LabCorp 2014 Annual Report Download - page 105

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F-26
Years Ended December 31,
2014 2013 2012
Current:
Federal $ 233.6 $ 231.6 $ 254.1
State 30.1 29.9 35.1
Foreign 22.7 22.5 16.9
$ 286.4 $ 284.0 $ 306.1
Deferred:
Federal $ 29.1 $ 55.2 $ 58.3
State 3.7 6.1 0.4
Foreign (5.1)(5.1)(5.4)
27.7 56.2 53.3
$ 314.1 $ 340.2 $ 359.4
A portion of the tax benefit associated with option exercises from stock plans reducing taxes currently payable are recorded
through additional paid-in capital. The benefits recorded through additional paid-in capital are approximately $5.9, $10.6 and $8.4
in 2014, 2013 and 2012, respectively.
The effective tax rates on earnings before income taxes are reconciled to statutory federal income tax rates as follows:
Years Ended December 31,
2014 2013 2012
Statutory federal rate 35.0% 35.0% 35.0%
State and local income taxes, net of federal income tax effect 2.7 2.6 2.4
Other 0.3 (0.4) 0.7
Effective rate 38.0% 37.2% 38.1%
The effective rate for 2014 was unfavorably impacted by the the recording of a full valuation allowance for the write down of
two of the Company's investments.
The effective rate for 2013 was favorably impacted by the release of the capital loss valuation allowance and recording two
years of the R&D tax credit. The American Taxpayer Relief Act of 2012 was enacted in early 2013 and reinstated the R&D tax
credit for 2012 and extended the credit for calendar year 2013.
The effective tax rate for 2012 was favorably impacted by a decrease in the reserve for unrecognized income tax benefits,
partially offset by an increase in tax as a result of the Company's increase in ownership percentage of its Ontario subsidiary.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities
are as follows:
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)