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Note 13 - Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 13. Income Taxes The Company’s provision for income taxes consists of the following:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 38,161 |  |  | $ | 48,287 |  |  | $ | 34,170 |
State |  |  | 1,645 |  |  |  | 5,648 |  |  |  | 3,854 |
Foreign |  |  | 5,701 |  |  |  | 2,214 |  |  |  | 81 |
|  |  | 45,507 |  |  |  | 56,149 |  |  |  | 38,105 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 42,474 |  |  |  | 42,003 |  |  |  | 21,972 |
State |  |  | (3,134 | ) |  |  | 5,523 |  |  |  | 3,048 |
Foreign |  |  | (1,462 | ) |  |  | 167 |  |  |  | 25 |
|  |  | 37,878 |  |  |  | 47,693 |  |  |  | 25,045 |
Change in valuation allowance |  |  | 364 |  |  |  | 335 |  |  |  | (21 | )
Provision for income taxes |  | $ | 83,749 |  |  | $ | 104,177 |  |  | $ | 63,129 |
The Company has been notified by the Internal Revenue Service of an income tax audit for the 2012 tax year. To date, field work has not commenced. As of December 31, 2014, due to the carryforward of net operating losses and research and development credits, the Company is open to U.S. Federal and state income tax examinations for the tax years 2006 through 2014. In addition, the Company is subject to audit by various foreign taxing jurisdictions for the tax years 2009 through 2014. Significant components of deferred tax assets and liabilities are as follows:
|  | December 31, |
|  | 201 4 |  |  | 201 3 |
Deferred tax assets: |  |  |  |  |  |  |  |
Goodwill and intangible assets |  | $ | 23,624 |  |  | $ | 74,992 |
Accrued expenses |  |  | 18,191 |  |  |  | 24,263 |
Deferred revenue |  |  | 7,945 |  |  |  | 4,413 |
Inventories |  |  | 6,306 |  |  |  | 4,483 |
Pension obligations |  |  | 8,738 |  |  |  | 4,043 |
Stock-based compensation |  |  | 8,628 |  |  |  | 6,609 |
Operating loss and credit carryforwards |  |  | 10,047 |  |  |  | 976 |
Other |  |  | 4,299 |  |  |  | 2,089 |
Valuation allowance |  |  | (1,385 | ) |  |  | (1,021 | )
Total deferred tax assets |  |  | 86,393 |  |  |  | 120,847 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 18,535 |  |  |  | 15,163 |
Debt refinancing costs |  |  | 10,925 |  |  |  | 7,494 |
Prepaid expenses |  |  | 1,032 |  |  |  | 1,183 |
Total deferred tax liabilities |  |  | 30,492 |  |  |  | 23,840 |
Net deferred tax assets |  | $ | 55,901 |  |  | $ | 97,007 |
The net current and noncurrent components of deferred taxes included in the consolidated balance sheets are as follows:
|  | December 31, |
|  | 201 4 |  |  | 2013 |
Net current deferred tax assets |  | $ | 22,841 |  |  | $ | 26,869 |
Net long-term deferred tax assets |  |  | 47,894 |  |  |  | 86,125 |
Net long-term deferred tax liabilities |  |  | (13,449 | ) |  |  | (14,966 | )
Valuation allowance |  |  | (1,385 | ) |  |  | (1,021 | )
Net deferred tax assets |  | $ | 55,901 |  |  | $ | 97,007 |
The net long-term deferred tax liabilities and valuation allowance are included in other long-term liabilities and deferred income taxes (noncurrent), respectively, in the consolidated balance sheets as of December 31, 2014 and 2013. Generac Brazil, acquired as part of the Ottomotores acquisition, has generated net operating losses for multiple years as part of the start-up of the business. The realizability of the deferred tax assets associated with these net operating losses is uncertain so a valuation allowance was recorded in the opening balance sheet as of December 8, 2012 as well as at December 31, 2014 and 2013. At December 31, 2014, the Company had state research and development credit, and state manufacturing credit carryforwards of approximately $15,610 and $2,424, respectively, which expire between 2017 and 2029. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows:
|  | December 31, |
|  | 201 4 |
Unrecognized tax benefit, beginning of period |  | $ | - |
Increase in unrecognized tax benefit for positions taken in current period |  |  | 6,394 |
Unrecognized tax benefit, end of period |  | $ | 6,394 |
At December 31, 2013 and 2012, the Company had no reserves recorded for uncertain tax positions. The entire unrecognized tax benefit as of December 31, 2014, if recognized, would impact the effective tax rate. Interest and penalties are recorded as a component of income tax expense. As of December 31, 2014, total interest of approximately $86 and penalties of approximately $263 associated with net unrecognized tax benefits are included in the Company’s consolidated balance sheet. There were no interest or penalties related to income taxes that had been accrued or recognized as of and for the years ended December 31, 2013 and 2012. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending December 31, 2015. The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not provided for additional U.S. income taxes on approximately $9,139 of undistributed earnings of consolidated non-U.S. subsidiaries. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings. A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2014, 2013 and 2012 are as follows:
|  | Year E nded December 31, |
|  | 201 4 |  |  | 2013 |  |  | 201 2 |
U.S. statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State taxes |  |  | 3.1 |  |  |  | 3.7 |  |  |  | 4.1 |
Valuation allowance |  |  | 0.2 |  |  |  | 0.2 |  |  |  | - |
Research and development credits |  |  | (5.0 | ) |  |  | (0.6 | ) |  |  | (0.2 | )
Other |  |  | (0.9 | ) |  |  | (0.9 | ) |  |  | 1.5 |
Effective tax rate |  |  | 32.4 | % |  |  | 37.4 | % |  |  | 40.4 | %

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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