Invacare 2014 Annual Report Download - page 105

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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-35
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):
2014 2013
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,833 $ 9,851
Additions to:
Positions taken during the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 942
Positions taken during a prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 55
Exchange rate impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 313
Deductions due to:
Exchange rate impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (362) —
Settlements with taxing authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(36)
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218)(292)
Balance at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,019 $ 10,833
The Company recognizes interest and penalties associated with uncertain tax positions in income tax expense. During 2014,
2013 and 2012 the (expense) benefit for interest and penalties was $(500,000), $(676,000) and $(3,309,000), respectively. The
Company had approximately $5,130,000 and $5,181,000 of accrued interest and penalties as of December 31, 2014 and 2013,
respectively.
Included in the balance of uncertain tax positions in Other Long-Term Obligations at the end of 2014 is an accrual of tax
$5,940,000 and interest $4,400,000 resulting from a foreign audit related to years before 2012.
The Company and its subsidiaries file income tax returns in the U.S. and certain foreign jurisdictions. The Company is
subject to U.S. federal income tax examinations for calendar years 2011 to 2014, and is subject to various U.S. state income tax
examinations for 2010 to 2014. With regards to foreign income tax jurisdictions, the Company is generally subject to examinations
for the periods 2008 to 2014.