XML 55 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Taxes [Abstract] |
Income Taxes | Note 8— Income Taxes The provision (benefit) for income taxes from continuing operations consists of:
|  | Year ended December 31, |
|  | (in thousands) |
|  | 2013 |  |  | 2012 |
Current income tax: |  |  |  |  |  |
Federal |  | $ | (16 | ) |  | $ | (206 | )
State |  |  | 27 |  |  |  | 160 |
Foreign |  |  | 1,087 |  |  |  | 582 |
|  |  | 1,098 |  |  |  | 536 |
Deferred income tax: |  |  |  |  |  |  |  |
Federal |  |  | (1,813 | ) |  |  | (1,650 | )
State |  |  | (65 | ) |  |  | (300 | )
|  |  | (1,878 | ) |  |  | (1,950 | )
Benefit for income taxes |  | $ | (780 | ) |  | $ | (1,414 | )
Deferred tax benefit related to discontinued operations was $108,000 during fiscal year 2013 compared to tax expense of $793,000 during fiscal year 2012. Deferred tax liabilities (assets) are comprised of the following at:
|  | December 31, |
|  | (in thousands) |
|  | 2013 |  |  | 2012 |
Deferred tax liabilities: |  |  |  |  |  |
Software development costs |  | $ | 5,042 |  |  | $ | 3,740 |
Gross deferred tax liabilities |  |  | 5,042 |  |  |  | 3,740 |
Allowances for bad debts and inventory |  |  | (3,819 | ) |  |  | (3,640 | )
Capitalized inventory costs |  |  | (122 | ) |  |  | (125 | )
Intangible assets |  |  | (3,223 | ) |  |  | (4,119 | )
Employee benefit accruals |  |  | (1,764 | ) |  |  | (1,805 | )
Federal net operating loss carryforward |  |  | (10,524 | ) |  |  | (8,122 | )
State net operating loss carryforward |  |  | (1,200 | ) |  |  | (957 | )
Tax credit carryforwards |  |  | (4,979 | ) |  |  | (4,006 | )
Foreign currency |  |  | (33 | ) |  |  | (147 | )
Other |  |  | (585 | ) |  |  | (334 | )
Gross deferred tax assets |  |  | (26,249 | ) |  |  | (23,255 | )
Less valuation allowance |  |  | 2,377 |  |  |  | 2,198 |
Net deferred tax assets |  | $ | (18,830 | ) |  | $ | (17,317 | )
The Company has Federal tax credit carryforwards of $4.5 million that expire in various tax years from 2014 to 2033. The Company has a Federal operating loss carryforward of $31.0 million that expires in various tax years through 2033. Of the operating loss carryforward, $1.5 million will result in a benefit within additional paid in capital when realized. The Company also has state tax credit carryforwards of $307,000 and state net operating loss carryforwards of $20.4 million which expire in various tax years through 2033. In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As a result of this analysis and based on the current year’s taxable loss, management determined that it is more likely than not that the future benefit associated with the foreign tax credit carryforwards and certain state tax credits and loss carryforwards will not be realized. As a result, the Company recorded tax expense associated with an additional deferred tax asset valuation allowance of $179,000 and $44,000 for 2013 and 2012, respectively. The Company records the benefits relating to uncertain tax positions only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. Tax positions that meet the more likely than not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. At December 31, 2013, the Company’s reserve for uncertain tax positions is not material and the Company believes it has adequately provided for its tax-related liabilities. The Company is no longer subject to United States federal income tax examinations for years before 2008. The provision (benefit) for income taxes differed from the provision computed by applying the Federal statutory rate to income (loss) from continuing operations before taxes due to the following:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |
Federal statutory tax rate |  |  | (34.0 | )% |  |  | (34.0 | )%
State taxes |  |  | 1.7 |  |  |  | (6.2 | )
Non deductible expenses |  |  | 61.3 |  |  |  | 6.2 |
Tax credits |  |  | (378.2 | ) |  |  | 0.0 |
Foreign subsidiary liquidation |  |  | 0.0 |  |  |  | (6.3 | )
Foreign income tax rate differential |  |  | (103.0 | ) |  |  | (5.1 | )
Valuation allowance |  |  | 84.8 |  |  |  | 1.3 |
Other |  |  | (2.4 | ) |  |  | (0.4 | )
|  |  | (369.8 | )% |  |  | (44.5 | )%

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration