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Income Tax | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes consisted of the following:
| (Dollars in thousands)
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
United States | $ | (34,690 | ) |  | $ | (5,100 | ) |  | $ | 14,269 |
Canada | (9,290 | ) |  | (976 | ) |  | 2,427 |
| $ | (43,980 | ) |  | $ | (6,076 | ) |  | $ | 16,696 |
Provision (benefit) for income taxes from continuing operations for the years ended December 31, consisted of the following:
| (Dollars in thousands)
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Current income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | 62 |  |  | $ | 464 |  |  | $ | 3,681 |
U.S. state | 215 |  |  | 295 |  |  | 987 |
Canada | 1,016 |  |  | (190 | ) |  | 366 |
Total | $ | 1,293 |  |  | $ | 569 |  |  | $ | 5,034 |
Deferred income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | 16,159 |  |  | $ | (2,187 | ) |  | $ | 1,648 |
U.S. state | 1,160 |  |  | (155 | ) |  | 217 |
Canada | 125 |  |  | 86 |  |  | 207 |
Total | $ | 17,444 |  |  | $ | (2,256 | ) |  | $ | 2,072 |
Total income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | 16,221 |  |  | $ | (1,723 | ) |  | $ | 5,329 |
U.S. state | 1,375 |  |  | 140 |  |  | 1,204 |
Canada | 1,141 |  |  | (104 | ) |  | 573 |
Total | $ | 18,737 |  |  | $ | (1,687 | ) |  | $ | 7,106 |
The reconciliation between the effective income tax rate and the statutory federal rate for continuing operations was as follows:
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Statutory Federal rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increase (decrease) resulting from: |  |  |  |  |
State and local taxes, net | 2.6 |  |  | (1.6 | ) |  | 1.2 |
Executive life insurance | 0.8 |  |  | (1.0 | ) |  | (1.8 | )
Fines and penalties | 0.1 |  |  | 0.3 |  |  | (0.2 | )
Meals & entertainment | (0.3 | ) |  | (3.0 | ) |  | 0.8 |
Capital loss carryforward | — |  |  | — |  |  | 3.7 |
Deferred tax expense | — |  |  | 1.0 |  |  | 1.2 |
Change in valuation allowance | (76.0 | ) |  | (1.0 | ) |  | 4.1 |
Change in uncertain tax positions | (4.6 | ) |  | (1.6 | ) |  | (1.4 | )
Provision to return differences | 1.0 |  |  | (0.3 | ) |  | 1.4 |
Other items, net | (1.2 | ) |  | — |  |  | (1.4 | )
Provision for income taxes | (42.6 | )% |  | 27.8 | % |  | 42.6 | %
Income taxes paid for the years ended December 31, 2012, 2011, and 2010 amounted to $0.2 million, $2.6 million and $5.3 million, respectively. In 2012, 2011 and 2010, the Company received $3.4 million, $3.3 million and $5.8 million, respectively, in income tax refunds primarily related to carryback of net operating losses and recovery of income tax overpayments in prior years. At December 31, 2012, the Company had $65.6 million of net operating losses and tax credit carryforwards. The U.S. Federal carryforwards consist of $31.7 million of net operating losses which are subject to expiration in 2030 and $0.5 million of foreign tax credit carryforwards which are subject to expiration in 2020. In addition, the Company had $33.4 million of state net operating loss carryforwards which expire at varying dates through 2030. Primarily due to the cumulative losses that the Company recorded over the past several quarters, the Company determined that it was more likely than not that the Company will not be able to utilize its deferred tax assets to offset future taxable income. Therefore, in 2012, the Company increased its deferred tax valuation allowance by $33.3 million. Substantially all future taxable income will be subject to this tax valuation allowance until the Company can establish that the recoverability of its deferred tax assets is more certain. Deferred income tax assets and liabilities contain the following temporary differences:
| (Dollars in thousands)
| December 31,
| 2012 |  | 2011
Deferred tax assets: |  |  |
Compensation and benefits | $ | 14,101 |  |  | $ | 16,048 |
Net operating loss carryforward | 12,710 |  |  | 4,286 |
Inventory reserve | 3,654 |  |  | 2,472 |
Accounts receivable reserve | 657 |  |  | 723 |
Property, plant and equipment | — |  |  | 879 |
Other | 4,694 |  |  | 1,147 |
Total deferred tax assets | 35,816 |  |  | 25,555 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 738 |  |  | — |
Goodwill | — |  |  | 6,557 |
Other | 728 |  |  | 480 |
Total deferred liabilities | 1,466 |  |  | 7,037 |
Net deferred assets before valuation allowance | 34,350 |  |  | 18,518 |
Valuation allowance | (34,278 | ) |  | (938 | )
Net deferred assets | $ | 72 |  |  | $ | 17,580 |
Net deferred tax assets: |  |  |
Net current deferred tax assets | $ | 17 |  |  | $ | 5,716 |
Net noncurrent deferred tax assets | 55 |  |  | 11,864 |
Net deferred assets | $ | 72 |  |  | $ | 17,580 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| (Dollars in thousands)
| December 31,
| 2012 |  | 2011
Balance at beginning of year | $ | 92 |  |  | $ | — |
Additions for tax positions of current year | 1,261 |  |  | 92 |
Additions for tax positions of prior years | 835 |  |  | — |
Reductions for tax positions of prior years | (92 | ) |  | — |
Settlements | — |  |  | — |
Balance at end of year | $ | 2,096 |  |  | $ | 92 |
The recognition of the unrecognized tax benefits would have a favorable effect on the effective tax rate. Due to the uncertainty of both timing and resolution of income tax examinations, the Company is unable to determine whether any amounts included in the December 31, 2012 balance of unrecognized tax benefits represent tax positions that could significantly change during the next twelve months. The Company and its subsidiaries are subject to U.S. Federal income tax as well as income tax of multiple state and foreign jurisdictions. As of December 31, 2012, the Company was subject to income tax examinations in various jurisdictions for the tax years 2006 through 2011. During 2012, the Company completed U.S. Federal income tax examinations through tax year 2009. The Company is currently under examination by the Canada Revenue Authority for the years 2006 through 2010 and the Company is complying with the information requests and procedural requirements of the examination.

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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 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 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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: 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. Reference 6: 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 7: 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 8: 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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