Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income (Loss) from Continuing Operations

Components of the Company’s income (loss) from continuing operations before income taxes are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Income (loss) from continuing operations before income taxes:
Canada	$	(1,872	)	$	(1,674	)	$	(20,212	)
U.S.		20,422			23,298			(9,661	)
Other		13,972			24,398			11,958
Total	$	32,522		$	46,022		$	(17,915	)

Components of Income Tax Provision (Benefit)

Components of the Company’s income tax provision (benefit) are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Current
Canada	$	43		$	96		$	175
U.S.		9,678			8,136			3,615
Other		2,564			3,854			1,940
		12,285			12,086			5,730
Deferred
Canada		—			—			—
U.S.		(2,378	)		(3,239	)		(6,731	)
Other		612			1,547			(5	)
		(1,766	)		(1,692	)		(6,736	)
Total	$	10,519		$	10,394		$	(1,006	)

Reconciliation of Statutory Canadian Tax rate to Effective Tax Rate

The reconciliation of the statutory Canadian tax rate to the effective tax rate related to income before income taxes from continuing operations is as follows (in thousands, except percentage data):

	Year Ended December 31,
	2016			2015			2014
Statutory Canadian tax rate		28.50	%		27.00	%		27.00	%
Expected income tax provision at Canadian statutory tax rate	$	9,269		$	12,426		$	(4,837	)
International tax rate differences		891			304			(1,132	)
State income taxes, net		503			453			(271	)
Withholding and other taxes		441			731			421
Permanent differences		179			1,000			486
Acquisition contingent consideration adjustments		762			—			—
Transaction costs		649			270			8
Section 199 deduction		(1,063	)		(1,188	)		(574	)
Change in valuation allowance		1,202			(612	)		4,809
Provision to return differences		(93	)		(617	)		962
Tax credits		(1,095	)		(990	)		(1,678	)
Statutory tax rate change		(856	)		95			(13	)
Uncertain tax positions		(103	)		121			134
IRS audit		—			(748	)		241
JK Lasers divestiture		—			(1,432	)		—
Goodwill impairment		—			—			330
Other		(167	)		581			108
Reported income tax provision (benefit)	$	10,519		$	10,394		$	(1,006	)
Effective tax rate		32.3	%		22.6	%		5.6	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):

	December 31,
	2016			2015
Deferred tax assets:
Losses	$	9,557		$	9,985
Compensation related deductions		4,437			2,915
Tax credits		2,318			2,409
Restructuring related liabilities		471			294
Inventory		5,869			4,415
Depreciation		—			503
Amortization		3,082			3,205
Warranty		1,049			1,127
Other		1,688			1,281
Total deferred tax assets		28,471			26,134
Valuation allowance on deferred tax assets		(13,014	)		(12,537	)
Net deferred tax assets	$	15,457		$	13,597
Deferred tax liabilities:
Equity-method investment	$	(1,370	)	$	(1,733	)
Depreciation		(749	)		—
Amortization		(4,162	)		(2,791	)
Unrealized currency gains/losses		(659	)		(1,292	)
Other		(1,218	)		(345	)
Total deferred tax liabilities	$	(8,158	)	$	(6,161	)
Net deferred income tax assets (liabilities)	$	7,299		$	7,436

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2013	$	7,074
Additions based on tax positions related to the current year		1,180
Additions for tax positions of prior years		2,601
Reductions for tax positions of prior years		(2,404	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(2,177	)
Balance at December 31, 2014		6,274
Additions based on tax positions related to the current year		752
Additions for tax positions of prior years		78
Reductions for tax positions of prior years		(626	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(226	)
Settlements with tax authorities		(762	)
Balance at December 31, 2015		5,490
Additions based on tax positions related to the current year		561
Additions for tax positions of prior years		88
Reductions for tax positions of prior years		(45	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(842	)
Settlements with tax authorities		(290	)
Balance at December 31, 2016	$	4,962

Income Tax Returns to be Reviewed

The Company’s income tax returns may be reviewed by tax authorities in the following countries for the following periods under the appropriate statute of limitations:

United States	2013 - Present
Canada	2011 - Present
United Kingdom	2015 - Present
Germany	2011 - Present
Netherlands	2011 - Present
China	2007 - Present
Japan	2012 - Present