XML 39 R23.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes |
16) | Income Taxes
A reconciliation of the Company’s effective tax rate to the U.S. federal statutory rate is as follows:
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
U.S. Federal income tax statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Federal tax credits |  |  | (1.2 | ) |  |  | (1.0 | ) |  |  | (1.8 | )
State income taxes, net of federal benefit |  |  | 1.3 |  |  |  | 2.0 |  |  |  | 1.3 |
Effect of foreign operations taxed at various rates |  |  | (6.4 | ) |  |  | (7.3 | ) |  |  | 0.3 |
Qualified production activity tax benefit |  |  | (1.6 | ) |  |  | (1.8 | ) |  |  | (1.4 | )
Deferred tax asset valuation allowance |  |  | — |  |  |  | (0.5 | ) |  |  | (0.7 | )
Release of income tax reserves (including interest) |  |  | (4.8 | ) |  |  | (10.7 | ) |  |  | — |
Foreign dividends, net of foreign tax credits |  |  | 0.7 |  |  |  | (1.0 | ) |  |  | — |
Income tax charges on accumulated foreign earnings |  |  | — |  |  |  | — |  |  |  | 10.9 |
Tax benefit related to reinstatement of tax incentives |  |  | — |  |  |  | — |  |  |  | (4.0 | )
Other |  |  | 0.3 |  |  |  | 0.4 |  |  |  | 0.1 |
|  |  | 23.3 | % |  |  | 15.1 | % |  |  | 39.7 | %
The components of income from continuing operations before income taxes and the related provision for income taxes consist of the following:
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Income from continuing operations before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 90,401 |  |  | $ | 86,015 |  |  | $ | 29,546 |
Foreign |  |  | 69,067 |  |  |  | 50,378 |  |  |  | 29,755 |
|  | $ | 159,468 |  |  | $ | 136,393 |  |  | $ | 59,301 |
Current taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 15,813 |  |  | $ | 8,361 |  |  | $ | 11,338 |
State |  |  | 2,927 |  |  |  | 1,124 |  |  |  | 1,159 |
Foreign |  |  | 18,021 |  |  |  | 5,866 |  |  |  | 14,117 |
|  |  | 36,761 |  |  |  | 15,351 |  |  |  | 26,614 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  | (862 | ) |  |  | 8,908 |  |  |  | (1,730 | )
State and Foreign |  |  | 1,272 |  |  |  | (3,644 | ) |  |  | (1,359 | )
|  |  | 410 |  |  |  | 5,264 |  |  |  | (3,089 | )
Provision for income taxes |  | $ | 37,171 |  |  | $ | 20,615 |  |  | $ | 23,525 |
The significant components of the deferred tax assets and deferred tax liabilities are as follows:
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss carry-forwards and credits |  | $ | 8,531 |  |  | $ | 30,523 |
Inventory and warranty reserves |  |  | 15,404 |  |  |  | 15,015 |
Accounts receivable and other accruals |  |  | 2,343 |  |  |  | 2,885 |
Stock-based compensation |  |  | 3,713 |  |  |  | 3,255 |
Executive supplemental retirement benefits |  |  | 3,947 |  |  |  | 3,321 |
Other |  |  | — |  |  |  | 283 |
Total deferred tax assets |  | $ | 33,938 |  |  | $ | 55,282 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Acquired intangible assets |  |  | (9,434 | ) |  |  | (9,205 | )
Depreciation and amortization |  |  | (1,724 | ) |  |  | (2,609 | )
Other |  |  | (57 | ) |  |  | — |
Total deferred tax liabilities |  |  | (11,215 | ) |  |  | (11,814 | )
Valuation allowance |  |  | (6,127 | ) |  |  | (26,763 | )
Net deferred tax assets |  | $ | 16,596 |  |  | $ | 16,705 |
As of December 31, 2015, the Company had gross Massachusetts research and other tax credit carry-forwards of $8,933. These credit carry-forwards will expire at various dates through 2029. The Company also had gross net operating loss carry-forwards from various state and foreign jurisdictions of $7,784. Included in the total carry-forward are $5,000 of losses that can be carried forward indefinitely while the remaining losses of $2,784 begin to expire in 2021. Although the Company believes that its tax positions are consistent with applicable U.S. federal, state and international laws, it maintains certain tax reserves at December 31, 2015 in the event its tax positions were to be challenged by the applicable tax authority and additional tax assessed on audit. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Balance at beginning of year |  | $ | 19,610 |  |  | $ | 47,684 |  |  | $ | 40,674 |
Decreases for prior years |  |  | (26 | ) |  |  | (13 | ) |  |  | — |
Increases for the current year |  |  | 322 |  |  |  | 550 |  |  |  | 7,308 |
Reductions related to settlements with taxing authorities |  |  | (15,370 | ) |  |  | (18,235 | ) |  |  | — |
Reductions related to expiration of statute of limitations |  |  | (204 | ) |  |  | (10,376 | ) |  |  | (298 | )
Balance at end of year |  | $ | 4,332 |  |  | $ | 19,610 |  |  | $ | 47,684 |
