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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
15. Income Taxes
The following table presents the components of the income tax (provision) benefit from continuing operations for the years ended
December 31, 2011, 2012 and 2013 :
The following table summarizes the significant differences between the U.S. federal statutory tax rate and the Company's effective tax
rate for financial statement purposes for the years ended December 31, 2011, 2012 and 2013 :
90
Year Ended December 31,
2011
2012
2013
(in thousands)
Current
Federal
(1,491
)
$
(159
)
$
(115
)
State
(2,286
)
1,383
1,807
Foreign
—
—
(
53
)
Total Current
(3,777
)
1,224
1,639
Deferred
Federal
(19,476
)
(2,580
)
(199,454
)
State
1,522
2,687
(13,416
)
Total Deferred
(17,954
)
107
(212,870
)
Total income tax (provision) benefit from continuing operations
(21,731
)
$
1,331
$
(211,231
)
Year Ended December 31,
2011
2012
2013
(in thousands)
Federal income tax (provision) benefit at statutory rate (35%)
$
(20,719
)
$
(3,013
)
113,955
State income taxes, net of federal benefit
(2,197
)
(703
)
7,677
Non-deductible expenses
(220
)
(280
)
(771
)
Net change to valuation allowance
370
1,348
(266,561
)
Change in state tax rate
(185
)
1,985
4,725
Uncertain tax positions
1,220
1,893
1,434
Non-deductible goodwill
—
—
(
72,213
)
Other
—
101
523
Income tax (provision) benefit from continuing operations
$
(21,731
)
$
1,331
(211,231
)