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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 9. Income Taxes The components of the Company’s income (loss) from continuing operations before income taxes and equity in earnings of non-consolidated affiliates by taxing jurisdiction for the years ended December 31, were:
| 2016 |  | 2015 |  | 2014
Income (Loss): |  |  |  |  |  |  |  |
U.S. | $ | (16,661 | ) |  | $ | 23,180 |  |  | $ | 46,728 |
Non-U.S. | (33,055 | ) |  | (40,596 | ) |  | (31,619 | )
| $ | (49,716 | ) |  | $ | (17,416 | ) |  | $ | 15,109 |
The provision (benefit) for income taxes by taxing jurisdiction for the years ended December 31, were:
| 2016 |  | 2015 |  | 2014
Current tax provision |  |  |  |  |  |  |  |
U.S. federal | $ | — |  |  | $ | — |  |  | $ | — |
U.S. state and local | (1,520 | ) |  | 1,375 |  |  | 907 |
Non-U.S. | 2,154 |  |  | 2,465 |  |  | 552 |
| 634 |  |  | 3,840 |  |  | 1,459 |
Deferred tax provision (benefit): |  |  |  |  |  |  |  |
U.S. federal | 5,785 |  |  | 5,359 |  |  | 11,173 |
U.S. state and local | (3,550 | ) |  | 2,877 |  |  | 1,554 |
Non-U.S. | (12,273 | ) |  | (8,315 | ) |  | (4,410 | )
| (10,038 | ) |  | (79 | ) |  | 8,317 |
Income tax provision (benefit) | $ | (9,404 | ) |  | $ | 3,761 |  |  | $ | 9,776 |
A reconciliation of income tax expense (benefit) using the statutory Canadian federal and provincial income tax rate compared with actual income tax expense for the years ended December 31, is as follows:
| 2016 |  | 2015 |  | 2014
Income (loss) from continuing operations before income taxes, equity in non-consolidated affiliates and noncontrolling interest | $ | (49,716 | ) |  | $ | (17,416 | ) |  | $ | 15,109 |
Statutory income tax rate | 26.5 | % |  | 26.5 | % |  | 26.5 | %
Tax expense (benefit) using statutory income tax rate | (13,175 | ) |  | (4,615 | ) |  | 4,004 |
State and foreign taxes | (94 | ) |  | 3,524 |  |  | 1,459 |
Non-deductible stock-based compensation | 1,123 |  |  | 665 |  |  | 1,982 |
Other non-deductible expense | 1,848 |  |  | 163 |  |  | 3,075 |
Change to valuation allowance on items affecting taxable income | 6,605 |  |  | 3,565 |  |  | (643 | )
Effect of the difference in federal and statutory rates | (4,579 | ) |  | 1,906 |  |  | 2,222 |
Noncontrolling interests | (1,287 | ) |  | (2,399 | ) |  | (1,826 | )
Other, net | 155 |  |  | 952 |  |  | (497 | )
Income tax expense (benefit) | $ | (9,404 | ) |  | $ | 3,761 |  |  | $ | 9,776 |
Effective income tax rate | 18.9 | % |  | (21.6 | )% |  | 64.7 | %
The 2016 effective income tax rate was lower than the statutory rate due primarily to non-deductible stock-based compensation of $1,848, an increase in the valuation allowance of $6,605, and the effect of the difference in the U.S. and foreign federal rates and the Canadian statutory rate of $4,579. All of this resulted in a lower tax benefit. The 2015 effective income tax rate was higher than the statutory rate due primarily to non-deductible stock-based compensation of $665 and an increase in the valuation allowance of $3,565, and the effect of the difference in the U.S. and foreign federal rates and the Canadian statutory rate of $1,906. All of this resulted in a tax expense verses a tax benefit. The 2014 effective income tax rate was higher than the statutory rate due primarily to non-deductible stock-based compensation of $1,982, an decrease in the valuation allowance of $643, and the effect of the difference in the U.S. and foreign federal rates and the Canadian statutory rate of $2,222. Income taxes receivable were $1,506 and $615 at December 31, 2016 and 2015, respectively, and were included in other current assets on the balance sheet. Income taxes payable were $4,547 and $7,019 at December 31, 2016 and 2015, respectively, and were included in accrued and other liabilities on the balance sheet. It is the Company’s policy to classify interest and penalties arising in connection with the under payment of income taxes as a component of income tax expense. The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, were as follows:
| 2016 |  | 2015
Deferred tax assets: |  |  |  |  |
Capital assets and other | $ | 6,758 |  |  | $ | 7,334 |
Net operating loss carry forwards | 44,305 |  |  | 39,454 |
Interest deductions | 12,146 |  |  | 12,266 |
Refinancing charge | 7,413 |  |  | 144 |
Goodwill and intangibles | 179,029 |  |  | 178,835 |
Stock compensation | 2,581 |  |  | 3,033 |
Pension plan | 5,095 |  |  | 3,770 |
Unrealized foreign exchange | 15,237 |  |  | 15,548 |
