Invacare 2011 Annual Report Download - page 103

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Income Taxes
Earnings (loss) before income taxes consist of the following (in thousands):
2011 2010 2009
Domestic ......................................................... $(6,910) $(16,115) $ (797)
Foreign .......................................................... 12,497 54,156 48,076
$ 5,587 $ 38,041 $47,279
The company has provided for income taxes (benefits) as follows (in thousands):
2011 2010 2009
Current:
Federal ....................................................... $ 3,244 $ 4,749 $ (8,310)
State ......................................................... 1,000 689 1,775
Foreign ....................................................... 13,008 9,729 10,850
17,252 15,167 4,315
Deferred:
Federal ....................................................... (3,474) (1,696) —
Foreign ....................................................... (4,078) (771) 1,785
(7,552) (2,467) 1,785
Income Taxes ...................................................... $ 9,700 $12,700 $ 6,100
Included in the 2009 Federal current tax benefit is a benefit of $7,750,000 resulting from the carryback of
the 2008 Federal domestic net operating loss as a result of the Worker, Homeownership and Business Assistance
Act of 2009, which became effective in November of 2009. The deferred tax asset previously recorded by the
company, related to the loss carryforward, was fully offset by a tax valuation allowance. A reconciliation to the
effective income tax rate from the federal statutory rate is as follows:
2011 2010 2009
Statutory federal income tax rate ....................................... 35.0% 35.0% 35.0%
State and local income taxes, net of federal income tax benefit ............... 11.6 1.2 2.4
Tax credits ........................................................ (22.1) (41.1) (146.4)
Foreign taxes at less than the federal statutory rate excluding valuation allowances . . (89.2) (24.4) (12.2)
Federal and foreign valuation allowance ................................. 0.7 4.6 13.3
Non-deductible extinguishment and debt finance costs ...................... 46.1 8.5 —
Withholding taxes .................................................. (0.6) (0.4) 2.4
Compensation ...................................................... 5.6 (0.3) 0.6
Dividends ......................................................... 47.0 54.8 129.3
Life insurance ...................................................... (12.2) (1.1) (1.0)
Foreign branch activity ............................................... (25.2) (3.4) (5.2)
Uncertain tax positions ............................................... 2.0 (1.7) (2.5)
Goodwill and intangible asset impairment (Asia/Pacific) .................... 252.7 — —
Foreign tax audit settlement ........................................... (88.6) — —
Other, net ......................................................... 10.8 1.7 (2.8)
173.6% 33.4% 12.9%
FS-31