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INCOME TAXES | 9 Months Ended
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Sep. 30, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES |
15. | INCOME TAXES:
The Company is subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 17.9% and 154.9%, respectively, for the three and nine months ended September 30, 2015. The annual effective tax rate is estimated based on projected pre-tax income (loss) by legal entity and by tax jurisdiction for the full year. The Company's tax provision for interim periods is determined using the estimated annual effective tax rate, adjusted for discrete items arising in that quarter. The Company updates the estimate of the annual effective tax rate each quarter, and if the estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. The quarterly tax provision and the quarterly estimated annual effective tax rate are subject to revision caused by changes in the level and mix of income and losses by legal entity and by tax jurisdiction. In addition, the effective tax rate can be volatile when the amount of pretax income (loss) for the quarter and year-to-date approach break-even. The Company's year-to-date effective tax rate for 2015 exceeds the U.S. statutory rate primarily because of losses arising outside the United States at a subsidiary where the Company does not record a tax benefit. The foreign losses were primarily due to the inventory write-down for UDC Ireland Limited, which expects to incur a loss for 2015, and such loss was not tax benefited as UDC Ireland Limited has a history of losses resulting in a full valuation allowance. The effective tax rate in the future will depend on the level of and portion of profits earned within and outside the United States, and continued levels of valuation allowances. For the three and nine months ended September 30, 2015, income tax expense of $1.5 million and $9.6 million, respectively, was recorded primarily related to foreign tax withheld on royalty and license fees paid to the Company and federal income taxes. The effective tax rate of 17.9% for the three months ended September 30, 2015 was favorably impacted by a reduction in the year to date pretax loss for UDC Ireland Limited, and the corresponding reduction in the valuation reserve by $2.7 million. The effective tax rate of 154.9% for the nine months ended September 30, 2015 continues to reflect the exclusion of the year to date losses for UDC Ireland Limited, which impacts the tax provision by $6.6 million, or 106.8 percentage points of the effective tax rate. The effective income tax rate was 31.4% and 31.7%, respectively, for the three and nine months ended September 30, 2014. For the three and nine months ended September 30, 2014, an income tax expense of $2.0 million and $13.4 million, respectively, was recorded primarily related to foreign tax withheld on royalty and license fees paid to the Company and federal income taxes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the Company's ability to generate future taxable income to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credits. As part of its assessment management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. At this time there is no evidence to release the valuation allowances that relate to UDC Ireland, foreign tax credits and New Jersey research and development credits. The Company does not have any undistributed earnings from foreign subsidiaries due to the losses at the Company's foreign entities.

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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 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
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