Nautilus 2013 Annual Report Download - page 51

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Deferred Income Taxes
Individually significant components of Deferred Income Tax Assets (Liabilities) were as follows (in thousands):
Our Net Deferred Income Tax Asset (Liability) was recorded on our Consolidated Balance Sheets as follows (in thousands):
As a result of certain realization requirements of ASC 718, the table of deferred tax assets and liabilities shown above does not include certain
deferred tax assets as of December 31, 2013, and December 31, 2012, that arose directly from tax deductions related to equity compensation
greater than compensation recognized for financial reporting. Equity will be increased by $0.3 million
if and when such deferred tax assets are
ultimately realized. We use tax law ordering when determining when excess tax benefits have been realized.
In the second quarter of 2013, we evaluated the potential realization of our Deferred Income Tax Assets, considering both positive and negative
evidence, including cumulative income or loss for the past three
years and forecasted taxable income. As a result of this evaluation we concluded
that, as of June 30, 2013, a majority of the existing valuation allowance on our domestic Deferred Income Tax Assets was no longer required. As
of December 31, 2013, we maintain the same position as the previous quarter that the partial release of valuation allowance is still appropriate.
Accordingly, an income tax benefit of $38.9 million was recorded during 2013 related to the reduction of our existing valuation allowance.
44
December 31,
2013
2012
Deferred Income Tax Assets:
Accrued liabilities
$
3,230
$
3,312
Allowance for doubtful accounts
20
21
Inventory valuation
312
382
Capitalized indirect inventory costs
159
207
Stock-based compensation expense
376
612
Net operating loss carryforward
35,635
40,540
Capital loss carryforward
—
4,319
Basis difference on long-lived assets
4,412
5,783
Credit carryforward
3,422
3,088
Other
332
473
Gross Deferred Income Tax Assets
47,898
58,737
Valuation allowance
(12,944
)
(57,230
)
Deferred Income Tax Assets, net of valuation allowance
34,954
1,507
Deferred Income Tax Liabilities:
Prepaid advertising
(793
)
(381
)
Other prepaids
(592
)
(320
)
Basis difference on long-lived assets
(2,938
)
(2,678
)
Undistributed earnings of foreign subsidiaries
(177
)
(136
)
Other
(288
)
(319
)
Deferred Income Tax Liabilities
(4,788
)
(3,834
)
Net Deferred Income Tax Asset
(Liability)
$
30,166
$
(2,327
)
December 31,
2013
2012
Current Deferred Income Tax Assets
$
4,441
$
193
Current Deferred Income Tax Liabilities
—
(
1,275
)
Long-Term Deferred Income Tax Assets
25,725
239
Non-Current Deferred Income Tax Liabilities
—
(
1,484
)
Net Deferred Income Tax Asset
(Liability)
$
30,166
$
(2,327
)