Invacare 2012 Annual Report Download - page 116

INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
and a tax valuation allowance total of $90,430,000 for a net deferred income tax liability of $27,328,000 at
December 31, 2011. Significant components of deferred income tax assets and liabilities at December 31, 2012
and 2011 are as follows (in thousands):
2012 2011
Current deferred income tax assets (liabilities), net:
Loss carryforwards ............................................. $ 107 $ 2,017
Bad debt ..................................................... 7,296 8,585
Warranty .................................................... 4,929 4,591
State and local taxes ............................................ 2,761 2,687
Other accrued expenses and reserves ............................... 2,611 5,846
Inventory .................................................... 2,388 1,549
Compensation and benefits ...................................... 2,439 2,644
Product liability ............................................... 292 292
Basis difference, asset held for sale ................................ 17,320 —
Valuation allowance ............................................ (40,020) (23,374)
Other, net .................................................... (2,259) (3,217)
$ (2,136) $ 1,620
Long-term deferred income tax assets (liabilities), net:
Goodwill & intangibles ......................................... (23,752) (24,042)
Convertible debt ............................................... (810) (941)
Fixed assets .................................................. (14,078) (14,895)
Compensation and benefits ...................................... 15,915 14,388
Loss and credit carryforwards .................................... 48,747 43,603
Product liability ............................................... 3,812 4,236
State and local taxes ............................................ 11,608 10,734
Valuation allowance ............................................ (79,875) (67,056)
Other, net .................................................... 8,310 5,025
$ (30,123) $ (28,948)
Net Deferred Income Taxes ........................................ $ (32,259) $ (27,328)
The company recorded a valuation allowance for its domestic net deferred tax assets due to a domestic loss
recognized in each year from 2007 through 2012 and based upon near term domestic projections. For 2011, the
company had a domestic current tax return liability of $3,140,000 and for 2012 the company estimates a
domestic current tax return liability of approximately $0 and has recorded a deferred tax asset equal to these
amounts. In addition, during 2007 through 2012, the company also recorded valuation allowances for certain
foreign country net deferred tax assets where recent performance results in a three year cumulative loss and near
term projections do not warrant substantial positive evidence to overcome the past losses. The company made net
payments for income taxes of $10,837,000, $14,290,000, and $2,600,000 during the years ended December 31,
2012, 2011 and 2010, respectively.
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