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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
14. Income Taxes
The following table presents the components of the income tax (provision) benefit from continuing operations for the years ended December 31,
2012, 2013 and 2014 :
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, 2012, 2013 and 2014 :
81
Year Ended December 31,
2012
2013
2014
(in thousands)
Current
Federal
(159
)
$
(115
)
$
4,470
State
1,383
1,807
954
Foreign
—
(
53
)
(89
)
Total Current
1,224
1,639
5,335
Deferred
Federal
(2,580
)
(199,454
)
(637
)
State
2,687
(13,416
)
9
Foreign
—
—
37
Total Deferred
107
(212,870
)
(591
)
Income tax (provision) benefit from continuing operations
1,331
$
(211,231
)
$
4,744
Year Ended December 31,
2012
2013
2014
(in thousands)
Federal income tax (provision) benefit at statutory rate (35%)
$
(3,013
)
$
113,972
$
26,990
State income taxes, net of federal benefit
(703
)
7,677
2,885
Non-deductible expenses
(280
)
(771
)
(732
)
Net change to valuation allowance
1,348
(266,561
)
(29,565
)
Change in state tax rate
1,985
4,725
241
Uncertain tax positions
1,893
1,434
5,140
Non-deductible goodwill
—
(
72,213
)
—
Other
101
506
(215
)
Income tax (provision) benefit from continuing operations
$
1,331
$
(211,231
)
$
4,744