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]  
Components of Company's Income Tax Provision

Below are the components of the Company’s income tax provision for the periods indicated:

 

     Successor           Predecessor  
     Period from
06/30/2014
through

12/31/2014
           Six months
Ended

06/29/2014
     Year
Ended

12/31/2013
     Year
Ended

12/31/2012
 
              

Current:

                

Federal & State

   $ 102            $ 105       $ 552       $ 206   

Foreign

     800              212         795         344   
  

 

 

         

 

 

    

 

 

    

 

 

 

Total current

  902        317      1,347      550   
  

 

 

         

 

 

    

 

 

    

 

 

 

Deferred:

 

Federal & State

  (7,081     (23,056   (2,857   (5,000

Foreign

  (98     328      (890   (746
  

 

 

         

 

 

    

 

 

    

 

 

 

Total deferred

  (7,179     (22,728   (3,747   (5,746
  

 

 

         

 

 

    

 

 

    

 

 

 

Valuation allowance

  89        (1,717   (381   28   
  

 

 

         

 

 

    

 

 

    

 

 

 

Income tax benefit

$ (6,188   $ (24,128 $ (2,781 $ (5,168
  

 

 

         

 

 

    

 

 

    

 

 

 
Deferred Tax Assets and Liabilities

The table below reflects the significant components of the Company’s net deferred tax assets and liabilities at December 31, 2014 and 2013:

 

     Successor Period
As of December 31, 2014
           Predecessor Period
As of December 31, 2013
 
     Current      Non-current            Current      Non-current  

Deferred Tax Asset:

                

Inventory

   $ 9,905       $ —              $ 8,377       $ —     

Bad debt reserve

     956         —                978         —     

Casualty loss reserve

     363         502              297         410   

Accrued bonus / deferred compensation

     1,013         907              1,805         4,608   

Deferred rent

     —           68              —           546   

Derivative security value

     276         —                (120      —     

Deferred distribution of foreign subsidiary

        312                 —     

Deferred financing fees

     —           5,190              —           283   

Deferred revenue - shipping terms

     421                 285         —     

Medical insurance reserve

     373         —                355         —     

Original issue discount amortization

        513              —           596   

Transaction costs

        1,389              —           3,454   

Federal / foreign net operating loss

        37,552              —           20,595   

State net operating loss

        4,089              —           2,524   

Unrecognized tax benefit

        (58           —           (2,024

Tax credit carryforwards

        3,619              —           2,881   

All other

     31         531              (275      824   
  

 

 

    

 

 

         

 

 

    

 

 

 

Gross deferred tax assets

  13,338      54,614        11,702      34,697   

Valuation allowance for deferred tax assets

  (99   (1,124     (606   (2,302
  

 

 

    

 

 

         

 

 

    

 

 

 

Net deferred tax assets

$ 13,239    $ 53,490      $ 11,096    $ 32,395   
  

 

 

    

 

 

         

 

 

    

 

 

 

Deferred Tax Liability:

 

Intangible asset amortization

$ —      $ 303,124      $ —      $ 135,335   

Property and equipment

  —        24,147        —        17,106   

All other items

  —        —          —        14   
  

 

 

    

 

 

         

 

 

    

 

 

 

Deferred tax liabilities

$ —      $ 327,271      $ —      $ 152,455   
  

 

 

    

 

 

         

 

 

    

 

 

 

Net deferred tax liability

$ 260,542      $ 108,964   
     

 

 

            

 

 

 

Long term net deferred tax liability

$ 273,781      $ 120,060   

Current net deferred tax asset

  13,239        11,096   

Long term net deferred tax asset

  —          —     
     

 

 

            

 

 

 

Net deferred tax liability

$ 260,542      $ 108,964   
     

 

 

            

 

 

 
Reconciliation of Statutory Income Tax Rates to Effective Income Tax Rates

Below is a reconciliation of statutory income tax rates to the effective income tax rates for the periods indicated:

 

     Successor          Predecessor  
    

Period from
06/30/2014

through

        

Six months

Ended

    Year
Ended
    Year
Ended
 
     12/31/2014           06/29/2014     12/31/2013     12/31/2012  

Statutory federal income tax rate

     35.0          35.0     35.0     35.0

Non-U.S. taxes and the impact of non-U.S. losses for which a current tax benefit is not available

     -11.0          1.5     -19.6     -6.1

State and local income taxes, net of U.S. federal income tax benefit

     2.5          3.0     -0.1     1.9

Adjustment of reserve for change in valuation allowance and other items

     0.5          -0.3     15.0     1.2

Adjustment for change in tax law

     3.1          0.5     8.9     -0.4

Adjustment of unrecognized tax benefits

     0.0          0.0     36.6     11.6

Permanent differences:

             

Acquisition and related transaction costs

     -8.2          -4.0     -4.0     -0.9

Meals and entertainment expense

     -0.2          -0.1     -3.5     -1.1

Foreign tax credit

     2.4          0.0     1.3     0.0

Reconciliation of tax provision to return

     0.0          0.0     2.0     0.5

Reconciliation of other adjustments

     0.5          -0.5     -0.8     0.0
  

 

 

        

 

 

   

 

 

   

 

 

 

Effective income tax rate

  24.6     35.1   70.8   41.7
  

 

 

        

 

 

   

 

 

   

 

 

 
Components of Changes in Unrecognized Tax Benefits

The following is a summary of the changes for the periods indicated below:

 

     Successor           Predecessor  
     Period from
06/30/2014
through
12/31/2014
           Six months
Ended
06/29/2014
     Year
Ended
12/31/2013
     Year
Ended
12/31/2012
 

Unrecognized tax benefits - beginning balance

   $ 465            $ 2,024       $ 3,002       $ 4,440   
 

Gross increases - tax positions in current period

     —                —           —           —     

Gross increases - tax positions in prior period

             —           560         —     

Gross decreases - tax positions in prior period

     (30           (1,559      (1,538      (1,438
  

 

 

         

 

 

    

 

 

    

 

 

 

Unrecognized tax benefits - ending balance

$ 435      $ 465    $ 2,024    $ 3,002   
  

 

 

         

 

 

    

 

 

    

 

 

 

Amount of unrecognized tax benefit that, if recognized would affect the company’s effective tax rate

$ 435      $ 465    $ 2,024    $ 3,002