XML 87 R13.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES For the years ended December 31, 2014, 2013 and 2012, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):
| 2014 |  | 2013 |  | 2012
Domestic | $ | 16,961 |  |  | $ | 5,435 |  |  | $ | 15,958 |
Foreign | 14,611 |  |  | 14,404 |  |  | 11,660 |
Total | $ | 31,572 |  |  | $ | 19,839 |  |  | $ | 27,618 |
The components of the provision for income taxes for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in thousands):
| 2014 |  | 2013 |  | 2012
Current expense (benefit): |  |  |  |  |  |  |  |
Federal | $ | 1,316 |  |  | $ | (747 | ) |  | $ | 5,350 |
State | 768 |  |  | 333 |  |  | 1,014 |
Foreign | 2,644 |  |  | 2,324 |  |  | 995 |
Total current expense | 4,728 |  |  | 1,910 |  |  | 7,359 |
Deferred expense (benefit): |  |  |  |  |  |  |  |
Federal | 4,078 |  |  | 1,089 |  |  | 871 |
State | (119 | ) |  | 278 |  |  | (343 | )
Foreign | (89 | ) |  | (8 | ) |  | 21 |
Total deferred expense | 3,870 |  |  | 1,359 |  |  | 549 |
Total income tax expense | $ | 8,598 |  |  | $ | 3,269 |  |  | $ | 7,908 |
The difference between the income tax expense reported and amounts computed by applying the statutory federal rate of 35.0% to pretax income for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in thousands):
| 2014 |  | 2013 |  | 2012
Computed federal income tax expense at statutory rate of 35% | $ | 11,050 |  |  | $ | 6,943 |  |  | $ | 9,667 |
State income taxes | 438 |  |  | 397 |  |  | 436 |
Tax credits | (888 | ) |  | (1,385 | ) |  | (779 | )
Production activity deduction | — |  |  | — |  |  | (388 | )
Foreign tax rate differential | (1,958 | ) |  | (2,374 | ) |  | (1,419 | )
Uncertain tax positions | (76 | ) |  | (520 | ) |  | (42 | )
Deferred compensation insurance assets | (81 | ) |  | (358 | ) |  | (155 | )
Other — including the effect of graduated rates | 113 |  |  | 566 |  |  | 588 |
Total income tax expense | $ | 8,598 |  |  | $ | 3,269 |  |  | $ | 7,908 |
Deferred income tax assets and liabilities at December 31, 2014 and 2013, consisted of the following temporary differences and carry-forward items (in thousands):
| 2014 |  | 2013
Deferred income tax assets: |  |  |  |
Allowance for uncollectible accounts receivable | $ | 366 |  |  | $ | 342 |
Accrued compensation expense | 5,492 |  |  | 5,001 |
Inventory differences | 2,401 |  |  | 2,317 |
Net operating loss carryforwards | 13,542 |  |  | 18,060 |
Deferred revenue | 87 |  |  | 280 |
Stock-based compensation expense | 2,479 |  |  | 2,704 |
Uncertain tax positions | 284 |  |  | 559 |
Federal research and development credit carryforward | 1,413 |  |  | 569 |
Foreign Tax Credits | 1,374 |  |  | — |
Other | 4,173 |  |  | 3,197 |
Total deferred income tax assets | 31,611 |  |  | 33,029 |
Deferred income tax liabilities: |  |  |  |  |
Prepaid expenses | (708 | ) |  | (751 | )
Property and equipment | (23,298 | ) |  | (21,893 | )
Intangible assets | (4,853 | ) |  | (3,837 | )
Other | (1,150 | ) |  | (1,295 | )
Total deferred income tax liabilities | (30,009 | ) |  | (27,776 | )
Valuation allowance | (1,603 | ) |  | (1,363 | )
Net deferred income tax assets (liabilities) | $ | (1 | ) |  | $ | 3,890 |
Reported as: |  |  |
Deferred income tax assets - Current | $ | 6,375 |  |  | $ | 5,638 |
Deferred income tax assets - Long-term | 9 |  |  | 800 |
Deferred income tax liabilities - Current | — |  |  | — |
Deferred income tax liabilities - Long-term | (6,385 | ) |  | (2,548 | )
Net deferred income tax assets (liabilities) | $ | (1 | ) |  | $ | 3,890 |
The long-term deferred income tax balances are not netted as they represent deferred amounts applicable to different taxing jurisdictions. Deferred income tax balances reflect the temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The valuation allowance is primarily related to state credit carryforwards and capital losses for which we believe it is more likely than not that the deferred tax assets will not be realized. The valuation allowance increased by approximately $240,000, $138,000, and $864,000 during the years ended December 31, 2014, 2013 and 2012, respectively. We have not provided U.S. deferred income taxes or foreign withholding taxes on the undistributed earnings of certain foreign subsidiaries that are intended to be reinvested indefinitely in operations outside the United States. It