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, 2015

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


	2015 (Restated)		2014
U.S income	$	3,752	$	5,670
Non-U.S. income		237		540

Income before income taxes	$	3,989	$	6,210

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):


	2015 (Restated)			2014
U.S Federal income tax expense
Current	$	—		$	(26	)
Deferred		(970	)		(2,273	)

Total U.S. Federal income tax expense		(970	)		(2,299	)
State and local income tax expense
Current		(101	)		(68	)
Deferred		(168	)		(315	)

Total state and local income tax expense		(269	)		(383	)

Foreign income tax expense (benefit)
Current		35			(171	)

Total income tax expense	$	(1,204	)	$	(2,853	)

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:


	2015 (Restated)			2014
Income tax expense at the statutory rate		34.00	%		34.00	%
State and local income tax expense		5.81	%		4.06	%
Foreign income tax		(0.33	%)		2.86	%
Permanent differences		1.05	%		2.06	%
Research & Development Credits		(10.47	%)		0.00	%
Other adjustments		0.14	%		2.96	%

Effective income tax rate		30.20	%		45.94	%

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):


	2015 (Restated)			2014
Deferred Federal tax assets –
Bad debt reserves	$	1,612		$	1,618
Stock based compensation		636			383
Net operating loss		5,649			5,058
Accrued compensation		624			184
Alternative minimum tax credit		73			73
Inventories		52			44
Accrued rent		51			39
Goodwill and intangible assets		7,919			9,186
Research & Development Credits		418			—
Other Credits		3			—
Other		79			—

Total deferred Federal tax assets		17,116			16,585

Deferred Federal tax liabilities –
Depreciation and asset basis differences		(3,358	)		(2,221	)
Other		(364	)		—

Total deferred Federal tax liabilities		(3,722	)		(2,221	)

Net deferred Federal tax assets		13,394			14,364
Net deferred state and local tax assets		1,477			1,644

Net deferred tax assets	$	14,871		$	16,008

Classification of Net Deferred Income Taxes

The classification of net deferred income taxes as of December 31, 2015 is summarized (in thousands):


	Current		(Restated) Long-term			Total
Deferred tax assets	$	2,743	$	17,278		$	20,021
Deferred tax liabilities		—		(5,150	)		(5,150	)

Net deferred tax assets	$	2,743	$	12,128		$	14,871

The classification of net deferred tax assets as of December 31, 2014 is summarized (in thousands):


	Current		Long-term			Total
Deferred tax assets	$	2,252	$	17,339		$	19,591
Deferred tax liabilities		—		(3,583	)		(3,583	)

Net deferred income taxes	$	2,252	$	13,756		$	16,008