XML 102 R27.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 18 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | (18) Income Taxes The Company accounts for income taxes under the liability method. Accordingly, deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. The components of (loss) income from continuing operations before taxes are as follows (in thousands):
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |
Domestic |  | $ | (19,952 | ) |  | $ | 2,900 |
Foreign |  |  | 9,972 |  |  |  | 9,615 |
|  | $ | (9,980 | ) |  | $ | 12,515 |
The components of income tax (benefit) expense applicable to continuing operations are as follows (in thousands):
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 0 |  |  | $ | 0 |
State |  |  | 116 |  |  |  | 141 |
Foreign |  |  | 1,077 |  |  |  | 1,236 |
Total current income tax expense |  |  | 1,193 |  |  |  | 1,377 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (2,061 | ) |  |  | 0 |
State |  |  | (376 | ) |  |  | 0 |
Foreign |  |  | 1,151 |  |  |  | 871 |
Total deferred income tax (benefit) expense |  |  | (1,286 | ) |  |  | 871 |
|  | $ | (93 | ) |  | $ | 2,248 |
Income tax (benefit) expense for each year is allocated to continuing operations, discontinued operations, extraordinary items, other comprehensive income, the cumulative effects of accounting changes, and other charges or credits recorded directly to shareholders’ equity. ASC 740-20-45 Income Taxes, Intraperiod Tax Allocation, Other Presentation Matters includes an exception to the general principle of intraperiod tax allocations. The codification source states that the tax effect of pretax income or loss from continuing operations generally should be determined by a computation that considers only the tax effects of items that are included in continuing operations. The exception to that incremental approach is that all items (i.e. other comprehensive income, discontinued operations, etc.) be considered in determining the amount of tax benefit that results from a loss from continuing operations and that benefit should be allocated to continuing operations. That is, when a company has a current period loss from continuing operations, management must consider income recorded in other categories in determining the tax benefit that is allocated to continuing operations. This includes situations in which a company has recorded a full valuation allowance at the beginning and end of the period, and the overall tax provision for the year is zero. The intraperiod tax allocation is performed once the overall tax provision has been computed and allocates that provision to various income statement (continuing operations, discontinued operations), other comprehensive income and balance sheet captions. While the intraperiod tax allocation does not change the overall tax provision, it results in a gross-up of the individual components. Additionally, tax jurisdictions must be considered separately; therefore the allocation to the U.S. and Mexico must be looked at separately. As the Company experienced a loss from continuing operations in the U.S. for the year ended December 31, 2013 and other comprehensive income from employee benefit and foreign currency translation adjustments, the Company has allocated income tax expense against the components of other comprehensive income in 2013 using a 38.9% effective tax rate. Income tax benefit related to continuing operations for the year ended December 31, 2013 includes a benefit of $2,437,000 due to the required intraperiod tax allocation. Conversely, other comprehensive income for the year ended December 31, 2013 includes income tax expense of $2,437,000. The Company files a consolidated federal income tax return which includes all domestic subsidiaries. State income taxes paid in the U.S. during 2013 and 2012 totaled $120,000 and $116,000, respectively. Foreign income taxes paid during 2013 and 2012 totaled $289,000 and $2,054,000, respectively. There were no foreign refunds received in 2013 and 2012. There were no federal taxes paid in 2013 and 2012, and there were no federal refunds received in 2013 and 2012. At December 31, 2013, the Company had $119,869,000 of federal net operating loss carryforwards available to offset future federal taxable income, which will expire in various amounts from 2024 to 2033. At December 31, 2013, the Company had $41,883,000 of state net operating loss carryforwards available to offset future state taxable income, the majority of which relates to Florida. These carryforwards expire in various amounts from 2018 to 2033. The following is a reconciliation of income tax (benefit) expense applicable to continuing operations to that computed by applying the federal statutory rate to (loss) income from continuing operations before income taxes (in thousands):
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |
