Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.6.0.2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Consolidated Income from Continuing Operations Before Income Taxes
Consolidated income from continuing operations before income taxes consisted of the following (in thousands):
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
U.S. operations
 
$
173,798

 
$
173,966

 
$
118,743

Foreign operations
 
83,100

 
73,353

 
79,778

Income before income tax
 
$
256,898

 
$
247,319

 
$
198,521

Components of Provision (Benefit) for Income Taxes
The components of the provision (benefit) for income taxes consisted of the following (in thousands):
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
 
Federal
 
$
53,840

 
$
61,211

 
$
42,790

State and local
 
6,370

 
6,520

 
3,175

Non-U.S.
 
18,708

 
21,014

 
20,679

 
 
78,918

 
88,745

 
66,644

Deferred:
 
 
 
 
 
 
Federal
 
(12,921
)
 
(8,883
)
 
(5,147
)
State and local
 
(2,166
)
 
(906
)
 
(739
)
Non-U.S.
 
(5,372
)
 
(11,488
)
 
(4,096
)
 
 
(20,459
)
 
(21,277
)
 
(9,982
)
Income tax expense
 
$
58,459

 
$
67,468

 
$
56,662

Reconciliation of Statutory Federal Income Tax Rate to Effective Rate
The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(percent of income)
Provision for federal income taxes at the statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State and local income taxes, net of federal benefit
 
1.5

 
2.2

 
1.5

Non-U.S. income taxed at different rates
 
(5.8
)
 
(3.9
)
 
(3.4
)
Foreign tax credits
 
(3.0
)
 
(1.7
)
 
—

Foreign deferred tax asset
 
(2.5
)
 
—

 
—

Reduction of unrecognized tax benefits
 
—

 
(0.8
)
 
(3.2
)
Research credits
 
(0.8
)
 
(0.9
)
 
(0.9
)
Reduction of valuation allowance
 
—

 
(2.7
)
 
—

Excess tax benefits from stock plans
 
(2.1
)
 
—

 
—

Other
 
0.5

 
0.1

 
(0.5
)
Actual provision for income taxes
 
22.8
 %
 
27.3
 %
 
28.5
 %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following (in thousands):
 
 
December 31,
 
 
2016
 
2015
Deferred tax assets:
 
 
 
 
Accruals and allowances
 
$
51,724

 
$
47,290

Capitalized inventory costs
 
39,661

 
27,669

Stock compensation
 
6,476

 
6,585

Net operating loss carryforwards
 
3,637

 
2,971

Depreciation and amortization
 
19,313

 
14,288

Tax credits
 
443

 
5,805

Other
 
263

 
400

Gross deferred tax assets
 
121,517

 
105,008

Valuation allowance
 
(1,323
)
 
(258
)
Net deferred tax assets
 
120,194

 
104,750

Deferred tax liabilities:
 
 
 
 
Depreciation and amortization
 
(25,703
)
 
(26,608
)
Foreign currency loss
 
(667
)
 
(1,477
)
Other
 
(1,477
)
 
(713
)
Gross deferred tax liabilities
 
(27,847
)
 
(28,798
)
Total net deferred taxes
 
$
92,347

 
$
75,952

Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):
 
 
December 31,
 
 
2016
 
2015
 
2014
Balance at beginning of year
 
$
11,187

 
$
6,630

 
$
14,639

Increases related to prior year tax positions
 
2,514

 
365

 
821

Decreases related to prior year tax positions
 
(5,119
)
 
(2,019
)
 
(7,623
)
Increases related to current year tax positions
 
1,599

 
6,564

 
2,473

Settlements
 
—

 
—

 
(3,121
)
Expiration of statute of limitations
 
(183
)
 
(353
)
 
(559
)
Balance at end of year
 
$
9,998

 
$
11,187

 
$
6,630