Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
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
 
 
Year
Ended
12/31/2015
 
Period from
06/30/2014
through
12/31/2014
 
 
Six months
Ended
06/29/2014
 
Year
Ended
12/31/2013
 
 
 
Current:
 
 
 
 
 
 
 
 
 
 
Federal & State
$
330

 
$
102

 
 
$
105

 
$
552

 
 
Foreign
235

 
800

 
 
212

 
795

 
 
Total current
565

 
902

 
 
317

 
1,347

 
 
Deferred:
 
 
 
 
 
 
 
 
 
 
Federal & State
(10,892
)
 
(7,081
)
 
 
(23,056
)
 
(2,857
)
 
 
Foreign
(2,492
)
 
(98
)
 
 
328

 
(890
)
 
 
Total deferred
(13,384
)
 
(7,179
)
 
 
(22,728
)
 
(3,747
)
 
 
Valuation allowance
485

 
89

 
 
(1,717
)
 
(381
)
 
 
Income tax benefit
$
(12,334
)
 
$
(6,188
)
 
 
$
(24,128
)
 
$
(2,781
)
 
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, 2015 and 2014:
 
 
As of December 31, 2015
 
As of December 31, 2014
 
 
Current
 
Non-current
 
Current
 
Non-current
Deferred Tax Asset:
 
 
 
 
 
 
 
 
Inventory
 
$
10,254

 
$

 
$
9,905

 
$

Bad debt reserve
 
955

 

 
956

 

Casualty loss reserve
 
233

 
314

 
363

 
502

Accrued bonus / deferred compensation
 
950

 
1,193

 
1,013

 
907

Deferred rent
 

 
213

 

 
68

Derivative security value
 
1,112

 

 
276

 

Deferred distribution of foreign subsidiary
 

 

 

 
312

Deferred financing fees
 

 
848

 

 
5,190

Deferred revenue - shipping terms
 
501

 

 
421

 

Medical insurance reserve
 
354

 

 
373

 

Original issue discount amortization
 

 
272

 

 
513

Transaction costs
 

 
4,629

 

 
1,389

Federal / foreign net operating loss
 

 
40,335

 

 
37,552

State net operating loss
 

 
4,029

 

 
4,089

Tax credit carryforwards
 

 
3,811

 

 
3,619

All other
 
73

 
655

 
31

 
473

Gross deferred tax assets
 
14,432

 
56,299

 
13,338

 
54,614

Valuation allowance for deferred tax assets
 
(168
)
 
(1,451
)
 
(99
)
 
(1,124
)
Net deferred tax assets
 
$
14,264

 
$
54,848

 
$
13,239

 
$
53,490

Deferred Tax Liability:
 
 
 
 
 
 
 
 
Intangible asset amortization
 
$

 
$
290,090

 
$

 
$
303,124

Property and equipment
 

 
23,068

 

 
24,147

All other items
 
383

 
903

 

 

Deferred tax liabilities
 
$
383

 
$
314,061

 
$

 
$
327,271

Net deferred tax liability
 
 
 
$
245,332

 
 
 
$
260,542

Long term net deferred tax liability
 
 
 
$
259,213

 
 
 
$
273,781

Current net deferred tax asset
 
 
 
13,881

 
 
 
13,239

Long term net deferred tax asset
 
 
 

 
 
 

Net deferred tax liability
 
 
 
$
245,332

 
 
 
$
260,542

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
 
 
Year
Ended
12/31/2015
Period from
06/30/2014
through
12/31/2014
 
 
Six months
Ended
06/29/2014
 
Year
Ended
12/31/2013
 
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
 
(0.8
)%
(11.0
)%
 
 
1.5
 %
 
(19.6
)%
 
State and local income taxes, net of U.S. federal income tax benefit
 
2.6
 %
2.5
 %
 
 
3.0
 %
 
(0.1
)%
 
Adjustment of reserve for change in valuation allowance and other items
 
(0.7
)%
0.5
 %
 
 
(0.3
)%
 
15.0
 %
 
Adjustment for change in tax law
 
 %
3.1
 %
 
 
0.5
 %
 
8.9
 %
 
Adjustment of unrecognized tax benefits
 
 %
 %
 
 
 %
 
36.6
 %
 
Permanent differences:
 
 
 
 
 
 
 
 
 
Acquisition and related transaction costs
 
(0.2
)%
(8.2
)%
 
 
(4.0
)%
 
(4.0
)%
 
Meals and entertainment expense
 
(0.4
)%
(0.2
)%
 
 
(0.1
)%
 
(3.5
)%
 
Foreign tax credit
 
 %
2.4
 %
 
 
 %
 
1.3
 %
 
Reconciliation of tax provision to return
 
(0.7
)%
 %
 
 
 %
 
2.0
 %
 
Reconciliation of other adjustments
 
 %
0.5
 %
 
 
(0.5
)%
 
(0.8
)%
 
Effective income tax rate
 
34.8
 %
24.6
 %
 
 
35.1
 %
 
70.8
 %
 
Components of Changes in Unrecognized Tax Benefits
The following is a summary of the changes for the periods indicated below:
 
Successor
 
 
Predecessor
 
Year
Ended
12/31/2015
 
Period from
06/30/2014
through
12/31/2014
 
 
Six months
Ended
06/29/2014
 
Year
Ended
12/31/2013
 
Unrecognized tax benefits - beginning balance
$
435

 
$
465

 
 
$
2,024

 
$
3,002

 
Gross increases - tax positions in current period

 

 
 

 

 
Gross increases - tax positions in prior period
 
 
 
 
 

 
560

 
Gross decreases - tax positions in prior period
(61
)
 
(30
)
 
 
(1,559
)
 
(1,538
)
 
Unrecognized tax benefits - ending balance
$
374

 
$
435

 
 
$
465

 
$
2,024

 
Amount of unrecognized tax benefit that, if recognized would affect the Company's effective tax rate
$
374

 
$
435

 
 
$
465

 
$
2,024