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Income Taxes
6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

15. INCOME TAXES

The Company’s effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in tax jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses and other permanent differences between income before income taxes and taxable income. For each of the three and six months ended June 30, 2016, the Company recorded an income tax benefit of $0.4 million, compared to no income tax benefit or provision for each of the three and six months ended June 30, 2015. The income tax benefit of $0.4 million for each of the three and six months ended June 30, 2016 is largely due to the reversal of net deferred tax liabilities resulting from the amortization of acquired inventory and intangible assets. In connection with the acquisition of Allenex during the quarter, net deferred tax liabilities were established on the acquired identifiable intangible assets and step up to fair market value of acquired inventory.

During the six months ended June 30, 2016, gross unrecognized tax benefits increased by $0.9 million. The balance of gross unrecognized tax benefits was $3.3 million as of June 30, 2016. The increase in the gross unrecognized tax benefits is primarily a result of the acquisition of Allenex. The Company will continue to reevaluate the tax impact of the Allenex acquisition as information is obtained with regards to the estimated values of the assets and liabilities acquired with any adjustments to the preliminary estimates being recorded to goodwill, provided that it is within the measurement period.