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Note 16 - Income Taxes | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 16. Income Taxes Income Tax Expense The components of the Company’s income before income taxes and its provision for (benefit from) income taxes consist of the following:
|  | Years ended December 31,
|  | 2016 |  | 2015 |  | 2014
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 50,181 |  |  | $ | 48,608 |  |  | $ | 63,232 |
Foreign |  |  | 689 |  |  |  | (354 | ) |  |  | (1,727 | )
|  | $ | 50,870 |  |  | $ | 48,254 |  |  | $ | 61,505 |
|  | Years ended December 31,
|  | 2016 |  | 2015 |  | 2014
Provision for (benefit from) income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 14,982 |  |  | $ | 14,572 |  |  | $ | 18,301 |
State |  |  | 3,265 |  |  |  | 3,635 |  |  |  | 3,895 |
Foreign |  |  | 302 |  |  |  | 249 |  |  |  | 192 |
|  |  | 18,549 |  |  |  | 18,456 |  |  |  | 22,388 |
Deferred provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (70 | ) |  |  | (370 | ) |  |  | 1,153 |
State |  |  | (84 | ) |  |  | (33 | ) |  |  | 122 |
Foreign |  |  | (72 | ) |  |  | (557 | ) |  |  | (477 | )
|  |  | (226 | ) |  |  | (960 | ) |  |  | 798 |
Total provision |  | $ | 18,323 |  |  | $ | 17,496 |  |  | $ | 23,186 |
Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities consist of the following:
|  | December 31,
|  | 2016 |  | 2015
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carry forward, foreign |  | $ | 1,253 |  |  | $ | 1,567 |
Stock-based compensation expense |  |  | 1,882 |  |  |  | 1,043 |
Foreign currency exchange |  |  | 677 |  |  |  | 762 |
Accrued expenses and other |  |  | 308 |  |  |  | 510 |
Inventory reserve |  |  | 640 |  |  |  | 547 |
Deferred tax assets |  | $ | 4,760 |  |  | $ | 4,429 |
|  | December 31,
|  | 2016 |  | 2015
Deferred tax liabilities: |  |  |  |  |  |  |  |
Acquisition-related Intangibles |  | $ | (2,932 | ) |  | $ | (3,738 | )
Depreciation |  |  | (8,376 | ) |  |  | (7,466 | )
Deferred tax liabilities |  | $ | (11,308 | ) |  | $ | (11,204 | )
Net deferred tax liabilities |  | $ | (6,548 | ) |  | $ | (6,775 | )
Tax Rate The reconciliation between the U.S. federal statutory rate and the Company’s effective rate is summarized as follows:
|  | Years ended December 31,
|  | 2016 |  | 2015 |  | 2014
Statutory federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State tax expense, net of federal benefit |  |  | 4.5 | % |  |  | 4.8 | % |  |  | 4.9 | %
Permanent items, including nondeductible expenses |  |  | 0.5 | % |  |  | (0.3 | %) |  |  | 0.1 | %
State investment tax credit |  |  | (0.1 | %) |  |  | 0.0 | % |  |  | (0.1 | %)
Federal, state and foreign research and development credits |  |  | (0.9 | %) |  |  | (0.4 | %) |  |  | (0.7 | %)
Foreign rate differential |  |  | (0.1 | %) |  |  | 0.1 | % |  |  | 0.2 | %
Domestic production deduction |  |  | (2.9 | %) |  |  | (2.9 | %) |  |  | (1.7 | %)
Effective income tax rate |  |  | 36.0 | % |  |  | 36.3 | % |  |  | 37.7 | %
As of December 31, 2016, the Company had NOL’s for income tax purposes in Italy of $5.2 million that do not expire. Accounting for Uncertainty in Income Taxes The Company had no unrecognized tax benefits for the years ended December 31, 2016 and 2015, respectively. In the normal course of business, Anika and its subsidiaries may be periodically examined by various taxing authorities. The Company files income tax returns in the United States on a federal basis, in certain U.S. states, and in Italy. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Substantially all of the Company’s filings from 2013 through the present tax year remain subject to examination by the Internal Revenue Service (“IRS”) and other taxing authorities for U.S. federal and state tax purposes. The Company’s 2014 tax filing has been audited by the IRS and closed. The Company currently has a tax audit in progress in Italy which it does not anticipate will have a material impact on its financial statements. The Company’s filings from 2010 through the present tax year remain subject to examination by the appropriate governmental authorities in Italy. The Company does not anticipate experiencing any significant increases or decreases in its unrecognized tax benefits within the twelve months following December 31, 2016. The Company incurred expenses related to stock-based compensation in 2016 , 2015, and 2014 of $3.4 million, $2.2 million, and $1.6 million, respectively. Accounting for the tax effects of certain stock-based awards requires that the Company establish a deferred tax asset as the compensation expense is recognized for financial reporting prior to recognizing the related tax deduction upon exercise of the awards. The gross tax benefit recognized in the consolidated statement of operations related to stock-based compensation totaled $1.2 million, $1.1 million, and $3.1 million in 2016, 2015, and 2014, respectively. Upon the settlement of certain stock-based awards (i.e., exercise, vesting, forfeiture, or cancellation), the actual tax deduction is compared with cumulative financial reporting compensation cost, and any excess tax deduction related to these awards is considered a windfall tax benefit. Such benefits are tracked in a “windfall tax benefit pool” to offset any future tax deduction shortfalls, and they will be recorded as increases to additional paid-in capital in the period when the tax deduction reduces income taxes payable. The Company follows the with-and-without approach for the direct effects of windfall/shortfall items and to determine the timing of the recognition of any related benefits. The Company recorded a net windfall of $0.6 million, $0.9 million, and $9.6 million in 2016, 2015, and 2014, respectively.

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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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