As of December 31, 2015, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was $4,332. As of December 31, 2014, the total amount of gross unrecognized tax benefits, which excludes interest and penalties, was $19,610. The net decrease from December 31, 2014 was primarily attributable to current year releases in reserves for existing uncertain tax positions. At December 31, 2015, excluding interest and penalties, there are $4,326 of net unrecognized tax benefits that, if recognized, would impact the Company’s annual effective tax rate. In 2015, the Company recorded a net benefit to income tax expense of $7,304, excluding interest and penalties, due to the release of income tax reserves related to the effective settlement of a U.S. income tax audit. The Company accrues interest and, if applicable, penalties for any uncertain tax positions. Interest and penalties are classified as a component of income tax expense. At December 31, 2015, 2014 and 2013, the Company had accrued interest on unrecognized tax benefits of approximately $157, $578 and $2,159, respectively. Over the next 12 months it is reasonably possible that the Company may recognize approximately $923 of previously net unrecognized tax benefits, excluding interest and penalties, related to state and foreign tax positions as a result of the expiration of statutes of limitation. The Company is subject to examination by U.S. federal, state and foreign tax authorities. The United States Internal Revenue Service commenced an examination of our U.S. federal tax filings for tax years 2011 through 2013 during the quarter ended March 31, 2015. This audit was effectively settled in the fourth quarter upon the Company’s acceptance of the income tax examination changes. As part of the audit, the Company consented to extend the U.S. statute of limitations for tax year 2011 until September 30, 2016. The Company also effectively settled another U.S. federal income tax examination, for tax years 2007 through 2009, during the fourth quarter of 2014 upon receipt of an audit approval letter from the Joint Committee on Taxation. The statute of limitations for tax years 2007 through 2009 expired on December 31, 2015. The U.S. statute of limitations remains open for tax years 2011 through present. The statute of limitations for tax filings in other jurisdictions varies between fiscal years 2008 through present. On a quarterly basis, the Company evaluates both positive and negative evidence that affects the realizability of net deferred tax assets and assesses the need for a valuation allowance. The future benefit to be derived from its deferred tax assets is dependent upon its ability to generate sufficient future taxable income to realize the assets. During 2015, the Company decreased its valuation allowance by $20,636, primarily related the expiration of U.S. capital loss carry-forwards. During 2014, the Company decreased its valuation allowance by $339, primarily related to the effective settlement of a foreign tax audit. During 2013, the Company decreased its valuation allowance by $395, primarily related to the expiration of U.S. capital loss carry-forwards. Through December 31, 2015, the Company has not provided deferred income taxes on the undistributed earnings of its foreign subsidiaries because such earnings are intended to be permanently reinvested outside of the United States. Determination of the potential deferred income tax liability on these undistributed earnings is not practicable because such liability, if any, is dependent on circumstances existing and tax planning choices available when remittance occurs. At December 31, 2015, the Company had approximately $450,000 of undistributed earnings in its foreign subsidiaries which are considered to be indefinitely reinvested. The Company’s Israeli subsidiary elected to be treated under a preferential Israeli tax regime under which a reduced tax rate of 7% applied for 2013, increased to 9% for 2014, and remained 9% for 2015 for a portion of its taxable income. The Company’s other operations in Israel are also taxed at a preferential rate under the tax regime at 16%. The Company’s Israeli subsidiary effectively settled an examination for tax years 2009 through 2011 during the quarter ended March 31, 2014.

X
- References No definition available. + 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 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 2: 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 Reference 3: 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 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration