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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 10. INCOME TAXES The Compa ny’s provision (benefit) for income taxes is summarized as follows:
| For the year ended
Amounts in thousands | December 31, 2012
| 2012 |  | 2011
U.S. Federal - Current | $ 67 |  | $ 27
U.S. Federal - Deferred | 0 |  | 0
Provision for U.S. federal income taxes | 67 |  | 27
Foreign - Current | $ 1,009 |  | $ 721
Foreign - Deferred | (48) |  | (81)
Provision for foreign income taxes | 961 |  | 640
Total provision for income taxes | $ 1,028 |  | $ 667
The Company’s effective income tax rate differs from the statutory federal income tax rate as follows:
Amounts in thousands | 2012 | 2011
U.S. Federal income tax statutory rate | 34.0% | 34.0%
Foreign income taxes | -10.0% | -26.4%
Equity in Polish investment | 0.2% | -0.6%
State income tax (net of federal benefit) | 0.8% | -0.4%
Effect of stock option exercises | 0.0% | 1.8%
Valuation allowance | -2.6% | 1.7%
Permanent and other items | -2.3% | 8.0%
Total provision for income taxes | 20.1% | 18.1%
The effective tax rates of the Company’s foreign properties are impacted by the movement of exchange rates primarily due to loans, which are denominated in U.S. dollars. Therefore, foreign currency gains or losses recorded in each property’s local currency do not impact the Company’s earnings reported in U.S. dollars. Also, foreign currency gains or losses can significantly impact each jurisdiction’s effective tax rate. The Company records deferred tax assets and liabilities based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted statutory tax rate in effect for the year these differences are expected to be taxable or reversed. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. The recorded deferred tax assets are reviewed for impairment on a quarterly basis by reviewing the Company’s internal estimates for future taxable income. The Company assesses the continuing need for a valuation allowance that results from uncertainty regarding its ability to realize the benefits of the Company’s deferred tax assets. The ultimate realization of deferred income tax assets depends on generation of future taxable income in the jurisdictions where the assets are located during the periods in which those temporary differences become deductible. If the Company concludes that its prospects for the realization of its deferred tax assets are more likely than not, the Company will then reduce its valuation allowance as appropriate and credit income tax expense after considering the following factors:
· | The level of historical taxable income and projections for future taxable income in the jurisdictions where the assets are located over periods in which the deferred tax assets would be deductible;
· | Accumulation of net income before tax utilizing a look-back period of three years, and
· | Implementation of certain t ax planning strategies.
The Company’s deferred income taxes at December 31, 2012 and 2011 are summarized as follows:
Amounts in thousands | 2012 | 2011
Deferred tax assets (liabilities) - U.S. Federal and state: |  |
Deferred tax assets - current: |  |
Accrued liabilities and other | $ 181 | $ 156
Deferred tax (liabilities) - current: |  |
Prepaid expenses | (101) | (120)
Valuation allowance | (177) | (144)
Net deferred tax (liabilities) - current | (97) | (108)
Deferred tax assets - non-current: |  |
Amortization of goodwill for tax | 526 | 578
Amortization of startup costs | 359 | 401
Property and equipment | 1,089 | 1,333
NOL carry forward | 2,584 | 2,102
Accrued liabilities and other | 371 | 1,005
Total deferred tax assets - non-current | 4,929 | 5,419
Deferred tax (liabilities) - non-current: |  |
Accumulated other comprehensive eanings | 0 | (310)
Valuation allowance | (4,832) | (5,001)
Net deferred tax assets - non-current | 97 | 108
Total deferred tax assets - U.S. federal and state | $ 0 | $ 0
Amounts in thousands | 2012 | 2011
Deferred tax assets (liabilities) - foreign |  |
Deferred tax assets - current: |  |
NOL carryforward | $ 0 | $ 13
Other | 79 | 65
Net deferred tax assets - current | 79 | 78
Deferred tax assets - non-current: |  |
Property and equipment | 621 | 620
NOL carryforward | 2,504 | 2,748
Tax credits | 348 | 0
Accrued liabilities and other | 322 | 443
Deferred tax (liabilities) - non current: |  |
Property and equipment | (2,682) | (2,292)
Others | 0 | (22)
Valuation allowance | (1,745) | (2,175)
Net deferred tax (liabilities) - non-current | (632) | (678)
Total deferred tax (liabilities) - foreign | ($553) | ($600)
Net deferred tax (liabilities) | ($553) | ($600)
The following table summarizes the Company’s U.S. pre-tax basis net operating loss carryforwards and related expiration dates at December 31, 2012:
Amounts in thousands | 2012
Expiration Date: | Amount
2027 | $ 1,372
2028 | 3,458
2029 | 270
2031 | 240
2032 | 1,175
| $ 6,515
The following table summarized the Company’s foreign pre-tax basis net operating loss carryforwards and related expiration dates at December 31, 2012:
Amounts in thousands |
Expiration Date: | Amount
2026 | $ 113
2027 | 0
2028 | 1,518
2029 | 1,836
2030 | 1,516
2031 | 749
2032 | 1,196
Never | 2,856
| $ 9,784
The Company has analyzed filing positions in all of the U.S. federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its U.S. federal tax return, its state tax return in Colorado and its foreign tax returns in Canada and South Africa as “major” tax jurisdictions, as defined. The Company’s tax returns for the following periods are subject to examination:
Jurisdiction: | Periods
U.S. Federal | 2005- 2011
U.S. State – Colorado | 2003- 2011
Canada | 2005- 2011
South Africa | 1999- 2009
The Company has recognized a $0.1 million tax liability for uncertain tax positions taken on its U.S. tax return and has recognized a $0.2 million tax liability for an uncertain tax position on a foreign tax return. This adjustment has been recorded as a component of taxes payable in the accompanying consolidated balance sheet as of the year ended December 31, 2012. The Company may, from time to time, be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of earnings before income taxes. Penalties are recorded in general and administrative expenses and interest paid or received is recorded in interest expense or interest income, respectively, in the consolidated statement of earnings.

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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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