is not practical to estimate the amount of additional taxes that might be payable on such undistributed earnings. As of December 31, 2014 and 2013, we had U.S federal net operating loss carryforwards of approximately $38.7 million and $52.2 million, respectively. These net operating loss carryforwards, which expire at various dates through 2030, are subject to an annual limitation under Internal Revenue Code Section 382. We anticipate that we will utilize the net operating loss carryforwards over the next 12 years. We utilized a total of approximately $13.5 million and $3.8 million in U.S. federal net operating loss carryforwards during the year ended December 31, 2014 and 2013, respectively. As of December 31, 2014 and 2013, we had non-U.S. net operating loss carryforwards of approximately $53,000 and $125,000, respectively, which have no expiration date. Non-U.S. net operating loss carryforwards utilized during 2014 and 2013 were not material. We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes and recording the related assets and liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. In our opinion, we have made adequate provisions for income taxes for all years subject to audit. We are no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2011. In foreign jurisdictions, we are no longer subject to income tax examinations for years before 2008. Although we believe our estimates are reasonable, the final outcomes of these matters may be different from those which we have reflected in our historical income tax provisions and accruals. Such differences could have a material effect on our income tax provision and operating results in the period in which we make such determination. The total liability for unrecognized tax benefits at December 31, 2014, including interest and penalties, was approximately $1.9 million, of which approximately $1.6 million would favorably impact our effective tax rate if recognized. Approximately $563,000 of the total liability at December 31, 2014 was presented as a reduction to non-current deferred income tax assets on our consolidated balance sheet as of that date. The total liability for unrecognized tax benefits at December 31, 2013, including interest and penalties, was approximately $2.3 million, of which approximately $1.7 million would favorably impact our effective tax rate if recognized. Approximately $236,000 of the total liability at December 31, 2013 was presented as a reduction to non-current deferred income tax assets on our consolidated balance sheet as of that date. As of December 31, 2014 and 2013, we had accrued approximately $181,000 and $139,000 respectively, in total interest and penalties related to unrecognized tax benefits. We account for interest and penalties for unrecognized tax benefits as part of our income tax provision. During the year ended December 31, 2014, we added interest and penalties of approximately $42,000 to our liability for unrecognized tax benefits. During the years ended December 31, 2013 and 2012, we removed interest and penalties of approximately $22,000, and $215,000, respectively, from our liability for unrecognized tax benefits. The decrease in interest and penalties during 2012 was primarily related to an interest payment to the IRS in order to settle a withholding tax issue related to our acquisition of BioSphere. We anticipate the total liability for unrecognized tax benefits may be reduced, net of potential increases and decreases due to the expiration of statutes of limitation, by a range of approximately $400,000 to $800,000 within the next 12 months. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in thousands):
Tabular Roll-forward | 2014 |  | 2013 |  | 2012
Unrecognized tax benefits, opening balance | $ | 2,129 |  |  | $ | 2,776 |  |  | $ | 3,113 |
Gross increases in tax positions taken in a prior year | 142 |  |  | 107 |  |  | 83 |
Gross increases in tax positions taken in the current year | 309 |  |  | 236 |  |  | 260 |
Lapse of applicable statute of limitations | (844 | ) |  | (990 | ) |  | (680 | )
Unrecognized tax benefits, ending balance | $ | 1,736 |  |  | $ | 2,129 |  |  | $ | 2,776 |
The tabular roll-forward ending balance does not include interest and penalties related to unrecognized tax benefits.

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