Federal tax expense at the statutory rate |  | $ | (3,517 | ) |  | $ | 1,831 |
Current year permanent differences |  |  | 50 |  |  |  | (18 | )
Goodwill impairment |  |  | 1,373 |  |  |  | 0 |
State income taxes, net of federal tax impact |  |  | (1,118 | ) |  |  | (406 | )
Foreign repatriation, net of foreign tax credits |  |  | 2,768 |  |  |  | 4,735 |
Mexican minimum taxes |  |  | 46 |  |  |  | 1,021 |
Effect of tax rates of foreign subsidiaries |  |  | (486 | ) |  |  | (440 | )
Currency translation effect on temporary differences |  |  | 38 |  |  |  | (882 | )
Valuation allowance |  |  | 729 |  |  |  | (4,444 | )
Prior year adjustment |  |  | 22 |  |  |  | 852 |
Other |  |  | 2 |  |  |  | (1 | )
|  | $ | (93 | ) |  | $ | 2,248 |
ASC 740, Income Taxes, requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The net cumulative domestic loss for the current and prior two years represents negative evidence under the provisions of ASC 740 requiring the Company to establish a valuation allowance against domestic deferred tax assets. Until an appropriate level and characterization of profitability is attained, the Company expects to continue to maintain a valuation allowance on its net deferred tax assets related to future U.S. and certain non-U.S. tax benefits. The gross deferred tax asset for the Company’s Mexican subsidiaries was $3,973,000 and $5,888,000 as of December 31, 2013 and 2012, respectively. Included in this balance as of December 31, 2012 is a deferred tax asset associated with the impairment of marketable securities, which was the result of losses recorded for book purposes on the portion of such marketable securities allocated to the Mexican subsidiaries. A full valuation allowance of $746,000 was applied to this specific deferred tax asset as of December 31, 2012. Therefore, the net deferred tax asset balances of $3,973,000 and $5,142,000 at December 31, 2013 and 2012, respectively, are attributable to the Mexican subsidiaries. The Company has been profitable in Mexico in the past and anticipates continuing profitability in the future. Deferred income tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and benefit accruals |  | $ | 1,905 |  |  | $ | 1,521 |
Inventory valuation |  |  | 3,176 |  |  |  | 2,817 |
Federal and state net operating loss carryforwards |  |  | 44,139 |  |  |  | 43,550 |
Deferred revenue |  |  | 3,180 |  |  |  | 5,461 |
Accounts receivable allowance |  |  | 129 |  |  |  | 121 |
Defined benefit pension plan |  |  | 873 |  |  |  | 3,554 |
Foreign deferred revenue and other provisions |  |  | 3,973 |  |  |  | 5,888 |
AMT credits |  |  | 185 |  |  |  | 185 |
Other |  |  | 1,339 |  |  |  | 135 |
|  |  | 58,899 |  |  |  | 63,232 |
Domestic valuation allowance |  |  | (49,832 | ) |  |  | (48,196 | )
Foreign valuation allowance |  |  | (0 | ) |  |  | (746 | )
Total deferred tax assets |  |  | 9,067 |  |  |  | 14,290 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Foreign subsidiaries – unrepatriated earnings |  |  | (2,665 | ) |  |  | (4,735 | )
Depreciation |  |  | (2,429 | ) |  |  | (4,413 | )
Total deferred tax liabilities |  |  | (5,094 | ) |  |  | (9,148 | )
Net deferred tax asset |  | $ | 3,973 |  |  | $ | 5,142 |
The ASC Income Tax topic includes guidance for the accounting for uncertainty in income taxes recognized in an enterprise’s financials. Specifically, the guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The total amount of gross unrecognized tax benefits as of December 31, 2013 and 2012 was $200,000. There were no changes to the unrecognized tax benefit balance during the years ended December 31, 2013 and 2012. If the Company’s positions are sustained by the taxing authority in favor of the Company, the entire balance at December 31, 2013 would reduce the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2013 and 2012, the Company does not have an accrual for the payment of tax-related interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Internal Revenue Service (IRS) is not currently examining the Company’s U.S. income tax returns for 2009 through 2012, for which the statute has yet to expire. In addition, open tax years related to state and foreign jurisdictions remain subject to examination. As of December 31, 2013, the Company has no undistributed earnings of foreign subsidiaries that are classified as permanently reinvested. The Company expects to repatriate available non-U.S. cash holdings during 2014. The Company will utilize its net operating loss carryforward in the U.S. to offset the taxable income generated in 2013 in the U.S. as a result of the repatriation and has therefore recognized a deferred income tax benefit equal to the amount of the U.S deferred tax liability and a corresponding reduction in the deferred tax asset valuation allowance.

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