InfuSystem Holdings, Inc. Annual report pursuant to section 13 and 15(d)

Annual report pursuant to section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Income (Loss) Before Income Taxes

The following table summarizes income (loss) before income taxes for the years ended December 31 (in thousands):


	2013		2012
U.S income (loss)	$	2,281	$	(3,501	)
Non-U.S. income		419		1,349

Income (loss) before income taxes	$	2,700	$	(2,152	)

Summary of Components of Consolidated Provision for Income Taxes

The following table summarizes the components of the consolidated provision for income taxes for the years ended December 31 (in thousands):


	2013			2012
U.S Federal income tax benefit (expense)
Current	$	—		$	93
Deferred		(1,107	)		717

Total U.S. Federal income tax benefit (expense)		(1,107	)		810
State and local income tax benefit (expense)
Current		(3	)		18
Deferred		(73	)		191

Total state and local income tax benefit (expense)		(76	)		209

Foreign income tax benefit (expense)
Current		152			(356	)

Total income tax benefit (expense)	$	(1,031	)	$	663

Reconciliations of Effective Income Tax Rate to Federal Statutory Rate

The following table summarizes a reconciliation of the effective income tax rate to the U.S. federal statutory rate for the years ended December 31 as follows:


	2013			2012
Income tax expense at the statutory rate		34.00	%		34.00	%
State and local income tax expense		(0.35	%)		1.78	%
Foreign income tax		(2.88	%)		(10.23	%)
Permanent differences		2.85	%		(5.38	%)
Resolution of uncertain tax positions		0.00	%		11.15	%
Other adjustments		4.58	%		(0.48	%)

Effective income tax rate		38.20	%		30.84	%

Summary of Temporary Differences and Carryforwards that Gives Rise to Deferred Tax Assets and Liabilities

The following table summarizes the temporary differences and carryforwards that give rise to deferred tax assets and liabilities as of December 31 (in thousands):


	2013			2012
Deferred Federal income tax assets —
Bad debt reserves	$	1,635		$	1,075
Stock based compensation		736			635
Net operating loss		4,728			5,564
Accrued compensation		166			483
Alternative minimum tax credit		47			47
Inventories		77			70
Accrued rent		27			18
Goodwill and intangible assets		10,376			11,609
Other		44			14

Total deferred Federal income tax assets		17,836			19,515

Deferred Federal income tax liabilities —
Depreciation and asset basis differences		(1,199	)		(1,772	)

Total deferred Federal income tax liabilities		(1,199	)		(1,772	)

Net deferred Federal income tax asset		16,637			17,743
Net deferred state and local income tax asset		1,959			2,034

Net deferred income taxes	$	18,596		$	19,777

Classification of Net Deferred Income Taxes

The classification of net deferred income taxes as of December 31, 2013 is summarized as follows (in thousands):


	Current		Long-term			Total
Deferred tax assets	$	2,296	$	19,011		$	21,307
Deferred tax liabilities		—		(2,711	)		(2,711	)

Net deferred income taxes	$	2,296	$	16,300		$	18,596

The classification of net deferred income taxes as of December 31, 2012 is summarized as follows (in thousands):


	Current		Long-term			Total
Deferred tax assets	$	1,971	$	21,751		$	23,722
Deferred tax liabilities		—		(3,945	)		(3,945	)

Net deferred income taxes	$	1,971	$	17,806		$	19,777

Unrecognized Tax Benefits

The Company uses a recognition threshold and measurement attribute for the financial statement recognition of uncertain tax positions. The changes in unrecognized tax benefits were as follows for the years ended December 31:


	2013		2012
Beginning balance	$	—	$	240
Additions to prior year tax positions		—		—
Reductions to prior year tax positions		—		(109	)
Reductions for lapse in statute of limitations		—		(131	)

Ending balance	$	—	$	—