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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 7 – Income Taxes Income from continuing operations before income taxes was generated in the following jurisdictions. For the year ended December 31, 2015, 2014, and 2013, domestic income excludes taxable intercompany dividend income of $10,000, $30,650, and $30,752, respectively.
|  | For the year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Domestic |  | $ | (5,007 | ) |  | $ | (3,294 | ) |  | $ | (2,024 | )
Foreign |  |  | 55,905 |  |  |  | 41,214 |  |  |  | 16,138 |
Total |  | $ | 50,898 |  |  | $ | 37,920 |  |  | $ | 14,114 |
The provision for income taxes consists of the following:
|  | For the year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 0 |  |  | $ | 0 |  |  | $ | 11 |
State |  |  | 1 |  |  |  | 42 |  |  |  | 22 |
Foreign |  |  | 9,140 |  |  |  | 4,688 |  |  |  | 3,121 |
Total current |  |  | 9,141 |  |  |  | 4,730 |  |  |  | 3,154 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 338 |  |  |  | (497 | ) |  |  | 338 |
State |  |  | (135 | ) |  |  | 361 |  |  |  | (289 | )
Foreign |  |  | (640 | ) |  |  | 715 |  |  |  | (56 | )
Total deferred |  |  | (437 | ) |  |  | 579 |  |  |  | (7 | )
Total |  | $ | 8,704 |  |  | $ | 5,309 |  |  | $ | 3,147 |
The U.S. federal corporate tax rate varies with taxable income. Our U.S. statutory rate for 2015 was 34%. For 2014, and 2013, our U.S. statutory rate was 35%. The differences between the income tax provisions computed using the statutory federal income tax rate and the provisions for income taxes reported in the consolidated statements of operations are as follows:
|  | For the years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Expected tax at statutory rate |  | $ | 17,305 |  |  | $ | 13,272 |  |  | $ | 4,940 |
Foreign taxes at other rates |  |  | (12,487 | ) |  |  | (9,107 | ) |  |  | (2,520 | )
US tax on foreign earnings, net of foreign tax credits |  |  | 1,968 |  |  |  | (9 | ) |  |  | 212 |
Valuation reserves on NOL carryforwards |  |  | 469 |  |  |  | 2 |  |  |  | 6 |
State income taxes, net of federal benefit |  |  | 26 |  |  |  | 140 |  |  |  | (310 | )
Disallowed expenses and other |  |  | 1,423 |  |  |  | 1,011 |  |  |  | 819 |
Total |  | $ | 8,704 |  |  | $ | 5,309 |  |  | $ | 3,147 |
Current deferred tax assets and long-term deferred tax liabilities are presented as separate line items in the balance sheet. Long-term deferred tax assets of $6,216 and $6,885 as of December 31, 2015 and 2014, respectively, are included in other assets, net of accumulated amortization. Current deferred tax liabilities as of December 31, 2015 and 2014 of $1,752 and $1,235, respectively, are included in other accrued expenses. Deferred income tax balances are comprised of the following:
|  | As of December 31, |
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
U.S. foreign tax credit |  | $ | 3,309 |  |  | $ | 5,516 |
Stock and long-term compensation plans |  |  | 2,817 |  |  |  | 1,693 |
Foreign NOL & other carryforwards |  |  | 13,771 |  |  |  | 2,629 |
US state NOL carryforwards |  |  | 248 |  |  |  | 263 |
US alternative minimum tax |  |  | 395 |  |  |  | 395 |
Deferred revenue |  |  | 672 |  |  |  | 752 |
Reserve for uncertain tax issues |  |  | (560 | ) |  |  | (560 | )
Amortization and depreciation |  |  | 627 |  |  |  | 434 |
US tax on unremitted foreign earnings |  |  | (137 | ) |  |  | (955 | )
Accrued expenses and other |  |  | 288 |  |  |  | 124 |
Total gross deferred tax assets |  |  | 21,430 |  |  |  | 10,291 |
Less: Valuation allowance |  |  | (13,719 | ) |  |  | (2,500 | )
Net deferred income tax assets |  | $ | 7,711 |  |  | $ | 7,791 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Swiss tax allowances |  | $ | 851 |  |  | $ | 1,235 |
Deferred revenue |  |  | 901 |  |  |  | 0 |
Intangible assets |  |  | 8,008 |  |  |  | 213 |
Deferred tax liabilities |  | $ | 9,760 |  |  | $ | 1,448 |
