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Income Taxes | 6 Months Ended
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Jun. 30, 2016
Income Taxes [Abstract] |
Income Taxes |
Note 8 – Income Taxes
Income tax expense consists of the following:
| Six Months Ended
| June 30,
(in thousands) |  | 2016 |  |  | 2015
Federal – current | $ | 9 |  | $ | 320
Foreign – current |  | 3,186 |  |  | 3,321
State – current |  | 235 |  |  | 192
Deferred |  | 2,649 |  |  | 5,000
| $ | 6,079 |  | $ | 8,833
I ncome tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income tax primarily due to the mix of taxable income by taxing jurisdiction, the impact of tax incentives and tax holidays in foreign locations, and state income taxes (net of federal benefit). The Company considers earnings from foreign subsidiaries to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been made for these earni ngs. Upon distribution of foreign subsidiary earnings in the form of dividends or otherwise, such distributed earnings would be subject to U.S. income tax es and foreign withholding taxes, reduced by any applicable foreign tax credits. Determination of the amount of any u nrecognized deferred tax liability on these undistributed earnings is not practicable. The Company has been granted certain tax incentives, including tax holidays, for its subsidiaries in Malaysia and Thailand that will expire at various dates, unless extended or otherwise renegotiated, through 2025 in Malaysia and 2028 in Thailand, and are subject to certain conditions with which the Company expects to comply. The net impact of these tax incentives was to lower income tax expense for the six months ended June 30, 2016 and 2015 by approximately $2.0 million (appro ximately 0.04 per diluted share) and $4.6 million (approximately $0.09 per diluted share), respectively, as follows:
| Six Months Ended
| June 30,
(in thousands) |  | 2016 |  |  | 2015
China | $ | - |  | $ | 950
Malaysia |  | 707 |  |  | 1,109
Thailand |  | 1,337 |  |  | 2,515
| $ | 2,044 |  | $ | 4,574
The Company’s Chinese subsidiary had a tax incentive that expired in December 201 5 and expects to submit an application for a new tax incentive in Chin a during the second half of 2016. As of June 30, 2016, the total amount of the reserve for uncertain tax benefits including interest and penalties was $16.5 million. The reserve is classified as a current or long-term liability in the condensed consolidated balance sheet s based on the Company’s expe ctation of when the items will be settled. The amount of accrued potential interest and penalties, respectively, on unrecognized tax benefits included in the reserve as of June 30, 2016, was $1.7 million and $1.6 mi llion. No material changes affected the reserve during the six months ended June 30, 2016. Within the next 12 months, it is reasonably possible that the Company will reduce its reserve by approximately $8.3 million due to the lapse of statutes of limitations in certain jurisdictions. The Company and its subsidiaries in Brazil, China, Ireland, Luxembourg, Malaysia, Mexico, the Netherlands, Romania, Singapore, Thailand and the United States remain open to examination by the various local taxing authorities, in total or in part, for fiscal years 2004 to 201 5. During the course of such examinations, disputes may occur as to matters of fact or law. The Company has no ongoing Internal Revenue Service income tax audits. I n most tax jurisdictions, the passage of time without examination will result in the expiration of applicable statutes of limitations thereby precluding examination of the tax period(s) for which such statute of limitation has expired. The Company believes t hat it has adequately provided for its tax liabilities.

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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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