XML 83 R19.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Before Income Taxes Income before income taxes consists of the following:
| For the Year Ended December 31,
| 2014 |  | 2013 |  | 2012
United States | $ | 87,505 |  |  | $ | 67,355 |  |  | $ | 79,812 |
Foreign | 31,659 |  |  | 51,303 |  |  | 23,294 |
Income before income taxes | $ | 119,164 |  |  | $ | 118,658 |  |  | $ | 103,106 |
Provision Significant components of the provision for income taxes are as follows:
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |
Federal | $ | 22,608 |  |  | $ | 19,421 |  |  | $ | 28,076 |
State and local | 1,406 |  |  | 1,618 |  |  | 1,768 |
Foreign | 12,326 |  |  | 11,864 |  |  | 5,456 |
Total current | 36,340 |  |  | 32,903 |  |  | 35,300 |
Deferred: |  |  |  |  |
Federal | 3,135 |  |  | 21 |  |  | (3,477 | )
State and local | 180 |  |  | (364 | ) |  | (684 | )
Foreign | (3,563 | ) |  | (1,264 | ) |  | (357 | )
Total deferred | (248 | ) |  | (1,607 | ) |  | (4,518 | )
Total provision | $ | 36,092 |  |  | $ | 31,296 |  |  | $ | 30,782 |
Effective Tax Rate Reconciliation The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows:
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Income tax expense at U.S. federal statutory rate | $ | 41,708 |  |  | $ | 41,530 |  |  | $ | 36,087 |
State income taxes, net of federal tax benefit | 841 |  |  | 757 |  |  | 711 |
Foreign income, net of credit on foreign taxes | (245 | ) |  | 501 |  |  | 48 |
Effective tax rate differential of earnings outside of U.S. | (5,411 | ) |  | (8,257 | ) |  | (4,983 | )
Foreign investment tax credit | — |  |  | — |  |  | (406 | )
Research & experimentation credits | (1,150 | ) |  | (2,105 | ) |  | — |
Non-deductible items | 1,947 |  |  | 865 |  |  | 2,885 |
Change in uncertain tax positions | (52 | ) |  | (347 | ) |  | (394 | )
Domestic production activities deduction | (2,093 | ) |  | (2,237 | ) |  | (2,490 | )
Other items | 547 |  |  | 589 |  |  | (676 | )
Income tax expense | $ | 36,092 |  |  | $ | 31,296 |  |  | $ | 30,782 |
Deferred Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:
| December 31,
| 2014 |  | 2013
Deferred tax assets: |  |  |
Accruals and reserves | $ | 23,197 |  |  | $ | 25,478 |
Pensions | 6,161 |  |  | 2,536 |
Inventory | 5,176 |  |  | 4,350 |
Share-based compensation | 7,235 |  |  | 6,107 |
Tax credit carryforwards | 553 |  |  | — |
Foreign net operating loss carryforwards | 1,154 |  |  | 594 |
State net operating loss carryforward | 1,331 |  |  | 1,610 |
Other – net | 3,230 |  |  | 844 |
Total deferred tax assets before valuation allowance | 48,037 |  |  | 41,519 |
Valuation allowance | (1,982 | ) |  | (1,250 | )
Total deferred tax assets, net of valuation allowance | $ | 46,055 |  |  | $ | 40,269 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | 24,063 |  |  | $ | 17,248 |
Intangibles | 47,771 |  |  | 53,314 |
Convertible notes | 2,118 |  |  | 2,623 |
Total deferred tax liabilities | $ | 73,952 |  |  | $ | 73,185 |
Net deferred tax liabilities | $ | 27,897 |  |  | $ | 32,916 |
The net deferred tax liability is classified as follows: |  |  |
Deferred income taxes | $ | (17,248 | ) |  | $ | (14,675 | )
Other assets | (1,743 | ) |  | (125 | )
Long-term deferred tax liabilities | 46,888 |  |  | 47,716 |
Net deferred tax liabilities | $ | 27,897 |  |  | $ | 32,916 |
Federal, State and Local Net Operating Loss Carryforwards: As a result of the Company’s acquisition of SeQual in 2010, the Company has $15,955 of state net operating losses. California tax law will limit the use of these state net operating losses. The remaining state net operating losses expire between 2015 and 2031. In addition, the Company has state net operating losses in various other states which begin to expire in 2017. The gross deferred tax asset for the state net operating losses of $1,331 is partially offset by a valuation allowance of $1,068. Foreign Net Operating Loss Carryforwards: As of December 31, 2014, cumulative foreign operating losses of $4,237 generated by the Company were available to reduce future taxable income. Approximately $2,948 of these operating losses expire between 2019 and 2023. The remaining $1,289 can be carried forward indefinitely. The deferred tax asset for the foreign operating losses of $1,154 is partially offset by a valuation allowance of $459. Other Tax Information The Company has not provided for income taxes on approximately $203,420 of foreign subsidiaries’ undistributed earnings as of December 31, 2014, since the earnings retained have been reinvested indefinitely by the subsidiaries. It is not practicable to estimate the additional income taxes and applicable foreign withholding taxes that would be payable on the remittance of such undistributed earnings. Cash paid for income taxes during the years ended December 31, 2014, 2013 and 2012 was $31,208, $24,977 and $19,193, respectively. Unrecognized Income Tax Benefits The reconciliation of beginning to ending unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Unrecognized tax benefits at beginning of the year | $ | 941 |  |  | $ | 3,339 |  |  | $ | 2,440 |
Additions for tax positions of prior years | 358 |  |  | 299 |  |  | 1,921 |
Reductions for tax positions of prior years | (329 | ) |  | (1,921 | ) |  | — |
Reductions for settlements | — |  |  | — |  |  | (905 | )
Lapse of statutes of limitation | (22 | ) |  | (776 | ) |  | (117 | )
Unrecognized tax benefits at end of the year | $ | 948 |  |  | $ | 941 |  |  | $ | 3,339 |
Included in the balance of unrecognized tax benefits at December 31, 2014 and 2013 were $462 and $410, respectively, of income tax benefits which, if ultimately recognized, would impact the Company’s annual effective tax rate. The Company had accrued approximately $94 and $93 for the payment of interest and penalties at December 31, 2014 and 2013, respectively. The Company accrued approximately $1 and $42 during the years ended December 31, 2014 and 2012, respectively in additional interest associated with uncertain tax positions. The Company recorded a net benefit of $8 for interest expense during the year ended December 31, 2013 due to the filing of an amended tax return which offset the accrual of interest expense related to existing uncertain tax positions. The Company is subject to income taxes in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years prior to 2010. Due to the potential resolution of the federal examination and the expiration of various statutes of limitation, it is reasonably possible the Company’s unrecognized tax benefits at December 31, 2014 may decrease within the next twelve months by approximately $22.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration