, 2005 was approximately 30% and 27%, respectively, as compared to 33% for the nine months ended June 25, 2004. The decrease was caused by the effects of losses created by the charges related to impairment and restructuring, causing a greater portion of our income to be from outside the United States. The difference between the effective tax rate and the federal statutory rate was primarily due to the effects of losses created by the charges related to impairment and restructuring, state income taxes and the effects of the Company’s foreign tax rates.

Provision for Income Taxes

The Company’s effective tax rate for the quarter and six months ended April 1, 2005 was approximately 28%, which is a 7% decrease from the tax rate of 35% in the second quarter and six months ended March 26, 2004. The decrease was caused by the effects of losses created by the charges related to impairment and restructuring, causing a greater portion of our income to be from outside the United States. The difference between the effective tax rate and the federal statutory rate was primarily due to the effects of losses created by the charges related to impairment and restructuring, state income taxes and the effects of the Company’s foreign tax rates.

Provision for Income Taxes

The Company’s effective tax rate for the quarter ended December 31, 2004 was 34%, which is a 1% decrease from the tax rate of 35% in the first quarter of the prior year. The decrease was caused by a greater portion of our income coming from outside the United States. The difference between the effective tax rate and the federal statutory rate was primarily due to state income taxes and the effects of the Company’s foreign tax rates.