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

The Company typically determines its interim income tax provision by using the estimated annual effective tax rate and applying that rate to income/loss on a current year-to-date basis, adjusted for the tax effects of items that relate discretely to the interim period, if any. However, if minor changes to forecasted annual pre-tax earnings have a significant effect on the estimated annual effective tax rate, or if a reliable estimate of the annual effective tax rate cannot otherwise be made, the Company may determine that this method would not be appropriate and that a different method should be applied. Furthermore, as a result of a partial increase in the tax basis of the Company's tangible and intangible assets attributable to transactions entered into by affiliates controlled by a former stockholder at the time of the Company's 2004 initial public offering ("Tax Basis Increase"), the Company may pay reduced tax amounts to the extent it generates sufficient taxable income in the future (refer to the Company's 2015 Form 10-K for a more detailed description). The Company is obligated to remit to the affiliate of the former stockholder 85% of any realized cash savings in U.S. Federal income tax, California franchise tax and certain other related tax benefits. Due to the effect of this arrangement on the Company's provision for income taxes, the Company also combines the effect of the increase/decrease in income tax benefit payable to former stockholder (referred to as the combined effective tax rate).

For the three and six months ended June 30, 2016, the Company determined that the annual effective tax rate method would not represent a reliable estimate of the interim income tax provision. As a result, the Company utilized a discrete period method to calculate taxes for the three and six months ended June 30, 2016. Under the discrete period method, the Company determined the income tax provision based upon actual results as if the interim period were an annual period. For the three and six months ended June 30, 2015, the Company utilized the annual effective tax rate method (as described above) to calculate the income tax provision.

For the three and six months ended June 30, 2016, the Company recorded a provision for income taxes of $1.3 million and $2.5 million, respectively, or an effective tax rate of 48.6% and 15.4%, respectively. The Company's combined effective tax rate for the three and six months ended June 30, 2016 was also 48.6% and 15.4%, respectively, as the Company did not record an increase nor a decrease to the Payable to Former Stockholder in its statements of operations. For the three and six months ended June 30, 2015, the Company recorded a provision for income taxes of $1.8 million and $4.2 million, respectively, or an effective tax rate of (5.8)% and (5.0)%, respectively. For the three and six months ended June 30, 2015, the Company's combined effective tax rate was (29.3)% and (13.5)%, respectively. The Company's effective tax rate and combined effective tax rate for the three and six months ended June 30, 2015 were negative due to a loss before income taxes. The Company's effective tax rates and combined effective tax rates for the three and six months ended June 30, 2016 and 2015 were primarily attributable to foreign taxes, as well as the effect of a valuation allowance. In addition, as it relates to the three- and six-month periods ended June 30, 2015, the combined effective tax rates were also attributable to an increase in the Company's income tax benefit payable to former stockholder.

The Company's federal income tax returns for the tax years ended December 31, 2007 through 2009 and for the years ended December 31, 2012 through 2013 are currently under examination by the Internal Revenue Service, and tax years subsequent to 2013 remain open to audit. The Company's California state tax returns for all years subsequent to 2010 remain open to audit. The Company's India subsidiary's income tax returns are currently under examination for the tax years ended March 31, 2013 through 2014.