XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes from operations consisted of the following:
| Years Ended December 31,
(in thousands) | 2015 |  | 2014 |  | 2013
Current |  |  |  |  |  |  |  |
Federal | $ | 29,684 |  |  | $ | 25,178 |  |  | $ | 19,804 |
State | 5,001 |  |  | 4,391 |  |  | 3,243 |
Foreign | 3,568 |  |  | 4,041 |  |  | 3,926 |
Deferred |  |  |  |  |  |  |  |
Federal | 2,390 |  |  | 2,264 |  |  | 3,646 |
State | 753 |  |  | 142 |  |  | 404 |
Foreign | (605 | ) |  | (225 | ) |  | (430 | )
| $ | 40,791 |  |  | $ | 35,791 |  |  | $ | 30,593 |
Income and loss from operations before income taxes for the years ended December 31, 2015, 2014, and 2013, consisted of the following:
| Years Ended December 31,
(in thousands) | 2015 |  | 2014 |  | 2013
Domestic | $ | 106,381 |  |  | $ | 90,142 |  |  | $ | 74,912 |
Foreign | 2,298 |  |  | 9,180 |  |  | 6,652 |
| $ | 108,679 |  |  | $ | 99,322 |  |  | $ | 81,564 |
Reconciliations between the statutory federal income tax rates and the Company’s effective income tax rates as a percentage of income before income taxes for its operations were as follows:
| Years Ended December 31,
(in thousands) | 2015 |  | 2014 |  | 2013
Federal tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State taxes, net of federal benefit | 3.3 | % |  | 3.0 | % |  | 3.0 | %
Tax benefit of domestic manufacturing deduction | (2.3 | )% |  | (2.4 | )% |  | (2.2 | )%
Change in valuation allowance | 1.3 | % |  | 1.5 | % |  | 1.3 | %
Difference between United States statutory and foreign local tax rates | 0.2 | % |  | (0.4 | )% |  | 0.1 | %
Change in uncertain tax position | 0.3 | % |  | (0.8 | )% |  | (0.4 | )%
Other | (0.3 | )% |  | 0.1 | % |  | 0.7 | %
Effective income tax rate | 37.5 | % |  | 36.0 | % |  | 37.5 | %
The tax effects of the significant temporary differences that constitute the deferred tax assets and liabilities at December 31, 2015 and 2014, respectively, were as follows:
| December 31,
(in thousands) | 2015 |  | 2014
Current deferred tax assets (liabilities) |  |  |  |  |
State tax | $ | 1,762 |  |  | $ | 1,685 |
Workers’ compensation | 1,777 |  |  | 1,586 |
Health claims | 746 |  |  | 651 |
Vacation liability | 1,410 |  |  | 1,211 |
Allowance for doubtful accounts | 205 |  |  | 156 |
Inventories | 6,112 |  |  | 5,685 |
Sales incentive and advertising allowances | 963 |  |  | 757 |
Stock-based compensation | 3,422 |  |  | 3,197 |
Unrealized foreign exchange gain or loss | 247 |  |  | 102 |
Other, net | (441 | ) |  | (368 | )
| $ | 16,203 |  |  | $ | 14,662 |
Long-term deferred tax assets (liabilities) |  |  |  |  |
Depreciation | $ | (5,265 | ) |  | $ | (3,913 | )
Goodwill and other intangibles amortization | (11,835 | ) |  | (10,512 | )
Stock-based compensation | 2,207 |  |  | 3,315 |
Accrued pension liabilities | — |  |  | 1,276 |
Foreign tax credit carryforwards | 1,345 |  |  | — |
Uncertain tax positions’ unrecognized tax benefits | 134 |  |  | 623 |
Non-United States tax loss carry forward | 7,082 |  |  | 6,506 |
Tax effect on cumulative translation adjustment | (711 | ) |  | (789 | )
Other | 588 |  |  | 796 |
| (6,455 | ) |  | (2,698 | )
Less valuation allowances | (7,576 | ) |  | (6,754 | )
| $ | (14,031 | ) |  | $ | (9,452 | )
The total deferred tax assets as of December 31, 2015 and 2014, were $22.6 million and $22.0 million, respectively. The total deferred tax liabilities as of December 31, 2015 and 2014, were $20.5 million and $16.8 million, respectively. At December 31, 2015, the Company had $31.1 million of pre-tax loss carryforwards in various non-United States taxing jurisdictions, which includes approximately $5.9 million that were generated by the Company’s Beijing and Thailand subsidiaries that are in the process of liquidating. Tax loss carryforwards of $0.7 million, $1.6 million, $1.4 million, $2.3 million and $1.7 million will expire in 2016, 2017, 2018, 2019 and 2020, respectively, if not used. The remaining tax losses can be carried forward indefinitely. At December 31, 2015, and 2014, the Company had deferred tax valuation allowances of $7.6 million and $6.8 million, respectively. The valuation allowance increased $0.8 million and $1.3 million for the years ended December 31, 2015 and 2014, respectively. The Company does not provide for federal income taxes on the undistributed earnings of its international subsidiaries because such earnings are reinvested and, in the Company’s opinion, will continue to be reinvested indefinitely. At December 31, 2015, 2014 and 2013, the Company had not provided for federal income taxes on undistributed earnings of $51.6 million, $45.6 million and $34.8 million, respectively, from its international subsidiaries. Should these earnings be distributed in the form of dividends or otherwise, the Company would be subject to both United States income taxes and withholding taxes in various international jurisdictions. These taxes may be partially offset by United States foreign tax credits. Determination of the related amount of unrecognized deferred United States income taxes is not practicable because of the complexities associated with this hypothetical calculation. United States federal income taxes are provided on the earnings of the Company’s foreign branches, which are included in the United States federal income tax return. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in 2015, 2014 and 2013, respectively, was as follows, including foreign translation amounts:
Reconciliation of Unrecognized Tax Benefits | 2015 |  | 2014 |  | 2013
Balance at January 1 | $ | 1,307 |  |  | $ | 3,456 |  |  | $ | 3,843 |
Additions based on tax positions related to prior years | 310 |  |  | 7 |  |  | 297 |
Reductions based on tax positions related to prior years | (514 | ) |  | (1,146 | ) |  | (494 | )
Additions for tax positions of the current year | 191 |  |  | 165 |  |  | 837 |
Settlements | — |  |  | (680 | ) |  | (435 | )
Lapse of statute of limitations | (187 | ) |  | (495 | ) |  | (592 | )
Balance at December 31 | $ | 1,107 |  |  | $ | 1,307 |  |  | $ | 3,456 |
Included in the balance of unrecognized tax benefits at December 31, 2015, 2014 and 2013, are tax positions of $0.2 million, $0.0 million and $0.7 million, respectively, which, if recognized, would reduce the effective tax rate. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense, which is a continuation of the Company’s historical accounting policy. During the years ended December 31, 2015, 2014 and 2013, accrued interest decreased by $30 thousand, $0.2 million and $0.3 million, respectively, as a result of the reversal of accrued interest associated with the lapses of statutes of limitations. The Company had accrued $0.2 million both at December 31, 2015 and 2014, and $0.4 million at December 31, 2013, for the potential payment of interest, before income tax benefits. At December 31, 2015, the Company remained subject to United States federal income tax examinations for the tax years 2012 through 2015. In addition, the Company remained subject to state, local and foreign income tax examinations primarily for the tax years 2010 through 2015.

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