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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2016, 2015 and 2014 consists of the following:
| 2016 |  | 2015 |  | 2014
Current tax expense: |  |  |  |  |
Federal | $ | 312 |  |  | $ | 4,208 |  |  | $ | 2,256 |
State | 159 |  |  | 1,238 |  |  | 516 |
Foreign | 7,111 |  |  | 6,949 |  |  | 11,995 |
| 7,582 |  |  | 12,395 |  |  | 14,767 |
Deferred income tax expense (benefit) | (2,871 | ) |  | 2,251 |  |  | (284 | )
Provision for income taxes | $ | 4,711 |  |  | $ | 14,646 |  |  | $ | 14,483 |
A reconciliation between income taxes computed at the statutory federal rate and the provision for income taxes for the years ended December 31, 2016, 2015 and 2014 follows:
| 2016 |  | 2015 |  | 2014
Tax provision at statutory rate based on income before income taxes | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Foreign income taxes | (6.8 | ) |  | (3.6 | ) |  | (4.8 | )
Federal research credit | (5.6 | ) |  | (2.0 | ) |  | (2.1 | )
Settlement of taxing authority examinations | (3.5 | ) |  | (0.6 | ) |  | (3.7 | )
European permanent deduction | (3.4 | ) |  | (2.1 | ) |  | (3.8 | )
Non deductible/non-taxable items | 7.2 |  |  | 1.8 |  |  | 1.8 |
State income taxes, net of federal tax benefit | 1.7 |  |  | 3.2 |  |  | 1.7 |
Impact of repatriation of foreign earnings | — |  |  | 2.5 |  |  | — |
New York State corporate tax reform | — |  |  | — |  |  | 5.5 |
Stock-based compensation | — |  |  | — |  |  | (0.2 | )
Other, net | (0.3 | ) |  | (1.8 | ) |  | 1.6 |
| 24.3 | % |  | 32.4 | % |  | 31.0 | %
The tax effects of the significant temporary differences which comprise the deferred income tax assets and liabilities at December 31, 2016 and 2015 are as follows:
| 2016 |  | 2015
Assets: |  |  |
Inventory | $ | 3,769 |  |  | $ | 3,938 |
Net operating losses | 34,669 |  |  | 6,421 |
Capitalized research and development | 6,257 |  |  | 5,733 |
Deferred compensation | 2,544 |  |  | 2,557 |
Accounts receivable | 3,186 |  |  | 2,938 |
Compensation and benefits | 6,645 |  |  | 7,365 |
Accrued pension | 4,530 |  |  | 3,944 |
Research and development credit | 8,164 |  |  | 7,094 |
Other | 2,001 |  |  | 3,245 |
Foreign tax credit | 1,112 |  |  | — |
Less: valuation allowances | (441 | ) |  | (124 | )
| 72,436 |  |  | 43,111 |
Liabilities: |  |  |  |
Goodwill and intangible assets | 168,509 |  |  | 122,623 |
Depreciation | 9,099 |  |  | 11,999 |
State taxes | 10,123 |  |  | 7,427 |
Contingent interest | 136 |  |  | 203 |
| 187,867 |  |  | 142,252 |
Net liability | $ | (115,431 | ) |  | $ | (99,141 | )
Income before income taxes consists of the following U.S. and foreign income:
| 2016 |  | 2015 |  | 2014
U.S. income | $ | (6,128 | ) |  | $ | 18,119 |  |  | $ | 12,374 |
Foreign income | 25,503 |  |  | 27,025 |  |  | 34,301 |
Total income | $ | 19,375 |  |  | $ | 45,144 |  |  | $ | 46,675 |
As of December 31, 2016, the amount of federal net operating loss carryforward was $99.3 million and begins to expire in 2026. As of December 31, 2016, the amount of federal research credit carryforward available was $8.1 million. These credits begin to expire in 2027. In New York State, corporate tax reform enacted in March 2014 changed the tax rate of a manufacturing company such as our Company to essentially 0%. Previously recorded New York State net deferred tax assets of $2.3 million, including $3.3 million of future tax benefits associated with state tax credits, have been written off as a non-cash charge to income tax expense. During the fourth quarter of 2015, the Company repatriated $9.3 million of 2015 foreign earnings and recorded a tax charge of $1.1 million. The repatriated earnings represented a portion of the 2015 earnings of certain foreign subsidiaries and affiliates and thus were not previously permanently reinvested. There has been no change in our longer term international plans as our intent to indefinitely reinvest the remaining foreign earnings accumulated through the year ended December 31, 2016 has not changed. U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. The amount of such temporary differences totaled $108.8 million as of December 31, 2016. It is not practicable given the complexities of the hypothetical foreign tax credit calculation to determine the tax liability on this temporary difference. The Company is subject to taxation in the United States and various states and foreign jurisdictions. Taxing authority examinations can involve complex issues and may require an extended period of time to resolve. Our federal income tax returns have been examined by the Internal Revenue Service (“IRS”) for calendar years ending through 2013. We recognize tax liabilities in accordance with the provisions for accounting for uncertainty in income taxes. Such guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The following table summarizes the activity related to our unrecognized tax benefits for the years ending December 31,:
| 2016 |  | 2015 |  | 2014
Balance as of January 1, | $ | 616 |  |  | $ | 581 |  |  | $ | 1,689 |
Increases for positions taken in prior periods | — |  |  | 100 |  |  | 45 |
Increases for positions taken in current periods | 1,584 |  |  | — |  |  | — |
Decreases in unrecorded tax positions related to settlement with the taxing authorities | (361 | ) |  | — |  |  | (1,073 | )
Decreases in unrecorded tax positions related to lapse of statute of limitations | — |  |  | (65 | ) |  | (80 | )
Balance as of December 31, | $ | 1,839 |  |  | $ | 616 |  |  | $ | 581 |
If the total unrecognized tax benefits of $1.8 million at December 31, 2016 were recognized, it would reduce our annual effective tax rate. The amount of interest accrued in 2016 related to these unrecognized tax benefits was not material and is included in the provision for income taxes in the consolidated statements of comprehensive income.

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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=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
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