Huntington National Bank 2010 Annual Report Download - page 182

intend to vigorously defend them. It is possible the ultimate resolution of the proposed adjustments, if
unfavorable, may be material to the results of operations in the period it occurs. However, although no
assurance can be given, Management believes the resolution of these examinations will not, individually or in
the aggregate, have a material adverse impact on our consolidated financial position.
Huntington accounts for uncertainties in income taxes in accordance with ASC 740, Income Taxes. At
December 31, 2010, Huntington had gross unrecognized tax benefits of $49.5 million in income tax liability
related to tax positions. Due to the complexities of some of these uncertainties, the ultimate resolution may
result in a payment that is materially different from the current estimate of the tax liabilities. However, any
ultimate settlement is not expected to be material to the Consolidated Financial Statements as a whole.
Huntington does not anticipate the total amount of gross unrecognized tax benefits to significantly change
within the next 12 months.
The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized
tax benefits:
2010 2009
(Dollar amounts in thousands)
Unrecognized tax benefits at beginning of year ........................ $17,214 $—
Gross increases for tax positions taken during prior years ............... 32,292 10,750
Gross increases for tax positions taken during the current years .......... —6,464
Unrecognized tax benefits at end of year ............................. $49,506 $17,214
Any interest and penalties on income tax assessments or income tax refunds are recognized in the
Consolidated Statements of Income as a component of provision for income taxes. Huntington recognized
$2.2 million of interest for the year ended December 31, 2010. There were no significant amounts recognized
for interest and penalties for the years ended December 31, 2009 and 2008. Total interest accrued at
December 31, 2010 amounted to $2.2 million. All of the gross unrecognized tax benefits would impact the
Company’s effective tax rate if recognized.
The following is a summary of the provision (benefit) for income taxes:
2010 2009 2008
Year Ended December 31,
(Dollar amounts in thousands)
Current tax provision (benefit)
Federal ..................................... $ 40,675 $(326,659) $ (30,164)
State. . ..................................... 29,539 9,860 (102)
Total current tax provision (benefit) ................ 70,214 (316,799) (30,266)
Deferred tax provision (benefit)
Federal ..................................... (30,243) (267,872) (152,306)
State. . ..................................... (7) 667 370
Total deferred tax provision (benefit) ............... (30,250) (267,205) (151,936)
Provision (benefit) for income taxes ................ $ 39,964 $(584,004) $(182,202)
Tax benefits associated with securities transactions included in the above amounts were $0.1 million in
2010, $3.6 million in 2009, and $69.1 million in 2008.
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