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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-33
Income Taxes
Earnings (loss) from continuing operations before income taxes consist of the following (in thousands):
2014 2013 2012
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(104,776) $ (73,529) $ (30,886)
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,566 30,070 31,958
$(63,210) $ (43,459) $ 1,072
The Company has provided for income taxes (benefits) from continuing operations as follows (in thousands):
2014 2013 2012
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(7,105) $ (2,485) $ (11,031)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (63) 300 716
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,105 11,043 21,154
7,937 8,858 10,839
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 3,011 3,968
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,487)(994) 348
(2,387) 2,017 4,316
Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,550 $ 10,875 $ 15,155
Included in the 2014, 2013 and 2012 Federal current tax benefit is a benefit of $7,175,000, $3,455,000 and $9,230,000,
respectively, related to an intra-period allocation to continuing operations. A charge in an equal amount is in discontinued operations.
A reconciliation to the effective income tax rate from the federal statutory rate is as follows:
2014 2013 2012
Statutory federal income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35.0)% (35.0)% 35.0%
State and local income taxes, net of federal income tax benefit. . . . . . . . . . . . . . (0.1) 0.5 43.4
Tax credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.1) (22.8) (45.2)
Foreign taxes at less than the federal statutory rate (including tax holidays). . . . (10.7) (10.6) (322.9)
Federal and foreign valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.5 35.8 1,757.6
Non-deductible extinguishment and debt finance costs . . . . . . . . . . . . . . . . . . . . — — 6.4
Withholding taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.7 65.2
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.5 6.8
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3 54.6 (9.8)
Life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 (1.5) (60.2)
Foreign branch activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.8) (1.8) (78.0)
Uncertain tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.3 826.6
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.3) 3.3 (811.2)
8.8 % 25.0 % 1,413.7%
At December 31, 2014, total deferred tax assets were $137,511,000, total deferred tax liabilities were $33,778,000 and the
tax valuation allowance total was $133,912,000 for a net deferred income tax liability of $30,179,000 compared to total deferred
tax assets of $126,264,000, total deferred tax liabilities of $43,317,000 and a tax valuation allowance total of $117,790,000 for a
net deferred income tax liability of $34,843,000 at December 31, 2013.