XML 63 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.8

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2013
INCOME TAXES |
INCOME TAXES | 7. INCOME TAXES The provision for income taxes is based on income before income taxes as follows (in thousands):
|  | For the year ended December 31, 2013 |  | For the year ended December 31, 2012 |
--- | --- | --- | --- | --- | ---
Domestic |  | $ | 1,406 |  | $ | 3,725 |
Foreign |  |  | 4,375 |  |  | 3,773 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income before income taxes |  | $ | 5,781 |  | $ | 7,498 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Components of the total provision for income taxes are as follows (in thousands):
|  | For the year ended December 31, 2013 |  | For the year ended December 31, 2012 |
--- | --- | --- | --- | --- | ---
Current provision |  |  |  |  |  |  |
Domestic |  | $ | 1,179 |  | $ | 115 |
Foreign |  |  | 898 |  |  | 881 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total current provision |  |  | 2,077 |  |  | 996 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred provision |  |  |  |  |  |  |
Domestic |  |  | (197 | ) |  | 1,162 |
Foreign |  |  | (52 | ) |  | (57 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total deferred provision |  |  | (249 | ) |  | 1,105 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Provision for income taxes |  | $ | 1,828 |  | $ | 2,101 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The provision for income taxes differs from the amount determined by applying the federal statutory rate as follows (in thousands):
|  | For the year ended December 31, 2013 |  | For the year ended December 31, 2012 |
--- | --- | --- | --- | --- | ---
Tax provision, computed at statutory rate |  |  | 34.0 | % |  | 34.0 | %
State tax, net of federal impact |  |  | 3.7 | % |  | 3.3 | %
Effect of foreign tax rate differences and foreign tax adjustments |  |  | (9.7 | )% |  | (6.0 | )%
Dividend from foreign subsidiary, net of foreign tax credit |  |  | 3.5 | % |  | 0.0 | %
Adjustments to prior year accruals(1) |  |  | 0.0 | % |  | (1.9 | )%
Other |  |  | 0.1 | % |  | (1.4 | )%
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Provision for income taxes |  |  | 31.6 | % |  | 28.0 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) Adjustments relate to the resolution of certain prior year income tax related matters. The tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities are as follows (in thousands):
|  | December 31, 2013 |  | December 31, 2012 |
--- | --- | --- | --- | --- | ---
Current deferred tax assets: |  |  |  |  |  |  |
Allowances and other |  | $ | 1,315 |  | $ | 591 |
Net operating loss and tax credit carryforwards |  |  | 3,628 |  |  | 98 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total current deferred tax assets |  |  | 4,943 |  |  | 689 |
Valuation allowance |  |  | (1,982 | ) |  | (50 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net current deferred tax assets |  | $ | 2,961 |  | $ | 639 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noncurrent deferred tax assets: |  |  |  |  |  |  |
Employee benefit plans |  | $ | 2,074 |  | $ | 1,375 |
Goodwill and Intangibles |  |  | 1,553 |  |  | 2,916 |
Property, plant & equipment |  |  | (381 | ) |  | (188 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total noncurrent deferred tax assets |  | $ | 3,246 |  | $ | 4,103 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: |  |  |  |  |  |  |
Acquired property, plant and equipment and intangible assets |  | $ | 1,997 |  | $ | 638 |
Other |  |  | 330 |  |  | 297 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total deferred tax liabilities |  | $ | 2,327 |  | $ | 935 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The Company has foreign net operating loss carryforwards of approximately $3,300 expiring in 2014 through 2017 and tax credit carryforwards of approximately $212 expiring in 2018. These carryforwards and related valuation allowance were recorded in relation to the acquisition of Globe Motors, Inc. and are included in the purchase price allocation discussed in Note 2. Acquisitions. Additionally, the Company has foreign operating losses and tax credit carryforwards that relate to a foreign subsidiary acquired in 2010. At the time of the acquisition, the Company could not conclude, on a more likely than not basis, that it would ultimately realize tax benefits from these losses and credits, and therefore valued the deferred benefit at zero. The Company will continue to assess its ability to utilize any portion of the tax carryforward balance and whether it should adjust the amount of deferred tax asset related to this carryforward. Realization of the Company's recorded deferred tax assets is dependent upon the Company generating sufficient taxable income in the appropriate tax jurisdictions in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses and tax credit carryforwards. The Company has recorded a valuation allowance due to the uncertainty related to the realization of certain deferred tax assets existing at December 31, 2013. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. Management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets, net of valuation allowances as of December 31, 2013. The Company files income tax returns in various U.S. and foreign taxing jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations in its major tax jurisdictions for periods before 2009. The Company is no longer subject to tax examinations in The Netherlands or Sweden for periods before 2008. The Company is no longer subject to tax examinations in Portugal for periods before 2010. In relation to the acquisition of Globe Motors, Inc., the Company intends to file a unilateral election under Section 338(g) of the Internal Revenue Code to treat the acquisition as an asset purchase instead of a stock purchase. This election will allow the Company to take a stepped-up basis at the fair market value purchase price and the transaction will be deemed, for purposes of the section, as an asset sale. The deemed sale may result in a taxable gain for the Company. The effects of the election have been assumed for purposes of the purchase price allocation discussed in Note 2. The final date by which the Company must make the election is July 15, 2014. Should the company not make the election as intended; the purchase price allocation will be adjusted accordingly. In general, it is the practice and intention of the Company to reinvest the earnings of its non-domestic subsidiaries in activities outside the United States. Generally, such amounts would become subject to domestic taxation upon the remittance of dividends to the United States and under certain other circumstances. Exceptions may be made on a year-by-year basis to repatriate current year earnings of certain foreign subsidiaries based on cash needs in the United States. During 2013, the Company's foreign subsidiaries paid dividends of $3,400 to the Company's domestic parent in relation to completing the acquisition of Globe Motors, Inc. and U.S. tax consequences of the payments have been included in the Company's provision for income taxes. The Company does not intend to transfer or pay dividends of the remaining amounts and, therefore, has not recorded the domestic tax consequences of such payments. As of December 31, 2013, domestic income and foreign withholding taxes have not been provided for unremitted earnings of foreign subsidiaries. These earnings, which are considered to be indefinitely reinvested, would become subject to domestic income tax if they were remitted to the United States. The amount of unrecognized deferred income tax liability on the unremitted earnings has not been determined because the hypothetical calculation is not practicable.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration