Astronics Corporation Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The provision (benefit) for income taxes consists of the following:

The effective tax rates differ from the statutory federal income tax rate as follows:


	2014			2013			2012
Statutory Federal Income Tax Rate		35.0	%		35.0	%		35.0	%
Permanent Items
Non-deductible Stock Compensation Expense		0.6	%		1.0	%		1.1	%
Domestic Production Activity Deduction		(2.6	)%		(3.0	)%		(3.0	)%
Non-deductible Acquisition Costs		—	%		1.0	%		—	%
Other		0.1	%		—	%		0.1	%
Foreign Tax Benefits		(1.7	)%		(0.3	)%		(1.2	)%
State Income Tax (Benefits), Net of Federal Income Tax Effect		2.6	%		(0.1	)%		(0.1	)%
Research and Development Tax Credits		(4.3	)%		(5.0	)%		(1.1	)%
Other		(0.7	)%		—	%		(0.1	)%

Effective Tax Rate		29.0	%		28.6	%		30.7	%

Significant components of the Company’s deferred tax assets and liabilities as of December 31, are as follows:


(In thousands)	2014			2013
Deferred Tax Assets:
Goodwill and Intangible Assets	$	2,470		$	3,367
Asset Reserves		4,497			5,780
Deferred Compensation		8,895			6,564
Capital Lease Basis Difference		1,935			—
State Investment Tax Credit Carryforwards, Net of Federal Tax		1,028			665
Customer Advanced Payments and Deferred Revenue		1,795			956
State Net Operating Loss Carryforwards and Other		2,853			2,639

Total Gross Deferred Tax Assets		23,473			19,971
Valuation Allowance for State and Foreign Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax		(3,134	)		(2,509	)

Deferred Tax Assets		20,339			17,462


Deferred Tax Liabilities:
Depreciation		8,586			7,164
Intangible Assets		23,693			27,742
Other		1,237			2,465

Deferred Tax Liabilities		33,516			37,371


Net Deferred Tax Liabilities	$	(13,177	)	$	(19,909	)

The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:


(In thousands)	2014			2013
Deferred Tax Asset — Current	$	7,762		$	5,291
Deferred Tax Liabilities — Current		—			(970	)
Deferred Tax Liabilities — Long-term		(20,939	)		(24,230	)

Net Deferred Tax Liabilities	$	(13,177	)	$	(19,909	)

A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties which are insignificant, is as follows:


(in thousands)	2014			2013		2012
Balance at Beginning of the Year	$	1,940		$	840	$	880
Increases (Decreases) as a Result of Tax Positions Taken in Prior Years		(1,901	)		145		(220	)
Increases as a Result of Tax Positions Taken in the Current Year		142			955		180

Balance at End of the Year	$	181		$	1,940	$	840