Current deferred tax assets and liabilities are netted by tax jurisdiction. Similarly, long-term deferred tax assets and liabilities are netted by tax jurisdiction. Earnings of certain subsidiaries are deemed available for distribution. At December 31, 2015 and 2014, unremitted foreign earnings available for distribution are $22,672, and $19,849, respectively. The deferred tax liability for the incremental U.S. tax to be paid upon remittance as dividends at December 31, 2015 and 2014 was $137 and $955, respectively. The earnings of certain designated subsidiaries remain permanently invested. At December 31, 2015 and 2014, total unremitted foreign earnings considered permanently invested are $131,327 and $83,122, respectively. It is not practicable to estimate the incremental U.S. tax liability which would be incurred if these earnings were repatriated. At December 31, 2015, we held $30,018 of cash in banks in the United States and $48,504 of cash in banks outside of the United States. Of the cash in banks outside of the United States, $45,520 is not subject to significant repatriation restrictions, but may be subject to tax upon repatriation. Cash in banks outside of the United States includes $29,335 held in tax jurisdictions where we consider retained earnings to be available for distribution and $19,169 held in jurisdictions where we consider retained earnings to be permanently invested. A portion of tax benefits related to certain restricted stock and stock options are credited to additional paid-in capital. For the years ended December 31, 2015, 2014, and 2013, credits to additional paid-in capital were $318, $253, and $3,318, respectively U.S. foreign tax credit carryforwards expiring in 2023 were $3,309 at December 31, 2015. We have not provided a valuation reserve for the foreign tax credits as we believe it is more likely than not they will be realized due to our tax strategy to distribute foreign earnings to utilize foreign tax credits prior to expiration. At December 31, 2015, we had foreign and state net operating loss (NOL) carryforwards and other foreign deductible carryforwards as shown in the following table;
|  | Carryforward |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration |
NOL Carryforward |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  | $ | 28,691 |  |  | $ | 7,379 |  |  | $ | (7,379 | ) |  |  | 2027-2035 |
Other foreign |  |  | 3,850 |  |  |  | 1,241 |  |  |  | (1,056 | ) |  |  | None |
U.S. states |  |  | 4,853 |  |  |  | 248 |  |  |  | (133 | ) |  |  | 2019-2027 |
|  |  | 37,394 |  |  |  | 8,868 |  |  |  | (8,568 | ) |  |  |  |
Other Carryforwards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | 21,682 |  |  |  | 4,184 |  |  |  | (4,184 | ) |  |  | None |
Other foreign |  |  | 2,846 |  |  |  | 967 |  |  |  | (967 | ) |  |  | 2016-2022 |
|  |  | 24,528 |  |  |  | 5,151 |  |  |  | (5,151 | ) |  |  |  |
|  | $ | 61,922 |  |  | $ | 14,019 |  |  | $ | (13,719 | ) |  |  |  |
The net change in the valuation allowance for the years ended December 31, 2015, 2014, and 2013, were increases of $11,219, $101, and $115, respectively. This valuation allowance is reviewed on a regular basis and adjustments made as appropriate. The increase in the valuation allowance in 2015 reflects NOL and other carryforwards related to the Silanis acquisition further described in Note 4. The change in the valuation allowance also reflects other factors including, but not limited to, changes in our assessment of our ability to use existing NOLs and other deduction carryforwards, changes in currency rates, and adjustments to reflect differences between the actual returns filed and the estimates we made at financial reporting dates. The company expects to generate adequate taxable income to realize deferred tax assets in foreign jurisdictions where no valuation allowance exists. We had no accrued interest or penalties for income tax liabilities at December 31, 2015. Our policy is to record interest expense and penalties on income taxes as income tax expense. ASC 740, Income Taxes sets a “more likely than not” criterion for recognizing the tax benefit of uncertain tax positions. We have identified one such exposure concerning cost allocations related to the implementation of our worldwide strategy related to the ownership of our intellectual property for which we had a reserve of $560 at December 31, 2015 and 2014. The reserve is an offset to our U.S. deferred tax asset. Our primary tax jurisdictions and the earliest tax year subject to audit are presented in the following table.
Australia |  |  | 2005 |
Austria |  |  | 2008 |
Belgium |  |  | 2008 |
Canada |  |  | 2011 |
Netherlands |  |  | 2009 |
Singapore |  |  | 2007 |
Switzerland |  |  | 2013 |
United States |  |  | 2005 |

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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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