TCF Bank 2015 Annual Report Download - page 95

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80
Note 12. Income Taxes
The following table summarizes applicable income taxes in the Consolidated Statements of Income.
(In thousands) Current Deferred Total
Year ended December 31, 2015:
Federal $ 73,579 $16,141 $89,720
State 9,255 4,637 13,892
Foreign 5,252 8 5,260
Total $ 88,086 $20,786 $108,872
Year ended December 31, 2014:
Federal $ 55,062 $26,308 $81,370
State 2,087 11,147 13,234
Foreign 5,185 (23)5,162
Total $ 62,334 $37,432 $99,766
Year ended December 31, 2013:
Federal $ (38,206) $ 107,630 $69,424
State 7,686 3,941 11,627
Foreign 3,939 (645)3,294
Total $ (26,581) $ 110,926 $84,345
TCF's effective income tax rate differed from the statutory federal income tax rate of 35.00% as a result of the following.
Year Ended December 31,
2015 2014 2013
Federal income tax rate 35.00%35.00%35.00%
Increase (decrease) resulting from:
State income tax, net of federal income tax 2.87 3.06 3.11
Non-controlling interest tax effect (0.97) (0.92)(1.01)
Tax exempt income (0.93) (0.76)(0.86)
Foreign tax effects (0.53) (0.58)(1.13)
Other, net (0.84) (0.34)(0.41)
Effective income tax rate 34.60%35.46%34.70%
Beginning in the second quarter of 2013, TCF considered its undistributed foreign earnings to be reinvested indefinitely.
As a result, TCF recorded a $1.2 million benefit in 2013 to eliminate U.S. deferred taxes on its undistributed foreign
earnings. This position is based on management's determination that cash held in TCF's foreign jurisdictions is not
needed to fund its U.S. operations and that it either has reinvested or has intentions to reinvest these earnings. While
management currently intends to indefinitely reinvest all of TCF's foreign earnings, should circumstances or tax laws
change, TCF may need to record additional income tax expense in the period in which such determination or tax law
change occurs. As of December 31, 2015 and 2014, TCF has not provided U.S. deferred taxes on $42.9 million and
$48.1 million, respectively, of its undistributed foreign earnings. If these undistributed earnings were repatriated to the
U.S. or otherwise became subject to U.S. taxation, the potential deferred tax liability would be approximately $2.6 million
and $4.0 million, as of December 31, 2015 and 2014, respectively, assuming full utilization of related foreign tax credits.