Huntington National Bank 2013 Annual Report Download - page 162

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17. INCOME TAXES
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state, city, and foreign
jurisdictions. Federal income tax audits have been completed through 2009. In the first quarter of 2013, the IRS began an
examination of our 2010 and 2011 consolidated federal income tax returns. The Company has appealed certain proposed
adjustments resulting from the IRS examination of the 2006, 2007, 2008, 2009, and 2010 tax returns. Management believes the
tax positions taken related to such proposed adjustments were correct and supported by applicable statutes, regulations, and
judicial authority, and 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. Various state and other jurisdictions remain open to examination, including
Kentucky, Indiana, Michigan, Pennsylvania, West Virginia and Illinois.
Huntington accounts for uncertainties in income taxes in accordance with ASC 740, Income Taxes. At December 31, 2013,
Huntington had gross unrecognized tax benefits of $0.7 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. 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:
(dollar amounts in thousands) 2013 2012
Unrecognized tax benefits at beginning of year $ 6,246 $ 11,896
Gross decreases for tax positions taken during prior years (5,048) (5,650)
Settlements with taxing authorities (494) ---
Unrecognized tax benefits at end of year $ 704 $ 6,246
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, $0.2 million of interest benefit, $0.1 million of interest
benefit, and $0.1 million of interest expense for the years ended December 31, 2013, 2012 and 2011, respectively. Total interest
accrued was $0.1 million and $2.2 million at December 31, 2013 and 2012, respectively. 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:
Year Ended December 31,
(dollar amounts in thousands) 2013 2012 2011
Current tax provision (benefit)
Federal $ 114,096 $ 24,006 $ 10,468
State 4,278 6,966 (5,040)
Total current tax provision (benefit) 118,374 30,972 5,428
Deferred tax provision (benefit)
Federal 104,099 186,396 158,709
State (6,659) (33,273) 484
Total deferred tax provision (benefit) 97,440 153,123 159,193
Provision for income taxes $ 215,814 $ 184,095 $ 164,621