Comfort Inn 2013 Annual Report Download - page 98
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Table of Contents
Net deferred tax assets consisted of:
Property, equipment and intangible assets
$(8,553)
Accrued compensation
14,693
Accrued expenses
9,711
Foreign operations
186
Valuation allowance on foreign deferred tax assets
—
Foreign net operating losses
1,259
Valuation allowance on foreign net operating losses
(1,259)
Capital loss carryovers
484
Deferred tax asset on unrecognized tax positions
2,226
Other
807
Net deferred tax assets
$19,554
As of December 31, 2013, the Company had foreign net operating loss carryforwards of approximately $4.3 million before applying tax rates for the
respective jurisdictions. These foreign net operating loss carryforwards have an indefinite life, subject to a full valuation allowance. In addition, the
Company has recorded a valuation allowance on approximately $0.7 million of foreign deferred tax assets before applying the tax rate of the respective
jurisdiction.
Balance sheet presentation:
Current deferred tax assets
$ 4,136
Non-current net deferred tax assets
15,418
Net deferred tax assets
$19,554
The statutory United States federal income tax rate reconciles to the effective income tax rates as follows:
Statutory U.S. federal income tax rate
35.0 %
35.0 %
State income taxes, net of federal tax benefit
1.5 %
1.7 %
Benefits and taxes related to foreign operations
(8.7)%
(3.4)%
Unrecognized tax positions
0.1 %
(0.8)%
Adjustment to current and deferred taxes, prior years
— %
(0.9)%
Other
0.8 %
(1.5)%
Effective income tax rates
28.7 %
30.1 %
In 2013 and 2012, the effective income tax rates were 28.2% and 28.7%, respectively. The effective income tax rate for the year ended December 31,
2013 was lower than the United States federal statutory rate of 35% primarily due to the recurring impact of foreign operations, partially offset by state income
taxes, and reflects adjustments to our federal accruals. Additionally, the effective income tax rate was further reduced by the settlement of unrecognized tax
positions and legislation retroactively extending the U.S. controlled foreign corporation look-through rules. The effective income tax rate for the period ended
December 31, 2012 was lower than the United States federal statutory rate of 35% primarily due to the recurring impact
94