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, 2016

Summary of (Loss) Income Before Income Taxes

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


	2016			2015
U.S (loss) income	$	(600	)	$	3,752
Non-U.S. income		236			237

(Loss) income before income taxes	$	(364	)	$	3,989

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):


	2016			2015
U.S Federal income tax benefit (expense)
Current	$	—		$	—
Deferred		157			(970	)

Total U.S. Federal income tax benefit (expense)		157			(970	)
State and local income tax (expense) benefit
Current		(58	)		(101	)
Deferred		83			(168	)

Total state and local income tax benefit (expense)		25			(269	)

Foreign income tax (expense) benefit
Current		(40	)		35

Total income tax benefit (expense)	$	142		$	(1,204	)

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:


	2016			2015
Income tax expense at the statutory rate		34.00	%		34.00	%
State and local income tax expense		9.16	%		5.81	%
Foreign income tax		(3.79	%)		(0.33	%)
Permanent differences		(38.40	%)		1.05	%
Research & Development Credits		37.81	%		(10.47	%)
Other adjustments		0.31	%		0.14	%

Effective income tax rate		39.09	%		30.20	%

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):


	2016			2015
Deferred Federal tax assets —
Bad debt reserves	$	1,710		$	1,612
Stock based compensation		668			636
Net operating loss		8,184			5,649
Accrued compensation		280			624
Alternative minimum tax credit		73			73
Inventories		69			52
Accrued rent		46			51
Goodwill and intangible assets		6,675			7,919
Research & Development Credits		534			418
Other Credits		5			3
Other		189			79

Total deferred Federal tax assets		18,433			17,116

Deferred Federal tax liabilities —
Depreciation and asset basis differences		(4,725	)		(3,358	)
Other		(157	)		(364	)

Total deferred Federal tax liabilities		(4,882	)		(3,722	)

Net deferred Federal tax assets		13,551			13,394
Net deferred state and local tax assets		1,560			1,477

Net deferred tax assets	$	15,111		$	14,871

Classification of Net Deferred Income Taxes

The classification of net deferred income taxes as of December 31, 2016 is summarized (in thousands):


	Current		Long-term			Total
Deferred tax assets	$	2,675	$	19,067		$	21,742
Deferred tax liabilities		—		(6,631	)		(6,631	)

Net deferred tax assets	$	2,675	$	12,436		$	15,111

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


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

Net deferred income taxes	$	2,743	$	12,128		$	14,871