Nautilus 2013 Annual Report Download - page 53

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Income Tax Carryforwards
As of December 31, 2013 , we had the following income tax carryforwards (in millions):
The timing and manner in which we are permitted to utilize our net operating loss carryforwards may be limited by Internal Revenue Code
Section 382, Limitation on Net Operating Loss Carry-forwards and Certain Built-in-Losses Following Ownership Change .
Unrecognized Tax Benefits
Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in
thousands):
Of the $2.0 million of gross unrecognized tax benefits from uncertain tax positions outstanding as of December 31, 2013 , $1.6 million
would
affect our effective tax rate if recognized.
We recognize tax-related interest and penalties as a component of income tax expense. We had $1.6 million
cumulative liability for interest and
penalties related to uncertain tax positions for both years 2013 and 2012.
Our U.S. federal income tax returns for 2009 through 2013 are open to review by the U.S. Internal Revenue Service. Our state income tax returns
for 2006 through 2013 are open to review, depending on the respective statute of limitation in each state. In addition, we file income tax returns
in several non-U.S. jurisdictions with varying statutes of limitation.
As of December 31, 2013 , we believe it is reasonably likely that, within the next 12 months, $0.1 million
of previously unrecognized tax
benefits related to certain U.S. and non-U.S. filing positions will be recognized as statutes of limitation expire.
(12) STOCK-BASED PLANS AND STOCK-BASED COMPENSATION
2005 Long-Term Incentive Plan
Our 2005 Long-Term Incentive Plan (the “2005 Plan”),
which is administered by the Compensation Committee of the Board of Directors,
authorizes us to grant various types of stock-
based awards including: stock options, stock appreciation rights, restricted stock, restricted stock
units ("RSUs") and performance stock units ("PSUs"). Stock options granted under the 2005 Plan shall not have an exercise price less than the
fair market value of our common stock on the date of the grant. The exercise price of a stock option or stock appreciation right may not be
reduced without shareholder approval. Stock options generally vest over periods of
46
Amount
Expires in
Net operating loss carryforwards:
U.S. Federal
$
64.4
2029 - 2031
U.S. State
98.3
2014 - 2031
Germany
11.2
Indefinite
Switzerland
20.4
2014 - 2020
China
3.8
2014 - 2016
Italy
2.6
2014 - 2017
Income tax credit carryforwards:
U.S. Federal
2.9
2018 - 2033
U.S. State
0.4
2019 - 2022
Year Ended December 31,
2013
2012 2011
Unrecognized tax benefits, beginning of year
$
2,530
$
4,376
$
3,342
Additions for tax positions taken in prior years
166
—
1,017
Reductions for tax positions taken in prior years
(472
)
(972
)
—
Additions for tax positions related to the current year
54
—
73
Lapses of statutes of limitations
(314
)
(874
)
(56
)
Unrecognized tax benefits, end of year
$
1,964
$
2,530
$
4,376