Income Tax Disclosure [Abstract] | Period [Axis] |
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2016-01-01 - 2016-12-31 |
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Income Tax Disclosure [Abstract] | |
Income Before Income Tax Provision (Benefit) |
Income before
income tax provision (benefit) consists of the
following:
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2016 |
|
|
2015 |
|
|
2014 |
|
|
|
(In
thousands) |
|
Domestic
|
|
$ |
22,388 |
|
|
$ |
20,667 |
|
|
$ |
15,424 |
|
Foreign
|
|
|
2,555 |
|
|
|
2,531 |
|
|
|
2,914 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total
|
|
$ |
24,943 |
|
|
$ |
23,198 |
|
|
$ |
18,338 |
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Provision (Benefit) for Income Taxes |
The provision
(benefit) for income taxes consists of:
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2016 |
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2015 |
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|
2014 |
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|
(In
thousands) |
|
Current:
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|
|
|
|
|
|
|
|
|
|
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 |
) |
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|
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|
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:
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2016 |
|
|
2015 |
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|
2014 |
|
Income tax provision at
federal statutory rate:
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
(Decrease) increase in
tax resulting from -
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State taxes, net of
federal benefit
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2.1 |
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|
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
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|
0.3 |
|
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|
0.1 |
|
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|
0.1 |
|
Research and development
credit
|
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|
(4.2 |
) |
|
|
(2.4 |
) |
|
|
(2.7 |
) |
Change in uncertain tax
positions
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|
— |
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|
|
— |
|
|
|
(0.3 |
) |
Change in valuation
allowance
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|
|
0.1 |
|
|
|
(3.0 |
) |
|
|
(108.8 |
) |
Change in control
payments
|
|
|
— |
|
|
|
— |
|
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|
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
|
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|
1.7 |
|
|
|
(0.2 |
) |
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|
(3.0 |
) |
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|
Effective income tax
rate
|
|
|
43.1 |
% |
|
|
31.9 |
% |
|
|
(70.9 |
)% |
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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:
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2016 |
|
|
2015 |
|
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|
(In
thousands) |
|
Deferred tax
assets:
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|
|
|
|
|
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|
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 |
|
|
|
|
|
|
|
|
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|
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):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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|
|
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