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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of the income tax (benefit) expense are as follows (in thousands):
| Year ended December 31,
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | (3,529 | ) |  | $ | 21,468 |  |  | $ | 15,225 |
State | 283 |  |  | 684 |  |  | 3,322 |
Foreign | 3,520 |  |  | 1,627 |  |  | 1,432 |
Total current | 274 |  |  | 23,779 |  |  | 19,979 |
Deferred: |  |  |  |  |
Federal | (7,756 | ) |  | 2,573 |  |  | 1,336 |
State | (173 | ) |  | (1,071 | ) |  | (543 | )
Foreign | 1 |  |  | — |  |  | — |
Total deferred | (7,928 | ) |  | 1,502 |  |  | 793 |
Income tax (benefit) expense | $ | (7,654 | ) |  | $ | 25,281 |  |  | $ | 20,772 |
The components of income (loss) before income taxes are as follows (in thousands):
| Year ended December 31,
| 2015 |  | 2014 |  | 2013
United States | $ | (26,982 | ) |  | $ | 78,884 |  |  | $ | 56,950 |
Foreign | 5,866 |  |  | — |  |  | — |
Income (loss) before taxes | $ | (21,116 | ) |  | $ | 78,884 |  |  | $ | 56,950 |
A reconciliation of the U.S. federal statutory tax rate to the effective income tax rate is as follows:
| Year ended December 31,
| 2015 |  | 2014 |  | 2013
Federal statutory tax (benefit) expense rate | (35.0 | )% |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit | 0.8 |  |  | 2.3 |  |  | 2.8 |
Non-U.S. income taxed at different rates | (1.9 | ) |  | — |  |  | — |
Return to accrual adjustments | (2.5 | ) |  | (0.9 | ) |  | 0.2 |
Change in valuation allowance | 1.3 |  |  | — |  |  | — |
Domestic production activities deduction | — |  |  | (2.5 | ) |  | (2.6 | )
Other | 1.1 |  |  | (1.9 | ) |  | 1.1 |
Effective income tax (benefit) expense rate | (36.2 | )% |  | 32.0 | % |  | 36.5 | %
Fluctuations in effective tax rates have historically been impacted by permanent tax differences with no associated income tax impact and changes in state apportionment factors, including the effect on state deferred tax assets and liabilities. Changes in the effective tax rate during 2015 also included the benefit of non-U.S. income taxed at lower rates, and the Company not qualifying for the domestic production activities deduction. The benefit of operating in foreign tax jurisdictions is primarily derived from operations in Canada. Deferred income taxes reflect the tax effect of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the value reported for income tax purposes, at the enacted tax rates expected to be in effect when the differences reverse. The components of deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2015 |  | 2014
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 15,210 |  |  | $ | 10,183 |
Allowance for doubtful accounts | 432 |  |  | 369 |
Inventory valuation reserves | 3,734 |  |  | 1,896 |
Equity compensation | 4,250 |  |  | 4,146 |
Goodwill | 6,869 |  |  | 8,963 |
Accrued compensation | 73 |  |  | 75 |
Foreign tax credit carryforward | 865 |  |  | — |
Other | 67 |  |  | 1 |
Total gross deferred tax assets | 31,500 |  |  | 25,633 |
Valuation allowance | (1,093 | ) |  | (809 | )
Total deferred tax assets, net | 30,407 |  |  | 24,824 |
Deferred tax liabilities: |  |  |
Property and equipment | (12,876 | ) |  | (12,066 | )
Intangible assets | (18,249 | ) |  | (18,786 | )
Convertible debt | (3,011 | ) |  | (4,126 | )
Prepaid insurance and other | (216 | ) |  | (225 | )
Total gross deferred tax liabilities | (34,352 | ) |  | (35,203 | )
Net deferred tax (liabilities) assets | $ | (3,945 | ) |  | $ | (10,379 | )
Deferred taxes are presented in the balance sheets as follows (in thousands):
| December 31,
| 2015 |  | 2014
Current deferred tax assets | $ | 2,649 |  |  | $ | 2,696 |
Non-current deferred tax assets | 17,229 |  |  | 12,907 |
Non-current deferred tax liabilities | (23,823 | ) |  | (25,982 | )
Net deferred tax (liabilities) assets | $ | (3,945 | ) |  | $ | (10,379 | )
During the year ended December 31, 2014, the Company recorded a final adjustment related to the acquisition of Florida Chemical that increased current deferred tax assets by $1.2 million (see Note 4). As of December 31, 2015, the Company had U.S. net operating loss carryforwards of $39.7 million, expiring in various amounts in 2028 through 2035. The ability to utilize net operating losses and other tax attributes could be subject to a significant limitation if the Company were to undergo an “ownership change” for purposes of Section 382 of the Tax Code. The Company’s corporate organizational structure requires the filing of two separate consolidated U.S. Federal income tax returns. Taxable income of one group (“Group A”) cannot be offset by tax attributes, including net operating losses of the other group (“Group B”). During the year ended December 31, 2015, the Company restructured its legal entities such that there will be only one U.S. tax filing group filing a single U.S. consolidated federal income tax return beginning in 2016. The Company considers all available evidence, both positive and negative, to determine whether a valuation allowance is necessary for deferred tax assets. The Company considers cumulative losses in recent years as significant negative evidence. The Company considers recent years to mean the current year plus the two preceding years. As of December 31, 2015, the Company maintains a valuation allowance of $1.1 million for deferred tax assets in certain state and foreign jurisdictions. The Company has not calculated U.S. taxes on unremitted earnings of certain non-U.S. subsidiaries due to the Company’s intent to reinvest the unremitted earnings of the non-U.S. subsidiaries. At December 31, 2015, the Company had approximately $5.9 million in unremitted earnings outside the U.S. which were not included for U.S. tax purposes. U.S. income tax liability would be incurred if these funds were remitted to the U.S. It is not practicable to estimate the amount of the deferred tax liability on such unremitted earnings. The Company has performed an evaluation and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the tax years which remain subject to examination by tax jurisdictions as of December 31, 2015 which are the years ended December 31, 2012 through December 31, 2015 for U.S. federal taxes and the years ended December 31, 2011 through December 31, 2015 for state tax jurisdictions. At December 31, 2015, the Company has no unrecognized tax benefits.

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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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