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. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

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

	For the year ended
	December 31, 2016		January 2, 2016		December 27, 2014
United States	$	30,562	$	45,964	$	52,713
Foreign		4,339		3,266		13,029
Total	$	34,901	$	49,230	$	65,742

Schedule of Components of Income Tax Provision (Benefit)

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

	For the year ended
	December 31, 2016			January 2, 2016			December 27, 2014
Current tax expense (benefit):
United States	$	9,740		$	14,538		$	17,897
State and local		923			948			1,249
Foreign		1,377			1,359			2,574
Total current		12,040			16,845			21,720
Deferred tax expense (benefit):
United States		(341	)		(781	)		112
State and local		387			(58	)		(7	)
Foreign		(489	)		86			142
Total deferred		(443	)		(753	)		247
Total income tax provision	$	11,597		$	16,092		$	21,967

Schedule of Effective Income Tax Rate Reconciliation

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

	For the year ended
	December 31, 2016			January 2, 2016			December 27, 2014
U.S. federal taxes at statutory rate	$	12,245		$	17,231		$	23,010
Increase (decrease)
Foreign tax credit		—			(310	)		(432	)
Domestic production activity deduction		(1,032	)		(1,699	)		(1,793	)
Foreign income taxed at lower rate		(381	)		(420	)		(957	)
Nondeductible items		—			—			392
State and local taxes, net		586			890			1,242
Change in reserve		(284	)		304			193
Other		463			96			312
Income tax provision	$	11,597		$	16,092		$	21,967

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 31, 2016, and January 2, 2016 are presented below:

	December 31, 2016			January 2, 2016
Deferred tax assets:
Current:
Accrued expenses and other	$	—		$	460
Total current deferred tax assets		—			460
Noncurrent:
Foreign tax benefit of U.S. reserves		3,518			—
Net operating losses		793			—
Accrued expenses and other		2,561			2,157
Total noncurrent deferred tax assets		6,872			2,157
Less: Valuation Allowance		(292	)		—
Net noncurrent deferred tax assets		6,580			2,157
Deferred tax liabilities:
Noncurrent:
Depreciation		(9,916	)		(8,708	)
Intangibles		(2,199	)		—
Other		(261	)		(860	)
Total noncurrent deferred tax liabilities		(12,376	)		(9,568	)
Net noncurrent deferred tax liabilities	$	(5,796	)	$	(7,411	)

Schedule of Unrecognized Tax Benefits Roll Forward

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

Unrecognized tax benefits - December 28, 2013	$	1,122
Increases from positions taken during prior periods		193
Settled positions		(159	)
Lapse of statute of limitations		—
Unrecognized tax benefits - December 27, 2014	$	1,156
Increases from positions taken during prior periods		110
Settled positions		783
Lapse of statute of limitations		—
Unrecognized tax benefits - January 2, 2016	$	2,049
Increases from positions taken during prior periods		157
Settled positions and reclassifications		1,295
Lapse of statute of limitations		—
Unrecognized tax benefits - December 31, 2016	$	3,501