Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income tax provision (benefit) for the years ended December 31, 2013, 2012 and 2011 consists of the following (in thousands):


	Year Ended December 31,
	2013			2012		2011
Current income tax provision (benefit):
Federal	$	1,745		$	303	$	(2,738	)
State		404			88		(32	)

		2,149			391		(2,770	)

Deferred income tax provision (benefit):
Federal		(11,182	)		510		164
State		(1,516	)		108		1

		(12,698	)		618		165

Total income tax provision (benefit)	$	(10,549	)	$	1,009	$	(2,605	)

Reconciliation of Differences between Income Tax Provision (benefit) and Income Tax Determined by Applying US Federal Statutory Rate

The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal statutory rate to income before taxes as a result of the following (in thousands):


	Year Ended December 31,
	2013			2012			2011
U.S. federal statutory taxes	$	8,417		$	1,305		$	(4,826	)
State and local taxes, net of U.S. federal benefit		1,061			(418	)		(650	)
Permanent items		225			198			96
Federal credits		(566	)		(54	)		(59	)
Other		244			46			(275	)
Increase (decrease) in valuation allowance		(19,930	)		(68	)		3,109

Total income tax provision (benefit)	$	(10,549	)	$	1,009		$	(2,605	)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities as of December 31, 2013 and 2012 consist of the following (in thousands):


	As of December 31,
	2013			2012
Deferred tax assets:
Net operating losses	$	483		$	9,962
Warranty reserve		16,085			11,406
Stock-based compensation		2,383			2,654
Accruals not currently deductible and other		6,210			8,193
Inventories		3,843			5,008
State tax credit carryforwards		3,714			4,105

Gross deferred tax assets, before valuation allowance		32,718			41,328
Valuation allowance		(4,201	)		(24,131	)

Gross deferred tax assets, after valuation allowance		28,517			17,197

Deferred tax liabilities:
Depreciation and other		(19,380	)		(20,758	)

Gross deferred tax liabilities		(19,380	)		(20,758	)

Net deferred tax asset (liability)	$	9,137		$	(3,561	)

Changes in Unrecognized Tax Benefits

As of December 31, 2013, the Company has effectively eliminated all unrecognized tax benefits. The following table illustrates changes to recorded unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 (in thousands):


	Year Ended December 31,
	2013		2012			2011
Unrecognized tax benefits balance at January 1	$	—	$	60		$	3,126
Gross increases related to prior year tax positions		—		—			1
Gross decreases related to prior year tax positions		—		(36	)		(2,760	)
Settlements		—		(22	)		(245	)
Lapse of statute of limitations		—		(2	)		(62	)

Unrecognized tax benefits balance at December 31	$	—	$	—		$	60