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INCOME TAXES | 12 Months Ended
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Dec. 31, 2013
INCOME TAXES [Abstract] |
INCOME TAXES |
10. | INCOME TAXES
The components of income (loss) from continuing operations before income taxes are as follows (in millions):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
United States |  | $ | (18.8 | ) |  | $ | (66.5 | ) |  | $ | 43.5 |
Foreign |  |  | (3.0 | ) |  |  | 24.9 |  |  |  | 35.5 |
Total |  | $ | (21.8 | ) |  | $ | (41.6 | ) |  | $ | 79.0 |
The (benefit) provision for income taxes consists of the following (in millions):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (8.2 | ) |  | $ | (5.4 | ) |  | $ | 13.6 |
State |  |  | 0.6 |  |  |  | 0.3 |  |  |  | 2.2 |
Foreign |  |  | 3.2 |  |  |  | 8.1 |  |  |  | 8.4 |
Total current |  |  | (4.4 | ) |  |  | 3.0 |  |  |  | 24.2 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 20.5 |  |  |  | (16.5 | ) |  |  | 0.5 |
State |  |  | 4.8 |  |  |  | (3.3 | ) |  |  | 0.4 |
Foreign |  |  | 1.1 |  |  |  | (16.8 | ) |  |  | (0.7 | )
Total deferred |  |  | 26.4 |  |  |  | (36.6 | ) |  |  | 0.2 |
TOTAL |  | $ | 22.0 |  |  | $ | (33.6 | ) |  | $ | 24.4 |
Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. The Company recorded tax (benefit) expense of $0.0 million, $(0.2) million and $0.1 million in 2013, 2012 and 2011, respectively, related to discontinued operations. A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Income tax at Federal statutory rate |  | $ | (7.6 | ) |  |  | (35.0 | )% |  | $ | (14.5 | ) |  |  | (35.0 | )% |  | $ | 27.6 |  |  |  | 35.0 | %
Foreign taxes at rates different from the U.S. rate |  |  | 2.3 |  |  |  | 10.6 |  |  |  | (3.7 | ) |  |  | (8.9 | ) |  |  | (0.9 | ) |  |  | (1.1 | )
State and local income taxes, net of federal tax benefit |  |  | (0.3 | ) |  |  | (1.4 | ) |  |  | (2.1 | ) |  |  | (5.0 | ) |  |  | 1.3 |  |  |  | 1.6 |
Changes in valuation allowances |  |  | 28.9 |  |  |  | 132.6 |  |  |  | (13.3 | ) |  |  | (31.9 | ) |  |  | (3.7 | ) |  |  | (4.7 | )
Change in deferred tax liability |  |  | (1.2 | ) |  |  | (5.5 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Non-deductible items |  |  | 0.1 |  |  |  | 0.5 |  |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.1 |  |  |  | 0.1 |
Other items, net |  |  | (0.2 | ) |  |  | (0.9 | ) |  |  | (0.1 | ) |  |  | (0.2 | ) |  |  | - |  |  |  | - |
Income tax at Federal statutory rate |  | $ | 22.0 |  |  |  | 100.9 |  |  | $ | (33.6 | ) |  |  | (80.8 | )% |  | $ | 24.4 |  |  |  | 30.9 | %
The deferred tax assets and liabilities are comprised of the following (in millions):
|  | December 31, |
|  | 2013 |  |  | 2012 |
Assets: |  |  |  |  |  |
Current: |  |  |  |  |  |
Accrued expenses and other liabilities |  | $ | 10.8 |  |  | $ | 12.1 |
Inventory |  |  | 4.6 |  |  |  | 6.2 |
Valuation allowances |  |  | (11.2 | ) |  |  | (2.2 | )
Total current assets |  | $ | 4.2 |  |  | $ | 16.1 |
Non-current: |  |  |  |  |  |  |  |
Net operating loss and credit carryforwards |  | $ | 30.1 |  |  | $ | 25.7 |
Depreciation |  |  | 2.0 |  |  |  | 2.6 |
Intangible & other |  |  | 15.2 |  |  |  | 22.4 |
Valuation allowances |  |  | (28.5 | ) |  |  | (8.9 | )
Total non-current assets |  | $ | 18.8 |  |  | $ | 41.8 |
Liabilities : |  |  |  |  |  |  |  |
Current : |  |  |  |  |  |  |  |
Deductible assets |  | $ | 0.7 |  |  | $ | 2.5 |
Other |  |  | 1.2 |  |  |  | - |
Total current liabilities |  | $ | 1.9 |  |  | $ | 2.5 |
Non-current: |  |  |  |  |  |  |  |
Amortization |  | $ | 1.1 |  |  | $ | 6.2 |
Depreciation |  |  | 1.8 |  |  |  | 5.4 |
Other |  |  | 0.6 |  |  |  | - |
Total non-current liabilities |  | $ | 3.5 |  |  | $ | 11.6 |
During the current year the Company recorded valuation allowances against deferred tax assets of approximately $28.9 million. These valuation allowances were recorded against U.S. federal deferred tax assets of $20.5 million, state deferred tax assets of $3.9 million and foreign deferred tax assets of $4.5 million. These valuation allowances were recorded primarily as a result of Managements’ belief that the deferred assets are not likely to be realized due to recent losses. The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of approximately $153.4 million as of December 31, 2013, since these earnings are considered indefinitely reinvested. The Company has gross foreign net operating loss carryforwards of $67.4 million which expire through 2030. The Company records these benefits as assets to the extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized. As of December 31, 2013, the Company has approximately $1.2 million in federal tax credit carryforwards expiring in years through 2023 and various amounts of state and foreign net operating loss carryforwards expiring through 2032. The Company has recorded valuation allowances of approximately $39.7 million, including valuations against the federal and state deductibility of temporary differences and net operating losses of $20.5 million and $8.7 million respectively, foreign tax credits of $1.2 million and tax effected temporary differences and net operating loss carryforwards in foreign jurisdictions of $9.3 million. The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company’s federal income tax returns have been audited through 2009. The Company has not signed any consents to extend the statute of limitations for any subsequent years. The Company’s significant state tax returns have been audited through 2006. The Company considers its significant tax jurisdictions in foreign locations to be the United Kingdom, Canada, France, Italy and Germany. The Company remains subject to examination in the United Kingdom for years after 2011, in Canada for years after 2008, in France for years after 2011, in Italy for years after 2008, in Netherlands for years after 2006 and in Germany for years after 2007. In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts in excess of accruals, our effective tax rate in a given financial statement period could be affected. As of December 31, 2013 the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interests or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2013 or 2012.

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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 -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=26873400&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 + Details
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