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Income Tax | 12 Months Ended
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Dec. 31, 2015
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,
| 2015 |  | 2014 |  | 2013
United States | $ | 3,583 |  |  | $ | (4,355 | ) |  | $ | (6,255 | )
Canada | (2,431 | ) |  | (1,479 | ) |  | (867 | )
| $ | 1,152 |  |  | $ | (5,834 | ) |  | $ | (7,122 | )
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,
| 2015 |  | 2014 |  | 2013
Current income tax expense (benefit): |  |  |  |  |
U.S. Federal | $ | (461 | ) |  | $ | (377 | ) |  | $ | (864 | )
U.S. state | 75 |  |  | 79 |  |  | 84 |
Canada | 1,241 |  |  | 525 |  |  | 639 |
Total | $ | 855 |  |  | $ | 227 |  |  | $ | (141 | )
Since substantially all of our deferred tax assets are subject to a tax valuation allowance, the Company's deferred income tax expense for the each of the three years ended December 31, 2015, 2014 and 2013 was immaterial. The reconciliation between the effective income tax rate and the statutory federal rate for continuing operations was as follows:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Statutory Federal rate | 35.0% |  |  | 35.0 | % |  | 35.0% |
Increase (decrease) resulting from: |  |  |  |  |
Change in valuation allowance | (86.4 | ) |  | (26.9 | ) |  | (30.3 | )
Change in uncertain tax positions | 56.2 |  |  | (9.0 | ) |  | (9.8 | )
Provision to return differences | 24.4 |  |  | (3.2 | ) |  | 1.5 |
Foreign tax rate differential | 17.9 |  |  | (2.2 | ) |  | (1.1 | )
Meals & entertainment | 11.6 |  |  | (2.6 | ) |  | (1.9 | )
State and local taxes, net | 10.4 |  |  | 2.8 |  |  | 3.2 |
Alternative minimum tax | 7.6 |  |  | — |  |  | — |
Executive life insurance | 2.4 |  |  | 2.3 |  |  | 5.1 |
Other items, net | (4.9 | ) |  | (0.1 | ) |  | 0.3 |
Provision for income taxes | 74.2 | % |  | (3.9 | )% |  | 2.0 | %
Income taxes paid for the years ended December 31, 2015, 2014, and 2013 totaled $0.1 million, $0.2 million and $0.2 million, respectively. In 2014 and 2013 the Company received $0.1 million and $0.7 million, respectively, in income tax refunds primarily related to recovery of income tax overpayments in prior years. At December 31, 2015, the Company had $49.8 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 $48.5 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. In 2015, 2014 and 2013 the Company decreased its deferred tax valuation allowance by $0.2 million, $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. During 2015, as the result of a small acquisition, the Company recorded $0.3 million of tax deductible goodwill that may result in a tax benefit in future periods. Deferred income tax assets and liabilities contain the following temporary differences:
| (Dollars in thousands)
| December 31,
| 2015 |  | 2014
Deferred tax assets: |  |  |
Net operating loss carryforward | $ | 19,336 |  |  | $ | 20,652 |
Compensation and benefits | 11,979 |  |  | 11,926 |
Inventory reserve | 2,726 |  |  | 2,723 |
Capital loss carryforward | 2,210 |  |  | — |
Accounts receivable reserve | 218 |  |  | 287 |
Other | 2,073 |  |  | 3,372 |
Total deferred tax assets | 38,542 |  |  | 38,960 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 1,100 |  |  | 1,156 |
Other | 875 |  |  | 1,078 |
Total deferred liabilities | 1,975 |  |  | 2,234 |
Net deferred tax assets before valuation allowance | 36,567 |  |  | 36,726 |
Valuation allowance | (36,516 | ) |  | (36,675 | )
Net deferred tax assets | $ | 51 |  |  | $ | 51 |
Net deferred tax assets: |  |  |
Net current deferred tax assets | $ | — |  |  | $ | — |
Net noncurrent deferred tax assets | 51 |  |  | 51 |
Net deferred tax assets | $ | 51 |  |  | $ | 51 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| (Dollars in thousands)
| December 31,
| 2015 |  | 2014
Balance at beginning of year | $ | 2,964 |  |  | $ | 2,678 |
Additions for tax positions of current year | 146 |  |  | 287 |
Additions for tax positions of prior years | 26 |  |  | 133 |
Reductions for tax positions of prior year | — |  |  | (134 | )
Balance at end of year | $ | 3,136 |  |  | $ | 2,964 |
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, 2015 balance of unrecognized tax benefits represent tax positions that could significantly change during the next twelve months. Interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. 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, 2015, the Company was subject to U.S Federal income tax examinations for the years 2012 through 2014 and income tax examinations from various other jurisdictions for the years 2006 through 2014. 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 did 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. In the fourth quarter of 2015, Competent Authority completed their review and communicated to the Company that they proposed to assess a tax on the 2009 tax year only. A formal Letter of Disposition from Competent Authority is expected to be received in 2016. The Company plans to accept the proposal and has recorded an expense of approximately $0.8 million in Canada and expects to realize a related benefit of $0.5 million in the U.S.

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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=6907707&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=6907707&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=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 + Details
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