Helios Technologies Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Summary of components of income before income taxes

For financial reporting purposes, income before income taxes includes the following components:


	For the year ended
	December 29, 2012		December 31, 2011		January 1, 2011

United States	$	44,957	$	43,513	$	22,344
Foreign		10,896		14,073		9,299


Total	$	55,853	$	57,586	$	31,643

Summary of components of the income tax provision (benefit)

The components of the income tax provision (benefit) are as follows:


	For the year ended
	December 29, 2012			December 31, 2011			January 1, 2011
Current tax expense (benefit):
United States	$	15,396		$	14,034		$	7,985
State and local		924			436			202
Foreign		1,788			3,972			1,434


Total current		18,108			18,442			9,621


Deferred tax expense (benefit):
United States		545			1,095			469
State and local		12			471			263
Foreign		(210	)		(99	)		(110	)


Total deferred		347			1,467			622


Total income tax provision	$	18,455		$	19,909		$	10,243

Reconciliation between the effective income tax rate and the U.S. federal statutory rate

The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows:


	For the year ended
	December 29, 2012			December 31, 2011			January 1, 2011

U.S. federal taxes at statutory rate	$	19,549		$	20,155		$	11,075
Increase (decrease)
Foreign tax credit		(358	)		(1,026	)		(227	)
Domestic production activity deduction		(1,483	)		(1,075	)		(519	)
Research and Development Tax Credit - Current Year		(50	)		(150	)		(150	)
Foreign income taxed at lower rate		(901	)		(1,052	)		(584	)
Nondeductible items		411			1,049			40
State and local taxes, net		935			907			465
Change in reserve		710			440			9
Other		(358	)		661			134


Income tax provision	$	18,455		$	19,909		$	10,243

Schedule of Deferred tax assets and liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 29, 2012 and December 31, 2011 are presented below:


	December 29, 2012			December 31, 2011
Deferred tax assets:
Current:
Accrued expenses and other	$	248		$	260


Total current deferred tax assets		248			260


Noncurrent:
Accrued expenses and other		1,426			2,028


Total noncurrent deferred tax assets		1,426			2,028


Deferred tax liabilities:
Noncurrent:
Depreciation		(8,656	)		(8,484	)
Other		—			(461	)


Total noncurrent deferred tax liabilities		(8,656	)		(8,945	)


Net noncurrent deferred tax liability	$	(7,230	)	$	(6,917	)

Summary of unrecognized tax benefits

The following is a roll-forward of the Company’s unrecognized tax benefits:


Unrecognized tax benefits - January 2, 2010	$	160
Increases from positions taken during prior periods		47
Lapse of statute of limitations		(38	)

Unrecognized tax benefits - January 1, 2011	$	169
Increases from positions taken during prior periods		440
Lapse of statute of limitations		—

Unrecognized tax benefits - December 31, 2011	$	609
Increases from positions taken during prior periods		710
Settled positions		(124	)
Lapse of statute of limitations		—

Unrecognized tax benefits - December 29, 2012	$	1,195