Components of Company's Income Tax Provision |
Below are the components of the Company's income tax provision for the periods indicated:
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Successor |
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Predecessor |
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Year
Ended
12/31/2015
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Period from
06/30/2014
through
12/31/2014
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Six months
Ended
06/29/2014
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Year
Ended
12/31/2013
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Current: |
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Federal & State |
$ |
330 |
|
|
$ |
102 |
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|
|
$ |
105 |
|
|
$ |
552 |
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|
Foreign |
235 |
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|
800 |
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|
212 |
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|
795 |
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Total current |
565 |
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|
902 |
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|
317 |
|
|
1,347 |
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|
Deferred: |
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Federal & State |
(10,892 |
) |
|
(7,081 |
) |
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|
(23,056 |
) |
|
(2,857 |
) |
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Foreign |
(2,492 |
) |
|
(98 |
) |
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|
328 |
|
|
(890 |
) |
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Total deferred |
(13,384 |
) |
|
(7,179 |
) |
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|
(22,728 |
) |
|
(3,747 |
) |
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Valuation allowance |
485 |
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|
89 |
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|
(1,717 |
) |
|
(381 |
) |
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Income tax benefit |
$ |
(12,334 |
) |
|
$ |
(6,188 |
) |
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|
$ |
(24,128 |
) |
|
$ |
(2,781 |
) |
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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:
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As of December 31, 2015 |
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As of December 31, 2014 |
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Current |
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Non-current |
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Current |
|
Non-current |
Deferred Tax Asset: |
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Inventory |
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$ |
10,254 |
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$ |
— |
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$ |
9,905 |
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$ |
— |
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Bad debt reserve |
|
955 |
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|
— |
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|
956 |
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|
— |
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Casualty loss reserve |
|
233 |
|
|
314 |
|
|
363 |
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|
502 |
|
Accrued bonus / deferred compensation |
|
950 |
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|
1,193 |
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|
1,013 |
|
|
907 |
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Deferred rent |
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— |
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|
213 |
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— |
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|
68 |
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Derivative security value |
|
1,112 |
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— |
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|
276 |
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— |
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Deferred distribution of foreign subsidiary |
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— |
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— |
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— |
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|
312 |
|
Deferred financing fees |
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— |
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|
848 |
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— |
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|
5,190 |
|
Deferred revenue - shipping terms |
|
501 |
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|
— |
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|
421 |
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|
— |
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Medical insurance reserve |
|
354 |
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— |
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|
373 |
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|
— |
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Original issue discount amortization |
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— |
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|
272 |
|
|
— |
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|
513 |
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Transaction costs |
|
— |
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|
4,629 |
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— |
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|
1,389 |
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Federal / foreign net operating loss |
|
— |
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|
40,335 |
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|
— |
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|
37,552 |
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State net operating loss |
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— |
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|
4,029 |
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— |
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|
4,089 |
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Tax credit carryforwards |
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— |
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|
3,811 |
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— |
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|
3,619 |
|
All other |
|
73 |
|
|
655 |
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|
31 |
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|
473 |
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Gross deferred tax assets |
|
14,432 |
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|
56,299 |
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|
13,338 |
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|
54,614 |
|
Valuation allowance for deferred tax assets |
|
(168 |
) |
|
(1,451 |
) |
|
(99 |
) |
|
(1,124 |
) |
Net deferred tax assets |
|
$ |
14,264 |
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$ |
54,848 |
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$ |
13,239 |
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$ |
53,490 |
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Deferred Tax Liability: |
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Intangible asset amortization |
|
$ |
— |
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$ |
290,090 |
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$ |
— |
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$ |
303,124 |
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Property and equipment |
|
— |
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|
23,068 |
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— |
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|
24,147 |
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All other items |
|
383 |
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|
903 |
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— |
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|
— |
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Deferred tax liabilities |
|
$ |
383 |
|
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$ |
314,061 |
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|
$ |
— |
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|
$ |
327,271 |
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Net deferred tax liability |
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|
$ |
245,332 |
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$ |
260,542 |
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Long term net deferred tax liability |
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$ |
259,213 |
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$ |
273,781 |
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Current net deferred tax asset |
|
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|
13,881 |
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|
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|
13,239 |
|
Long term net deferred tax asset |
|
|
|
— |
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|
|
|
— |
|
Net deferred tax liability |
|
|
|
$ |
245,332 |
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|
$ |
260,542 |
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Components of Changes in Unrecognized Tax Benefits |
The following is a summary of the changes for the periods indicated below:
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|
|
Successor |
|
|
Predecessor |
|
Year
Ended
12/31/2015
|
|
Period from
06/30/2014
through
12/31/2014
|
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|
Six months
Ended
06/29/2014
|
|
Year
Ended
12/31/2013
|
|
Unrecognized tax benefits - beginning balance |
$ |
435 |
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|
$ |
465 |
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|
$ |
2,024 |
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|
$ |
3,002 |
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Gross increases - tax positions in current period |
— |
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|
— |
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|
— |
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— |
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Gross increases - tax positions in prior period |
|
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|
|
|
— |
|
|
560 |
|
|
Gross decreases - tax positions in prior period |
(61 |
) |
|
(30 |
) |
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|
(1,559 |
) |
|
(1,538 |
) |
|
Unrecognized tax benefits - ending balance |
$ |
374 |
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$ |
435 |
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$ |
465 |
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$ |
2,024 |
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Amount of unrecognized tax benefit that, if recognized would affect the Company's effective tax rate |
$ |
374 |
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$ |
435 |
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$ |
465 |
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$ |
2,024 |
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|