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Income Tax | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Loss from continuing operations before income taxes consisted of the following:
| (Dollars in thousands)
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
United States | $ | (4,355 | ) |  | $ | (6,255 | ) |  | $ | (36,808 | )
Canada | (1,479 | ) |  | (867 | ) |  | (9,290 | )
| $ | (5,834 | ) |  | $ | (7,122 | ) |  | $ | (46,098 | )
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,
| 2014 |  | 2013 |  | 2012
Current income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | (377 | ) |  | $ | (864 | ) |  | $ | (740 | )
U.S. state | 79 |  |  | 84 |  |  | 215 |
Canada | 525 |  |  | 639 |  |  | 1,016 |
Total | $ | 227 |  |  | $ | (141 | ) |  | $ | 491 |
Deferred income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | — |  |  | $ | — |  |  | $ | 16,159 |
U.S. state | — |  |  | — |  |  | 1,160 |
Canada | — |  |  | — |  |  | 125 |
Total | $ | — |  |  | $ | — |  |  | $ | 17,444 |
Total income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | (377 | ) |  | $ | (864 | ) |  | $ | 15,419 |
U.S. state | 79 |  |  | 84 |  |  | 1,375 |
Canada | 525 |  |  | 639 |  |  | 1,141 |
Total | $ | 227 |  |  | $ | (141 | ) |  | $ | 17,935 |
The reconciliation between the effective income tax rate and the statutory federal rate for continuing operations was as follows:
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Statutory Federal rate | 35.0% |  |  | 35.0 | % |  | 35.0% |
Increase (decrease) resulting from: |  |  |  |  |
Change in valuation allowance | (26.9 | ) |  | (30.3 | ) |  | (72.4 | )
Change in uncertain tax positions | (9.0 | ) |  | (9.8 | ) |  | (4.4 | )
Executive life insurance | 2.3 |  |  | 5.1 |  |  | 0.8 |
State and local taxes, net | 2.8 |  |  | 3.2 |  |  | 2.6 |
Meals & entertainment | (2.6 | ) |  | (1.9 | ) |  | (0.3 | )
Provision to return differences | (3.2 | ) |  | 1.5 |  |  | 0.9 |
Other items, net | (2.3 | ) |  | (0.8 | ) |  | (1.1 | )
Provision for income taxes | (3.9 | )% |  | 2.0 | % |  | (38.9 | )%
Income taxes paid for the years ended December 31, 2014, 2013, and 2012 totaled $0.2 million. In 2014, 2013 and 2012 the Company received $0.1 million, $0.7 million and $3.4 million, respectively, in income tax refunds primarily related to the carryback of net operating losses and recovery of income tax overpayments in prior years. At December 31, 2014, the Company had $52.5 million of U.S. Federal net operating loss carryforwards which are subject to expiration beginning in 2030, and $0.5 million of foreign tax credit carryforwards which are subject to expiration beginning in 2020. In addition, the Company had $50.3 million of various state net operating loss carryforwards which expire at varying dates through 2033. Primarily due to the cumulative losses incurred in recent years, management 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 2014 and 2013 the Company increased its deferred tax valuation allowance by $0.8 million and $1.6 million, respectively. The tax valuation allowance will remain 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,
| 2014 |  | 2013
Deferred tax assets: |  |  |
Compensation and benefits | $ | 11,926 |  |  | $ | 10,883 |
Net operating loss carryforward | 20,652 |  |  | 18,453 |
Inventory reserve | 2,723 |  |  | 2,734 |
Accounts receivable reserve | 287 |  |  | 353 |
Other | 3,372 |  |  | 4,113 |
Total deferred tax assets | 38,960 |  |  | 36,536 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 1,156 |  |  | 53 |
Other | 1,078 |  |  | 590 |
Total deferred liabilities | 2,234 |  |  | 643 |
Net deferred tax assets before valuation allowance | 36,726 |  |  | 35,893 |
Valuation allowance | (36,675 | ) |  | (35,834 | )
Net deferred tax assets | $ | 51 |  |  | $ | 59 |
Net deferred tax assets: |  |  |
Net current deferred tax assets | $ | — |  |  | $ | 5 |
Net noncurrent deferred tax assets | 51 |  |  | 54 |
Net deferred tax assets | $ | 51 |  |  | $ | 59 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| (Dollars in thousands)
| December 31,
| 2014 |  | 2013
Balance at beginning of year | $ | 2,678 |  |  | $ | 2,127 |
Additions for tax positions of current year | 287 |  |  | 462 |
Additions for tax positions of prior years | 133 |  |  | 89 |
Reductions for tax positions of prior year | (134 | ) |  | — |
Balance at end of year | $ | 2,964 |  |  | $ | 2,678 |
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, 2014 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, 2014, the Company was subject to U.S Federal income tax examinations for the years 2011 through 2013 and income tax examinations from various other jurisdictions for the years 2006 through 2013. The Company was subject to an examination by the Canada Revenue Authority ("CRA") for the years 2006 through 2010. The CRA examination was completed during May 2013 and resulted in proposed adjustments which amount to $1.3 million of additional tax for the 2008 and 2009 tax years. The Company does not agree with these adjustments and filed a request with Competent Authority programs in both the U.S. and Canada in October, 2013. The Competent Authority program assists taxpayers with respect to matters covered in the mutual agreement procedure provisions of tax treaties. Management has not recorded a reserve and is confident that the Company will prevail in this matter. The Company is unable to establish an estimated time frame in which this issue will be resolved through Competent Authority.

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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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