XML 42 R27.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure | Income Taxes The Company's income (loss) before income taxes and income tax expense (benefit) from continuing operations, each by tax jurisdiction, consisted of the following (dollars in thousands):
|  | Year ended December 31,
|  | 2016 |  | 2015 |  | 2014
Income (loss) before income taxes: |  |  |  |  |  |
Domestic |  | $ | (69,850 | ) |  | $ | (3,150 | ) |  | $ | 67,300 |
Foreign |  | 11,620 |  |  | (18,970 | ) |  | 2,300 |
Total income (loss) before income taxes |  | $ | (58,230 | ) |  | $ | (22,120 | ) |  | $ | 69,600 |
Current income tax expense: |  |  |  |  |  |
Federal |  | $ | 7,560 |  |  | $ | 12,150 |  |  | $ | 24,630 |
State and local |  | 1,920 |  |  | 1,080 |  |  | 3,440 |
Foreign |  | 4,250 |  |  | 2,060 |  |  | 1,170 |
Total current income tax expense |  | 13,730 |  |  | 15,290 |  |  | 29,240 |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | (28,180 | ) |  | (1,980 | ) |  | (9,370 | )
State and local |  | (2,550 | ) |  | (1,530 | ) |  | (40 | )
Foreign |  | (1,430 | ) |  | (5,240 | ) |  | 2,880 |
Total deferred income tax expense |  | (32,160 | ) |  | (8,750 | ) |  | (6,530 | )
Income tax expense (benefit) |  | $ | (18,430 | ) |  | $ | 6,540 |  |  | $ | 22,710 |
The components of deferred taxes are as follows (dollars in thousands):
|  | December 31, 2016 |  | December 31, 2015
Deferred tax assets: |  |  |  |
Accounts receivable |  | $ | 780 |  |  | $ | 550 |
Inventories |  | 6,410 |  |  | 5,680 |
Goodwill and other intangible assets |  | 3,120 |  |  | — |
Accrued liabilities and other long-term liabilities |  | 26,110 |  |  | 27,550 |
Tax loss and credit carryforwards |  | 6,680 |  |  | 4,660 |
Gross deferred tax asset |  | 43,100 |  |  | 38,440 |
Valuation allowances |  | (5,670 | ) |  | (3,060 | )
Net deferred tax asset |  | 37,430 |  |  | 35,380 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (14,580 | ) |  | (16,340 | )
Goodwill and other intangible assets |  | — |  |  | (26,600 | )
Investment in foreign affiliates, including withholding tax |  | (1,140 | ) |  | (870 | )
Other, principally deferred income |  | (1,330 | ) |  | (2,580 | )
Gross deferred tax liability |  | (17,050 | ) |  | (46,390 | )
Net deferred tax asset (liability) |  | $ | 20,380 |  |  | $ | (11,010 | )
The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) from continuing operations before income taxes (dollars in thousands):
|  | Year ended December 31,
|  | 2016 |  | 2015 |  | 2014
U.S. federal statutory rate |  | 35 | % |  | 35 | % |  | 35 | %
Tax at U.S. federal statutory rate |  | $ | (20,380 | ) |  | $ | (7,740 | ) |  | $ | 24,360 |
State and local taxes, net of federal tax benefit |  | (550 | ) |  | (520 | ) |  | 2,520 |
Differences in statutory foreign tax rates |  | (1,930 | ) |  | 110 |  |  | (200 | )
Change in recognized tax benefits |  | (1,410 | ) |  | (460 | ) |  | (2,490 | )
Goodwill and other intangible assets impairment |  | 5,050 |  |  | 11,430 |  |  | — |
Nontaxable gains |  | (310 | ) |  | (980 | ) |  | — |
Research and manufacturing incentives |  | (830 | ) |  | (1,680 | ) |  | (1,920 | )
Tax on undistributed foreign earnings |  | 340 |  |  | 610 |  |  | 50 |
Net change in valuation allowance |  | 2,140 |  |  | 3,770 |  |  | 3,270 |
Other, net |  | (550 | ) |  | 2,000 |  |  | (2,880 | )
Income tax expense (benefit) |  | $ | (18,430 | ) |  | $ | 6,540 |  |  | $ | 22,710 |
The Company has recorded deferred tax assets on $43.3 million of various state operating loss carryforwards and $15.9 million of various foreign operating loss carryforwards. The majority of the state tax loss carryforwards expire between 2024 and 2027 and the majority of the foreign losses have indefinite carryforward periods. The Company has not made a provision for U.S. or additional foreign withholding taxes related to investments in foreign subsidiaries that are indefinitely reinvested since any excess of the amount for financial reporting over the tax basis in these investments is not significant as of December 31, 2016. Unrecognized tax benefits The Company has approximately $3.6 million and $4.6 million of unrecognized tax benefits ("UTBs") as of December 31, 2016 and 2015, respectively. If the unrecognized tax benefits were recognized, the impact to the Company's effective tax rate would be to reduce reported income tax expense for the years ended December 31, 2016 and 2015 approximately $3.0 million and $4.1 million, respectively. A reconciliation of the change in the UTBs and related accrued interest and penalties for the years ended December 31, 2016 and 2015 is as follows (dollars in thousands):
|  | Unrecognized Tax Benefits
Balance at December 31, 2014 |  | $ | 5,270 |
Tax positions related to current year: |  |
Additions |  | 240 |
Tax positions related to prior years: |  |
Additions |  | 1,570 |
Reductions |  | (360 | )
Settlements |  | (390 | )
Lapses in the statutes of limitations |  | (1,720 | )
Balance at December 31, 2015 |  | $ | 4,610 |
Tax positions related to current year: |  |
Additions |  | 120 |
Tax positions related to prior years: |  |  |
Additions |  | 80 |
Reductions |  | (10 | )
Settlements |  | — |
Lapses in the statutes of limitations |  | (1,230 | )
Balance at December 31, 2016 |  | $ | 3,570 |
In addition to the UTBs summarized above, the Company has recorded approximately $2.0 million and $2.2 million in potential interest and penalties associated with uncertain tax positions as of December 31, 2016 and 2015, respectively. The Company is subject to U.S. federal, state and local, and certain non-U.S. income tax examinations for tax years 2011 through 2015. In addition, there are currently several state examinations and one foreign income tax examination in process. The Company does not believe that the results of these examinations will have a significant impact on the Company's tax position or its effective tax rate. During 2016, the Company concluded the 2013 U.S. examination of one of its recently acquired businesses. This examination resulted in no impact to the Company's tax position or its effective tax rate. Management monitors changes in tax statutes and regulations and the issuance of judicial decisions to determine the potential impact to UTBs and is not aware of, nor does it anticipate, any material subsequent events that could have a significant impact on the Company's financial position during the next twelve months.

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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration