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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
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, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
United States |  | $ | 15.9 |  |  | $ | (14.5 | ) |  | $ | 1.9 |
Foreign |  |  | (13.8 | ) |  |  | (20.3 | ) |  |  | (22.0 | )
Total |  | $ | 2.1 |  |  | $ | (34.8 | ) |  | $ | (20.1 | )
The (benefit) provision for income taxes from continuing operations consists of the following (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | 3.1 |  |  | $ | 7.6 |
State |  |  | 1.2 |  |  |  | 0.6 |  |  |  | 0.4 |
Foreign |  |  | 4.4 |  |  |  | 4.3 |  |  |  | 3.2 |
Total current |  |  | 5.6 |  |  |  | 8.0 |  |  |  | 11.2 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 0.1 |  |  |  | 0.1 |  |  |  | - |
State |  |  | 1.1 |  |  |  | - |  |  |  | (0.3 | )
Foreign |  |  | 3.2 |  |  |  | 5.4 |  |  |  | 1.0 |
Total deferred |  |  | 4.4 |  |  |  | 5.5 |  |  |  | 0.7 |
TOTAL |  | $ | 10.0 |  |  | $ | 13.5 |  |  | $ | 11.9 |
Tax benefit from discontinued operations was $0.0 million, $(3.3) million and $(7.0) million for the years ended December 31, 2016, 2015 and 2014, respectively. Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. 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, |
|  | 2016 |  |  |  |  |  | 2015 |  |  |  |  |  | 2014 |  |  |  |
Income tax at Federal statutory rate |  | $ | 0.7 |  |  |  | (35.0 | )% |  | $ | (12.2 | ) |  |  | (35.0 | )% |  | $ | (7.1 | ) |  |  | (35.0 | )%
Foreign taxes at rates different from the U.S. rate |  |  | 5.2 |  |  |  | (247.6 | ) |  |  | 7.7 |  |  |  | 22.2 |  |  |  | 5.2 |  |  |  | 25.9 |
State and local income taxes, net of federal tax benefit |  |  | (0.6 | ) |  |  | 28.6 |  |  |  | (1.4 | ) |  |  | (3.9 | ) |  |  | 1.6 |  |  |  | 8.2 |
Impact of state rate changes |  |  | 1.4 |  |  |  | (66.7 | ) |  |  | 0.7 |  |  |  | 1.9 |  |  |  | - |  |  |  | - |
Changes in valuation allowances |  |  | 2.8 |  |  |  | (133.3 | ) |  |  | 18.8 |  |  |  | 54.2 |  |  |  | 12.4 |  |  |  | 61.5 |
Change in deferred tax liability |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Non-deductible items |  |  | 0.4 |  |  |  | (19.0 | ) |  |  | 0.1 |  |  |  | 0.2 |  |  |  | - |  |  |  | - |
Other items, net |  |  | 0.1 |  |  |  | (4.8 | ) |  |  | (0.2 | ) |  |  | (0.8 | ) |  |  | (0.2 | ) |  |  | (1.1 | )
Income tax |  | $ | 10.0 |  |  |  | (477.8 | )% |  | $ | 13.5 |  |  |  | 38.8 | % |  | $ | 11.9 |  |  |  | 59.5 | %
The deferred tax assets and liabilities are comprised of the following (in millions):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Assets: |  |  |  |  |  |
Accrued expenses and other liabilities |  | $ | 12.2 |  |  | $ | 12.4 |
Inventory |  |  | 1.5 |  |  |  | 5.6 |
Depreciation |  |  | 0.6 |  |  |  | 0.8 |
Intangible & other |  |  | 13.5 |  |  |  | 13.0 |
Net operating loss and credit carryforwards |  |  | 66.4 |  |  |  | 57.4 |
Valuation allowances |  |  | (89.7 | ) |  |  | (80.6 | )
Total non-current deferred tax assets |  |  | 4.5 |  |  |  | 8.6 |
Liabilities : |  |  |  |  |  |  |  |
Non-current: |  |  |  |  |  |  |  |
Other |  | $ | 0.5 |  |  | $ | 0.4 |
Total non-current liabilities |  | $ | 0.5 |  |  | $ | 0.4 |
During the current year the Company recorded valuation allowances against deferred tax assets of approximately $9.1 million. These valuation allowances were recorded against U.S. federal deferred tax assets of approximately $4.5 million, foreign deferred tax assets of $5.6 million and state deferred tax asset valuation allowances of approximately $(1.0) million. These valuation allowances were recorded primarily as a result of the Company’s 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 $36.4 million as of December 31, 2016, since these earnings are considered indefinitely reinvested. The Company has gross foreign net operating loss carryforwards of $133.0 million which expire through 2032 and gross U.S. federal net operating loss carry forwards of $72.4 million which expire through 2036. 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, 2016, the Company has approximately $1.6 million in federal tax credit carryforwards expiring in years through 2026 and various amounts of state and foreign net operating loss carryforwards expiring through 2036. The Company has recorded valuation allowances of approximately $89.7 million, including valuations against the federal and state deductibility of temporary differences including net operating losses of $48.1 million and $8.8 million respectively, foreign tax credits of $1.6 million and tax effected temporary differences and net operating loss carryforwards in foreign jurisdictions of $31.2 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 2013. The Company has not signed any consent to extend the statute of limitations for any subsequent years. The Company’s significant state tax returns have been audited through 2009. The Company considers its significant tax jurisdictions in foreign locations to be the United Kingdom, Canada, France, Hungary, Italy and the Netherlands. The Company remains subject to examination in the United Kingdom for years after 2013, in Canada for years after 2013, in France for years after 2012, in Italy for years after 2012 and in the Netherlands for years after 2008. 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, 2016 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 2016, 2015 or 2014.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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