RealPage, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes

The domestic and foreign components of income (loss) before provision for income taxes were as follows:



	Year Ended December 31,
	2013		2012		2011
	(in thousands)
Domestic	$	19,230	$	9,151	$	(926	)
Foreign	1,252		251		(515		)
Total	$	20,482	$	9,402	$	(1,441	)

(Benefit) Provision for Income Taxes

Our provision (benefit) for income taxes consisted of the following components:



	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Current:
Federal	$	—		$	—		$	—
State	1,886			1,568			225
Foreign	421			27			70
Total current taxes	2,307			1,595			295
Deferred:
Federal	(1,832		)	3,192			299
State	(619		)	(574		)	(626		)
Foreign	(66		)	6			(178		)
Total deferred taxes	(2,517		)	2,624			(505		)
Total income tax provision (benefit)	$	(210	)	$	4,219		$	(210	)

Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense

The reconciliation of our income tax expense (benefit) computed at the U.S. federal statutory tax rate to the actual income tax expense (benefit) is as follows:



	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Expense derived by applying the Federal income tax rate to income (loss) before taxes	$	7,169		$	3,291		$	(504	)
State income tax, net of federal benefit	607			445			146
Foreign income tax	(170		)	(55		)	215
Change in valuation allowance	(9,087		)	—			(660		)
Benefits of assets not previously recognized	—			—			(97		)
Nondeductible expenses	644			612			674
Fair value adjustment on stock acquisition	487			(251		)	—
Stock-based compensation	139			171			137
Tax credits	—			—			53
Changes in tax rates	—			—			(138		)
Other	1			6			(36		)
	$	(210	)	$	4,219		$	(210	)

Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:



	December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Reserves, deferred revenue and accrued liabilities	$	6,303		$	7,215
Stock-based compensation	10,873			7,401
Net operating loss carryforwards	16,106			23,139
Total gross deferred tax assets	33,282			37,755
Deferred tax asset valuation allowance	(43		)	(9,216		)
Total deferred tax assets	33,239			28,539
Deferred tax liabilities:
Property, equipment and software	(5,408		)	(3,820		)
Other	(2,055		)	(1,711		)
Intangible assets	(23,871		)	(23,020		)
Total deferred tax liabilities	(31,334		)	(28,551		)
Net deferred tax assets (liabilities)	$	1,905		$	(12	)