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132 - Disclosure - Income Taxes (Tables)
(http://www.cynosure.com/taxonomy/role/NotesToFinancialStatementsIncomeTaxDisclosureTextBlockTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000885306 (http://www.sec.gov/CIK)
Income Tax Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Income Tax Disclosure [Abstract]
 
Income Before Income Tax Provision (Benefit)

Income before income tax provision (benefit) consists of the following:

 

     2016      2015      2014  
     (In thousands)  

Domestic

    $ 22,388      $ 20,667      $ 15,424  

Foreign

      2,555        2,531        2,914  
  

 

 

     

 

 

     

 

 

  

Total

    $ 24,943      $ 23,198      $ 18,338  
  

 

 

     

 

 

     

 

 

  
  
Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of:

 

     2016      2015      2014  
     (In thousands)  

Current:

         

Federal

    $ 9,531      $ 6,133      $ 734  

State

      1,751        1,404        577  

Foreign

      1,854        920        1,306  
  

 

 

     

 

 

     

 

 

  

Total current

      13,136        8,457        2,617  

Deferred:

         

Federal

      (558 )       701        (13,032 ) 

State

      (1,054 )       (1,234 )       (1,398 ) 

Foreign

      (782 )       (533 )       (1,187 ) 
  

 

 

     

 

 

     

 

 

  

Total deferred

      (2,394 )       (1,066 )       (15,617 ) 
  

 

 

     

 

 

     

 

 

  
   $ 10,742      $ 7,391      $ (13,000 ) 
  

 

 

     

 

 

     

 

 

  

 

  
Reconciliation of Federal Statutory Rate

A reconciliation of the federal statutory rate to Cynosure’s effective tax rate is as follows for the years ended December 31:

 

     2016     2015     2014  

Income tax provision at federal statutory rate:

      35.0 %      35.0 %      35.0 % 

(Decrease) increase in tax resulting from -

       

State taxes, net of federal benefit

      2.1       0.2       0.8  

Nondeductible expenses

      2.6       1.5       6.7  

Tax-exempt interest income

      (0.2 )      —         (0.2 ) 

Effect of foreign taxes

      (0.9 )      (1.4 )      (0.6 ) 

Stock-based compensation

      0.3       0.1       0.1  

Research and development credit

      (4.2 )      (2.4 )      (2.7 ) 

Change in uncertain tax positions

      —         —         (0.3 ) 

Change in valuation allowance

      0.1       (3.0 )      (108.8 ) 

Change in control payments

      —         —         1.6  

Unremitted earnings

      (1.0 )      1.4       —    

Domestic manufacturing deduction

      (1.5 )      (2.0 )      —    

Non-deductible officer compensation

      9.1       2.7       0.5  

Other

      1.7       (0.2 )      (3.0 ) 
  

 

 

    

 

 

    

 

 

  

Effective income tax rate

      43.1 %      31.9 %      (70.9 )% 
  

 

 

    

 

 

    

 

 

  
  
Significant Components of Deferred Tax Assets and Liabilities

Significant components of Cynosure’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows:

 

     2016      2015  
     (In thousands)  

Deferred tax assets:

      

Accrued expenses and reserves

    $ 13,576      $ 9,002  

Domestic net operating loss & tax credit carry-forwards

      8,858        12,500  

Foreign net operating loss carry-forwards

      1,216        1,851  

Stock-based compensation

      3,707        5,561  

Capital leases

      7,435        6,694  

Other deferred tax assets

      3,281        3,105  
  

 

 

     

 

 

  

Gross deferred tax assets

    $ 38,073      $ 38,713  

Valuation allowance

      (277 )       (251 ) 
  

 

 

     

 

 

  

Total deferred tax assets (after valuation allowance)

    $ 37,796      $ 38,462  

Long-term deferred tax liabilities:

      

Intangible assets

    $ (10,444 )     $ (12,733 ) 

Fixed assets

      (7,101 )       (6,782 ) 

Other deferred tax liabilities

      (417 )       (1,065 ) 
  

 

 

     

 

 

  

Total long-term deferred tax liabilities

    $ (17,962 )     $ (20,580 ) 
  

 

 

     

 

 

  

Net deferred tax assets

    $ 19,834      $ 17,882  
  

 

 

     

 

 
  
Changes in Gross Unrecognized Tax Benefits

The aggregate changes in gross unrecognized tax benefits during the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

 

     2016      2015      2014  

Balance at beginning of year

    $ 810      $ 810      $ 1,701  

Decreases for acquired tax positions within measurement window

      —          —          (815 ) 

Decreases for tax positions taken in prior periods

      —          —          (76 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 810      $ 810      $ 810