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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

	At December 31,
	2014			2013
Current:
Deferred revenue	$	440		$	—
Prepaid expenses and accruals		95			135
Net operating loss and tax credit carryforwards		4,119			2,702

Total current deferred tax assets		4,654			2,837
Less valuation allowance—current		—			(375	)

Net current deferred tax assets		4,654			2,462

Non-current:
Deferred rent and lease incentives		3,412			2,017
Net operating loss and tax credit carryforwards		18,844			14,210
Property and equipment and intangible assets		(20,033	)		(10,193	)
Stock-based compensation expense		8,175			5,004
Convertible notes		(10,255	)		—
Other		422			(294	)

Total long-term deferred tax assets		565			10,744
Less valuation allowance—non-current		—			(2,377	)

Net long-term deferred tax assets		565			8,367

Total deferred tax assets	$	5,219		$	10,829

	Year ended December 31,
	2014			2013			2012
Tax provision, at U.S. federal statutory tax rate	$	7,878		$	1,942		$	1,043
State income tax, net of federal tax benefit		648			149			64
Effect of permanent items		552			581			414
Effect of return to provision adjustment		(127	)		(733	)		(81	)
Change in valuation allowance		(2,085	)		—			(620	)
Capital loss write-off due to carryforward period expiration		2,085			—			—
Effect of change in federal and state income tax rate		(54	)		—			691
Uncertain tax positions		138			1,016			1,105
Foreign income taxes		—			(328	)		(93	)
Effect of repatriation of foreign earnings		—			582			—
Research and development credits		(1,564	)		(1,246	)		—
Federal and state NOL adjustments, net of valuation allowance impact		745			—			—
Other		312			89			80

Income tax provision	$	8,528		$	2,052		$	2,603

	Year ended December 31,
	2014			2013			2012
Unrecognized tax benefits balance at beginning of year	$	2,058		$	1,097		$	364
Additions based on tax positions related to the current year		365			181			517
Additions based on tax positions related to prior years		142			1,045			474
Reductions for settlements with taxing authorities related to prior years		(261	)		(56	)		—
Reductions for lapses of statute of limitations		(212	)		(209	)		(258	)

Unrecognized tax benefits balance at end of year	$	2,092		$	2,058		$	1,097