Pitney Bowes 2014 Annual Report Download - page 87

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
77
The items accounting for the difference between income taxes computed at the federal statutory rate and our provision for income taxes
consist of the following:
Years Ended December 31,
2014 2013 2012
Federal statutory provision $ 150,920 $ 134,389 $ 179,119
State and local income taxes (1,379)(1,733) (2,071)
Other impact of foreign operations (12,668)(28,238) 23,025
Tax exempt income/reimbursement (1,327)(1,672) (1,992)
Federal income tax credits/incentives (17,905)(10,282) (8,918)
Unrealized stock compensation benefits 2,318 2,292 3,456
Resolution of U.S. tax examinations (5,856)(3,853) (47,380)
Impact of non-U.S. leveraged lease asset sales —— (30,367)
Outside basis differences —(13,214)—
Other, net (1,288)278 (585)
Provision for income taxes $ 112,815 $ 77,967 $ 114,287
Other impacts of foreign operations include income of foreign affiliates taxed at rates other than the 35% U.S. statutory rate, the accrual
or release of tax uncertainty amounts related to foreign operations, the tax impacts of foreign earnings repatriation and the U.S. foreign
tax credit impacts of other foreign income taxed in the U.S.
Deferred tax liabilities and assets at December 31, 2014 and 2013 consisted of the following:
December 31,
2014 2013
Deferred tax liabilities:
Depreciation $(60,282)$ (33,057)
Deferred profit (for tax purposes) on sale to finance subsidiary (114,633)(142,114)
Lease revenue and related depreciation (205,683)(249,998)
Amortizable intangibles (74,034)(79,852)
Other (64,900)(73,077)
Deferred tax liabilities (519,532)(578,098)
Deferred tax assets:
Nonpension postretirement benefits 82,181 99,628
Pension 141,492 43,301
Inventory and equipment capitalization 18,502 22,824
Restructuring charges 35,432 26,837
Long-term incentives 25,718 28,880
Net operating loss 102,686 143,839
Tax credit carry forwards 47,493 48,617
Tax uncertainties gross-up 22,851 35,298
Other 125,512 147,709
Valuation allowance (116,935)(122,780)
Deferred tax assets 484,932 474,153
Total deferred taxes, net $(34,600)$ (103,945)