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EFTA01381343

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Form S-I Table of Contents Blue Buffalo Pet Products. Inc. Notes to Consolidated Financial Statements (('ontinued) A reconciliation of the federal statutory, rate to our effective rate is as follows: Ihcember 31, 2012 for the Iran tIldtd IkltIllbfr 31. 2013 December 31, 2014 Federal statutory• income tax rate 35.fP/o 35.0% 35.0% State income taxes, net of federal income tax benefit 4.2 2.2 2.1 Non-deductible expenses 0.4 0.3 0.3 Unrecognized tax benefits — (1.0) 1.3 Other (0.1) (0.5) (0.4) Total 39.5% 36.0% 38.3% The Company and its subsidiaries file income tax returns in the United States and in states and various local jurisdictions what the Company has nexus. Additionally as a result of new business activities in Canada, Mexico and Japan, foreign tax filings will be required but are not expected to be material to the 2014 tax provision. In the normal course of business, the Company is subject to examination by taxing authorities and as of December 31, 2014 and the date of this report, the Company's 2011 income tax return was being audited by the Internal Revenue Service ("IRS-). During 2013, the IRS completed its audit of 2010 with an immaterial assessment. There arc also various state tax examinations in progress primarily attributable to state nexus matters relating to prior year amended tax returns which have been considered in the Company's position for uncertain tax benefits. In general, tax years 2011 through 2014 arc subject to an examination for U.S. Federal and tax years 2010 through 2014 for some state and local taxing jurisdictions. As of December 31, 2012. there were no liabilities for income taxes associated with uncertain tax positions. As of December 31, 2013 and 2014, the liability for income taxes associated with uncertain tax positions was $2.7 million and $4.8 million, respectively. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits (which excludes fe

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