Capital loss carry forwards | 10,957 |  |  | 10,630 |
Accounting reserves | 7,138 |  |  | 6,701 |
Gross deferred tax asset | 290,659 |  |  | 277,715 |
Less: valuation allowance | (248,866 | ) |  | (247,967 | )
Net deferred tax assets | 41,793 |  |  | 29,748 |
Deferred tax liabilities: |  |  |  |  |
Deferred finance charges | (333 | ) |  | (323 | )
Capital assets and other | (388 | ) |  | (797 | )
Goodwill amortization | (109,638 | ) |  | (100,743 | )
Total deferred tax liabilities | (110,359 | ) |  | (101,863 | )
Net deferred tax asset (liability) | $ | (68,566 | ) |  | $ | (72,115 | )
Disclosed as: |  |  |  |  |
Deferred tax assets | $ | 41,793 |  |  | $ | 29,748 |
Deferred tax liabilities | (110,359 | ) |  | (101,863 | )
| $ | (68,566 | ) |  | $ | (72,115 | )
The Company has U.S. federal net operating loss carry forwards of $21,339 and non-U.S. net operating loss carry forwards of $70,517. These carry forwards expire in years 2016 through 2031. The Company also has total indefinite loss carry forwards of $118,413. These indefinite loss carry forwards consist of $35,723 relating to the U.S. and $82,691 which are related to capital losses from the Canadian operations. In addition, the Company has net operating loss carry forwards for various state taxing jurisdictions of approximately $188,367. The Company records a valuation allowance against deferred income tax assets when management believes it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Management considers factors such as the reversal of deferred income tax liabilities, projected future taxable income, the character of the income tax asset, tax planning strategies, changes in tax laws and other factors. A change to these factors could impact the estimated valuation allowance and income tax expense. The valuation allowance has been recorded to reduce our deferred tax asset to an amount that is more likely than not to be realized, and is based upon the uncertainty of the realization of certain U.S., non-U.S. and state deferred tax assets. The increase in the Company’s valuation allowance charged to the statement of operations for each of the years ended December 31, 2016, 2015 and was $6,605, and $3,565, respectively. The Company's valuation allowance decreased $643 in 2014. In addition, a benefit of $1,112 has been recorded in accumulated other comprehensive loss relating to the defined pension plan for the years ended December 31, 2014. There was no benefit or expense related to the defined pension plan recorded in 2015 and 2016. Deferred taxes are not provided for temporary differences representing earnings of subsidiaries that are intended to be permanently reinvested. The potential deferred tax liability associated with these undistributed earnings is not material. During the second quarter of 2017, the Company identified and recorded out-of-period adjustments related to the misapplication of ASC 740 and ASC 850-740 accounting policies as they applied to the calculation of deferred tax liabilities. See Note 2 for details. As of December 31, 2016 and 2015, the Company recorded a liability for unrecognized tax benefits as well as applicable penalties and interest in the amount of $1,543 and $4,200. As of December 31, 2016 and 2015, accrued penalties and interest included in unrecognized tax benefits were approximately $78 and $595. The Company identified an uncertainty relating to the future tax deductibility of certain intercompany fees. To the extent that such future benefit will be established, the resolution of this position will have no effect with respect to the financial statements. If these unrecognized tax benefits were to be recognized, it would affect the Company’s effective tax rate.
Changes in the Company’s reserve is as follows: |
Balance at December 31, 2013 | $ | 3,073 |
Charges to income tax expense | — |
Balance at December 31, 2014 | 3,073 |
Charges to income tax expense | 960 |
Settlement of uncertainty | (428 | )
Balance at December 31, 2015 | 3,605 |
Charges to income tax expense | (1,261 | )
Settlement of uncertainty | (879 | )
Balance at December 31, 2016 | $ | 1,465 |
The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company has completed U.S. federal tax audits through 2013 and has completed a non-U.S. tax audit through 2009.

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- 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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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