Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes included in the accompanying consolidated statement of operations represents federal, state and foreign income taxes. The components of income (loss) before income taxes and the provision (benefit) for income taxes consist of the following:


Years ended December 31		2014		2013		2012
Income (loss) before income taxes:
Domestic	$	1,635	$	5,771	$	(1,511)
Foreign		(54,695)		17,555		(2,299)
Total income (loss) before income taxes	$	(53,060)	$	23,326	$	(3,810)

Provision for income taxes:
Current:
Federal	$	-	$	-	$	-
State and foreign		1,382		5,878		2,700
Total current provision		1,382		5,878		2,700

Deferred:
Federal		-		-		98
State and foreign		(3,238)		(3,081)		(2,831)
Total deferred benefit		(3,238)		(3,081)		(2,733)
Total provision (benefit) for income taxes	$	(1,856)	$	2,797	$	(33)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s effective income tax rate to the statutory federal tax rate is as follows:


Years ended December 31	2014		2013		2012
Statutory U.S. federal income tax rate	(35.0)	%	35.0	%	(35.0)	%
State income taxes, net of federal tax benefit	-		2.4		(4.9)
Tax credits	(1.3)		(3.5)		-
Foreign tax rate differential	0.2		(9.5)		(20.3)
Increase (reduction) of income tax accruals	0.2		(1.1)		0.6
Tax on foreign dividends, net of foreign tax credits	(0.1)		(8.1)		17.5
Reduction of deferred taxes	-		0.6		7.6
Valuation allowances	(2.1)		(6.2)		15.8
Non-deductible goodwill impairment	33.9		-		-
Non-deductible compensation	1.0		3.0		15.3
Other	(0.3)		(0.6)		2.6
Effective income tax rate	(3.5)	%	12.0	%	(0.8)	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows:


As of December 31		2014		2013
Deferred tax assets:
Inventories	$	2,009	$	2,943
Employee compensation and benefits		3,675		3,653
Insurance		387		489
Depreciation and amortization		1,013		2,359
Net operating loss carryforwards		48,166		45,859
General business credit carryforwards		12,697		12,900
Other reserves		7,493		8,883
Gross deferred tax assets		75,440		77,086
Less: Valuation allowance		(67,907)		(71,827)
Deferred tax assets less valuation allowance		7,533		5,259

Deferred tax liabilities:
Depreciation and amortization		(20,910)		(23,718)
Basis difference - equity investee		(31,016)		(31,016)
Other		(976)		(1,764)
Gross deferred tax liabilities		(52,902)		(56,498)

Net deferred tax liability	$	(45,369)	$	(51,239)

Summary of Income Tax Contingencies

The following is a reconciliation of the Company’s total gross unrecognized tax benefits:


		2014		2013		2012
Balance as of January 1	$	3,624	$	3,416	$	3,452

Tax positions related to the current year:
Additions		217		217		93
Tax positions related to the prior years:
Additions		168		216		-
Reductions		-		(71)		(58)
Expirations of statutes of limitation		(121)		(154)		(71)

Balance as of December 31	$	3,888	$	3,624	$	3,416

Schedule of Tax Years Open for Examination

The following table summarizes the open tax years for each important jurisdiction:


Jurisdiction	Open Tax Years
U.S. Federal		2011-2014
Brazil		2009-2014
China		2011-2014
France		2010-2014
Mexico		2010-2014
Spain		2010-2014
Sweden		2009-2014
United Kingdom		2010-2014

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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