Invacare 2013 Annual Report Download - page 106

INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-32
Significant components of deferred income tax assets and liabilities at December 31, 2013 and 2012 are as follows (in
thousands):
2013 2012
Current deferred income tax assets (liabilities), net:
Loss carryforwards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 107
Bad debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,931 7,280
Warranty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,104 4,929
State and local taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,787 2,761
Other accrued expenses and reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,939 2,575
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,702 2,331
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,688 2,439
Product liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 292
Valuation allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,300)(22,592)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 (2,258)
$(3,256) $ (2,136)
Long-term deferred income tax assets (liabilities), net: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill & intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,919)(25,894)
Convertible debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (659)(810)
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,115)(14,089)
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,967 22,388
Loss and credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,738 48,747
Product liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,562 3,812
State and local taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,039 11,608
Valuation allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (93,170)(77,722)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,030) 1,837
$(31,587) $ (30,123)
Net Deferred Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(34,843) $ (32,259)
The Company recorded a valuation allowance for its domestic net deferred tax assets due to a domestic loss recognized in
each year from 2007 through 2013 (except for discontinued gains). In addition, during 2007 through 2013, the Company also
recorded valuation allowances for certain foreign country net deferred tax assets where recent performance results in a three year
cumulative loss. The Company made net payments for income taxes of $6,349,000, $10,837,000, and $14,290,000 during the
years ended December 31, 2013, 2012 and 2011, respectively.
At December 31, 2013, the Company had foreign tax loss carryforwards of approximately $52,056,000 which are non-
expiring, of which $52,056,000 are offset by valuation allowances. At December 31, 2013, the Company also had $397,000,000
of domestic state and local tax loss carryforwards, of which $154,000,000 expire between 2014 and 2017, $162,000,000 expire
between 2018 and 2027 and $81,000,000 expire after 2027. The Company has domestic federal tax credit carryforwards of
$28,244,000 of which $4,080,000 expire between 2014 and 2018 and $23,017,000 expire between 2019 and 2022, $900,000 expire
in 2031 and $247,000 are indefinite.
As of December 31, 2013 and 2012, the Company had a liability for uncertain tax positions, excluding interest and penalties
of $10,343,000 and $9,401,000, respectively. The Company does not believe there will be a material change in its unrecognized
tax positions over the next twelve months.
The total liabilities associated with unrecognized tax benefits that, if recognized, would impact the effective tax rates were
$10,343,000 and $9,401,000 at December 31, 2013 and 2012, respectively.