Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.1.9
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Provisions for Income Tax Expense (Benefit)

The provisions for income tax expense (benefit) were as follows (in thousands):

 

     2014      2013      2012  

Federal:

        

Current

   $ 7,677       $ 632       $ (67

Deferred

     23,659         11,537         (6,381
  

 

 

    

 

 

    

 

 

 

Total federal

  31,336      12,169      (6,448
  

 

 

    

 

 

    

 

 

 

State:

Current

  2,060      519      1,796   

Deferred

  529      119      (307
  

 

 

    

 

 

    

 

 

 

Total state

  2,589      638      1,489   
  

 

 

    

 

 

    

 

 

 

Foreign:

Current

  5,399      8,228      5,325   

Deferred

  (140   312      (405
  

 

 

    

 

 

    

 

 

 

Total foreign

  5,259      8,540      4,920   
  

 

 

    

 

 

    

 

 

 

Total income taxes (benefit)

$ 39,184    $ 21,347    $ (39
  

 

 

    

 

 

    

 

 

Schedule of Earnings (Loss) before Income Taxes and Income Tax Expense (Benefit)

The Company’s earnings (loss) before income taxes and income tax expense (benefit) for 2014, 2013 and 2012 are as follows (in thousands):

 

     Years Ended December 31,  
     2014     2013     2012  

Income tax jurisdiction

   Earnings (loss)
before income
taxes
    Income tax
expense
    Earnings (loss)
before income
taxes
    Income tax
expense
    Earnings (loss)
before income
taxes
    Income tax
expense

(benefit)
 

United States

   $ 82,778      $ 32,500      $ 38,705      $ 12,807      $ (27,379   $ (5,867

Canada

     6,241        1,572        4,091        1,187        2,564        545   

Chile

     629        138        9,622        1,920        5,971        1,043   

Peoples Republic of China (“China”)

     15,201        1,179        6,148        1,646        1,278        319   

Jersey (1)

     77,555        —          25,348        —          25,162        —     

Non-benefited loss operations (2)

     (13,021     —          (15,841     —          (13,492     —     

Other jurisdictions (3)

     21,997        3,795        14,142        3,787        16,369        3,921   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

$ 191,380    $ 39,184    $ 82,215    $ 21,347    $ 10,473    $ (39
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effective tax rate (4)

  20.5   26.0   (0.4 )% 

 

(1)

Jersey does not assess income tax on corporate net earnings.

(2)

Consists of entities in the following tax jurisdictions where no tax benefit is recognized in the period being reported because of the provision of offsetting valuation allowances: Japan, Brazil and India.

(3)

Consists of entities in the following tax jurisdictions, each of which comprises not more than 5%, of 2014 consolidated earnings (loss) before taxes: UK, Germany, France, Spain, Belgium, Italy, Netherlands, Switzerland, Malaysia, Thailand, Singapore, Hong Kong, Portugal and Austria.

(4)

The effective tax rate is calculated by dividing income tax expense (benefit) by earnings before income taxes.

Summary of Earnings before Income Taxes

Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows (in thousands):

 

     2014     2013     2012  

Expected income tax expense

   $ 66,981      $ 28,775      $ 3,666   

State income tax, net of federal benefit

     1,032        255        1,406   

Rate differential on foreign income

     (27,364     (11,897     (8,752

Change in unrecognized tax benefits

     (2,717     740        (149

Non-deductible expenses

     288        (150     194   

Prior year R&D credit claims

     —          (493     —     

Other

     3,333        (1,187     79   

Change in valuation allowance

     (2,369     5,304        3,517   
  

 

 

   

 

 

   

 

 

 

Total provision (benefit) for income taxes

$ 39,184    $ 21,347    $ (39
  

 

 

   

 

 

   

 

 

 

Effective tax rate

  20.5   26.0   (0.4 )% 
Deferred Tax Assets

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented below (in thousands):

 

DEFERRED TAX ASSETS:

   2014      2013  

Deferred tax assets – current:

     

Inventory adjustments

   $ 4,942       $ 5,075   

Accrued expenses

     15,103         17,084   

Allowances for bad debts and chargebacks

     6,407         6,179   
  

 

 

    

 

 

 

Total current assets

  26,452      28,338   
  

 

 

    

 

 

 

Deferred tax assets – long term:

Loss carryforwards

  23,247      43,711   

Business credit carryforward

  4,042      9,763   

Share-based compensation

  2,282      279   

Valuation allowance

  (17,534   (19,903
  

 

 

    

 

 

 

Total long term assets

  12,037      33,850   
  

 

 

    

 

 

 

Total deferred tax assets

  38,489      62,188   
  

 

 

    

 

 

 

Deferred tax liabilities – current:

Prepaid expenses

  7,588      6,223   

Deferred tax liabilities – long term:

Depreciation on property, plant and equipment

  22,050      24,703   
  

 

 

    

 

 

 

Total deferred tax liabilities

  29,638      30,926   
  

 

 

    

 

 

 

Net deferred tax assets

$ 8,851    $ 31,262   
  

 

 

    

 

 

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

 

     2014      2013  

Beginning balance

   $ 10,816       $ 10,221   

Additions for current year tax positions

     773         696   

Additions for prior year tax positions

     —           164   

Reductions for prior year tax positions

     (2,227      (5

Settlement of uncertain tax positions

     —           —     

Reductions related to lapse of statute of limitations

     (1,426      (260
  

 

 

    

 

 

 

Ending balance

$ 7,936    $ 10,816