• Filing Date: 2017-08-09
  • Form Type: 10-Q
  • Description: Quarterly report
3 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income tax benefit for the first quarter of fiscal 2018 was $1.2 million as compared to an income tax provision of $0.4 million for the first quarter of fiscal 2017. The tax benefit for the first quarter of fiscal 2018 included the release of $1.7 million of an uncertain tax position liability upon the effective settlement with the German taxing authorities for tax audits of our German subsidiary.
Income tax provisions for each of these periods reflect expenses for foreign income taxes and state taxes. We have provided a full valuation allowance against our U.S. net deferred tax assets due to our history of net losses, difficulty in predicting future results and our conclusion that we cannot rely on projections of future taxable income to realize the deferred tax assets. Significant management judgment is required in determining our deferred tax assets and liabilities and valuation allowances for purposes of assessing our ability to realize any future benefit from our net deferred tax assets. We intend to maintain this valuation allowance until sufficient positive evidence exists to support a reversal or decrease in this allowance. Future income tax expense will be reduced to the extent that we have sufficient positive evidence to support a reversal of, or decrease in, our valuation allowance.