INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income before income taxes consisted of the following:



	Years Ended December 31,
	2015		2014		2013
	(In thousands)
United States operations	$	37,450	$	21,349	$	6,512
Foreign operations	23,221		24,217		12,274
Total	$	60,671	$	45,566	$	18,786

Schedule Of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:



	Years Ended December 31,
	2015		2014		2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal tax benefit	1.3	%	5.6	%	0.2	%
Foreign operations	(12.5	)%	(16.7	)%	(27.2	)%
Spine valuation allowance	61.1	%	—	%	—	%
Charitable contributions	(1.0	)%	(2.7	)%	(0.9	)%
Domestic production activities deduction	(2.4	)%	(2.7	)%	—	%
Intercompany profit in inventory	3.1	%	(0.4	)%	(1.4	)%
Nondeductible facilitative costs	3.1	%	1.1	%	—	%
Changes in valuation allowances	0.3	%	2.1	%	1.5	%
Uncertain tax positions	0.2	%	(3.4	)%	(13.8	)%
Research and development credit	(1.9	)%	(1.8	)%	(5.7	)%
Return to provision	1.7	%	1.4	%	(9.8	)%
Other	0.7	%	2.8	%	4.8	%
Effective tax rate	88.7	%	20.3	%	(17.3	)%

Schedule Of Provision For Income Taxes

The provision for income taxes consisted of the following:



	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Current:
Federal	$	46,665		$	10,330		$	(2,931	)
State	2,301			2,124			399
Foreign	5,205			3,666			632
Total current	$	54,171		$	16,120		$	(1,900	)
Deferred:
Federal	1,282			(5,524		)	(2,409		)
State	(394		)	695			(1,136		)
Foreign	(1,239		)	(2,020		)	2,204
Total deferred	$	(351	)	$	(6,849	)	$	(1,341	)
Provision (benefit) for income taxes	$	53,820		$	9,271		$	(3,241	)

Schedule Of Deferred Tax Assets And Liabilities

The income tax effects of significant temporary differences that give rise to deferred tax assets and liabilities, shown before jurisdictional netting, are presented below:



	December 31,
	2015		2014
	(In thousands)
Current assets:
Doubtful accounts	$	—	$	1,727
Inventory related items	—		30,017
Tax credits	—		3,156
Accrued vacation	—		3,310
Accrued bonus	—		5,596
Other	—		2,694
Total current deferred tax assets	—		46,500
Less valuation allowance	—		(528		)
Current deferred tax assets after valuation allowance	$	—	$	45,972
Current liabilities:
Other	—		(483		)
Total current deferred tax liabilities	$	—	$	(483	)
Net current deferred tax assets	$	—	$	45,489



	December 31,
	2015			2014
	(In thousands)
Non-current assets:
Doubtful accounts	$	1,943		$	—
Inventory related items	24,417			—
Tax credits	3,137			—
Accrued vacation	2,713			—
Accrued bonus	7,555			—
Stock compensation	16,222			14,840
Deferred revenue	767			3
Net operating loss carryforwards	17,548			17,899
Federal & state tax credits	6,227			12,278
Other	1,952			(402		)
Total non-current deferred tax assets	82,481			44,618
Less valuation allowance	(4,887		)	(6,244		)
Non-current deferred tax assets after valuation allowance	$	77,594		$	38,374
Non-current liabilities:
Intangible & fixed assets	(225,328		)	(148,714		)
Other	(225		)	(665		)
Total non-current deferred tax liabilities	$	(225,553	)	$	(149,379	)
Net non-current deferred tax assets (liabilities)	$	(147,959	)	$	(111,005	)
Total net deferred tax assets (liabilities)	$	(147,959	)	$	(65,516	)

Schedule Of Uncertain Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of uncertain tax benefits is as follows:



	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Balance, beginning of year	$	959		$	3,040		$	5,874
Gross increases:
Current year tax positions	—			—			259
Prior years' tax positions	541			527			546
Gross decreases:
Prior years' tax positions	—			(286		)	(476		)
Settlements	—			(828		)	—
Statute of limitations lapses	(404		)	(1,494		)	(3,163		)
Other	(11		)	—			—
Balance, end of year	$	1,085		$	959		$	3,040