Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.5.0.2
Income Taxes
6 Months Ended
Jun. 30, 2016
Income Taxes  
Income Taxes

10.Income Taxes

 

The following table includes the Companys income before income (loss) tax provision (benefit), income tax provision (benefit) and effective tax rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

    

2016

    

2015

    

2016

 

2015

 

Income before income tax provision (benefit)

 

$

(11,161)

 

$

4,215

 

$

(27,870)

 

$

8,694

 

Income tax provision (benefit)

 

 

(3,218)

 

 

1,679

 

 

(8,934)

 

 

3,647

 

Effective tax rate

 

 

28.8

%  

 

40.0

%  

 

32.1

%

 

41.9

%

 

The Companys effective tax rate in the three months ended June 30, 2016, was lower than the effective tax rate in the three months ended June 30, 2015, primarily due to various permanent items, accrual for reserves for uncertain tax positions and a decrease in the tax rate for federal purposes from 35% to 34%.  The Companys effective tax rate in the six months ended June 30, 2016, was lower than the effective tax rate in the six months ended June 30, 2015,  primarily due to a decrease in the tax rate for federal purposes from 35% to 34%.

 

The liability for unrecognized tax benefits reported in other non-current liabilities was $14,683 and $14,129 at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016, the amount of unrecognized tax benefits that would benefit the Companys effective tax rate, if recognized, was $14,219. At this time, the Company does not believe the liability will materially decrease in the next twelve months.

 

The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. The Company had accrued interest and penalties of $390 and $(158) during the six and twelve months ended June 30, 2016 and December 31, 2015, respectively.

 

The Company files a consolidated federal income tax return and separate tax returns with various states. Additionally, foreign subsidiaries of the Company file tax returns in foreign jurisdictions. The Companys tax returns for the calendar years ended December 31, 2014, 2013, and 2012 remain open to examination by the Internal Revenue Service in their entirety. With respect to state taxing jurisdictions, the Companys tax returns for calendar years ended December 31, 2014, 2013, 2012, 2011 and 2010 remain open to examination by various state revenue services.

 

Our Indian subsidiaries are currently under examination by the India tax authorities for the fiscal years ending March 31, 2005 and forward. Based on the outcome of the examinations of our subsidiaries or the result of the expiration of statutes of limitations it is reasonably possible that the unrecognized tax benefits could change from those recorded in the condensed consolidated balance sheet. It is possible that one or more of these audits may be finalized within the next twelve months.