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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes |
11. | INCOME TAXES
Income tax provision (benefit) for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current income tax provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 18,722 |  |  | $ | 1,745 |  |  | $ | 303 |
State |  |  | 3,131 |  |  |  | 404 |  |  |  | 88 |
|  |  | 21,853 |  |  |  | 2,149 |  |  |  | 391 |
Deferred income tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 3,118 |  |  |  | (11,182 | ) |  |  | 510 |
State |  |  | 456 |  |  |  | (1,516 | ) |  |  | 108 |
|  |  | 3,574 |  |  |  | (12,698 | ) |  |  | 618 |
Total income tax provision (benefit) |  | $ | 25,427 |  |  | $ | (10,549 | ) |  | $ | 1,009 |
The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal statutory rate to income before taxes as a result of the following (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
U.S. federal statutory taxes |  | $ | 23,432 |  |  | $ | 8,417 |  |  | $ | 1,305 |
State and local taxes, net of U.S. federal benefit |  |  | 2,856 |  |  |  | 1,061 |  |  |  | (418 | )
Permanent items |  |  | (868 | ) |  |  | 225 |  |  |  | 198 |
Federal credits |  |  | (214 | ) |  |  | (566 | ) |  |  | (54 | )
Other |  |  | (43 | ) |  |  | 244 |  |  |  | 46 |
Increase (decrease) in valuation allowance |  |  | 264 |  |  |  | (19,930 | ) |  |  | (68 | )
Total income tax provision (benefit) |  | $ | 25,427 |  |  | $ | (10,549 | ) |  | $ | 1,009 |
Deferred tax assets and liabilities as of December 31, 2014 and 2013 consist of the following (in thousands):
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses |  | $ | 347 |  |  | $ | 483 |
Warranty reserve |  |  | 13,032 |  |  |  | 16,085 |
Stock-based compensation |  |  | 2,931 |  |  |  | 2,383 |
Accruals not currently deductible and other |  |  | 5,221 |  |  |  | 6,210 |
Inventories |  |  | 4,437 |  |  |  | 3,843 |
State tax credit carryforwards |  |  | 4,050 |  |  |  | 3,714 |
Gross deferred tax assets, before valuation allowance |  |  | 30,018 |  |  |  | 32,718 |
Valuation allowance |  |  | (4,465 | ) |  |  | (4,201 | )
Gross deferred tax assets, after valuation allowance |  |  | 25,553 |  |  |  | 28,517 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and other |  |  | (19,990 | ) |  |  | (19,380 | )
Gross deferred tax liabilities |  |  | (19,990 | ) |  |  | (19,380 | )
Net deferred tax asset |  | $ | 5,563 |  |  | $ | 9,137 |
The Company recognizes deferred tax assets and liabilities based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. In accordance with accounting standards, the Company assesses the likelihood that its deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance when, after considering all available positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. During 2013, the Company realized $9.1 million of deferred tax assets previously reserved under a valuation allowance. Additionally, as a result of all positive and negative evidence available as of December 31, 2013, the Company determined that it would realize the majority of its remaining deferred tax asset and, as a result, reversed the valuation allowance against all but a few specific items primarily related to state tax credits it estimates will expire before they are realized resulting in a tax benefit of $10.9 million. As of December 31, 2014, the Company continues to have a valuation allowance of $4.5 million against these deferred tax assets. The Company will analyze its position in subsequent reporting periods, considering all available positive and negative evidence, in determining the expected realization of its deferred tax assets. The Company recognizes excess tax benefits for stock-based awards as an increase to additional paid-in capital only when realized. The Company realized $12.9 million of excess tax benefits during 2014 and, accordingly, recorded an increase to additional paid-in capital. The Company has identified no uncertain tax positions and accordingly, has not recorded any unrecognized tax benefits or associated interest and penalties. The Company recognizes interest and penalties related to tax matters as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company has accrued a liability when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with accounting standards. As of December 31, 2014, federal tax years 2011 through 2013 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdictions as the Company does not have a taxable presence. During the year ended December 31, 2014, the Company’s returns filed with the state of Michigan for tax years 2008 through 2011 were examined. No material adjustments resulted from the audit. In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce, or improve tangible property. The regulations also include guidance regarding the retirement of depreciable property. The regulations are required to be effective in taxable years beginning on or after January 1, 2014. The Company assessed the impact of the final regulations on its financial statements and does not expect any material adjustments or changes.

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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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