XML 53 R28.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Note 20 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
( 20 ) | 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 income (loss) before taxes are as follows (in thousands):
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |
Domestic |  | $ | (18,625 | ) |  | $ | (11,924 | )
Foreign |  |  | (6,599 | ) |  |  | 15,309 |
|  | $ | (25,224 | ) |  | $ | 3,385 |
The components of income tax expense are as follows (in thousands):
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 0 |  |  | $ | 0 |
State |  |  | 31 |  |  |  | 102 |
Foreign |  |  | (269 | ) |  |  | 3,417 |
Total current income tax expense |  |  | (238 | ) |  |  | 3,519 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 0 |  |  |  | 0 |
State |  |  | 0 |  |  |  | 0 |
Foreign |  |  | 2,230 |  |  |  | 1,050 |
Total deferred income tax expense |  |  | 2,230 |  |  |  | 1,050 |
|  | $ | 1,992 |  |  | $ | 4,569 |
The Company files a consolidated federal income tax return which includes all domestic subsidiaries. State income taxes paid in the U.S. during 2015 and 2014 totaled $120,000 and $33,000, respectively. State income tax refunds received in the U.S. during 2015 totaled $30,000. Foreign income taxes paid during 2015 and 2014 totaled $2,195,000 and $1,063,000, respectively. There were no foreign refunds received in 2015 and 2014. There were no federal taxes paid in 2015 and 2014, and there were no federal refunds received in 2015 and 2014. At December 31, 2015, the Company had $132,040,000 of federal net operating loss carryforwards available to offset future federal taxable income, which will expire in various amounts from 2024 to 2035. At December 31, 2015, the Company had $137,645,000 of state net operating loss carryforwards available to offset future state taxable income, the majority of which relates to Florida and Kentucky. These carryforwards expire in various amounts from 2018 to 2035. The following is a reconciliation of income tax (benefit) expense to that computed by applying the federal statutory rate to (loss) income before income taxes (in thousands):
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |
Federal tax expense at the statutory rate |  | $ | (8,829 | ) |  | $ | 1,185 |
Current year permanent differences |  |  | 254 |  |  |  | 61 |
State income taxes, net of federal tax impact |  |  | (613 | ) |  |  | (772 | )
Foreign repatriation, net of foreign tax credits |  |  | (3,394 | ) |  |  | 4,077 |
Effect of tax rates of foreign subsidiaries |  |  | 323 |  |  |  | (733 | )
Currency translation effect on temporary differences |  |  | (217 | ) |  |  | (71 | )
Change in valuation allowance |  |  | 11,453 |  |  |  | 297 |
Prior year adjustment |  |  | 3,015 |  |  |  | 531 |
Other |  |  | 0 |  |  |  | (6 | )
|  | $ | 1,992 |  |  | $ | 4,569 |
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 $4,033,000 and $2,556,000 as of December 31, 2015 and 2014, respectively. The net deferred tax asset balance of $2,556,000 at December 31, 2014 is attributable to the Mexican subsidiaries. As a result of the increased uncertainty surrounding the Company’s forecast of taxable income in Mexico, it was determined that the Company no longer met the “more likely than not” threshold required under ASC 740-10 in order to maintain the Mexico deferred tax asset. Accordingly, the Company recorded a valuation allowance on its net deferred tax asset related to certain non-U.S. tax benefits, resulting in deferred tax expense of $2,230,000 during year ended December 31, 2015. 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 non-U.S. tax benefits. Deferred income tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and benefit accruals |  | $ | 1,987 |  |  | $ | 1,665 |
Inventory valuation |  |  | 2,840 |  |  |  | 3,124 |
Federal and state net operating loss carryforwards |  |  | 51,460 |  |  |  | 46,835 |
Deferred revenue |  |  | 533 |  |  |  | 2,573 |
Accounts receivable allowance |  |  | 42 |  |  |  | 113 |
Defined benefit pension plan |  |  | 1,766 |  |  |  | 2,304 |
Foreign deferred revenue and other provisions |  |  | 4,033 |  |  |  | 2,556 |
AMT credits |  |  | 185 |  |  |  | 185 |
Other |  |  | 1,526 |  |  |  | 974 |
|  |  | 64,372 |  |  |  | 60,329 |
Domestic valuation allowance |  |  | (58,682 | ) |  |  | (51,914 | )
Foreign valuation allowance |  |  | (4,033 | ) |  |  | 0 |
Total deferred tax assets |  |  | 1,657 |  |  |  | 8,415 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Foreign subsidiaries – unrepatriated earnings |  |  | (379 | ) |  |  | (3,773 | )
Depreciation |  |  | (1,278 | ) |  |  | (2,086 | )
Total deferred tax liabilities |  |  | (1,657 | ) |  |  | (5,859 | )
Net deferred tax asset |  | $ | 0 |  |  | $ | 2,556 |
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, 2015 and 2014 was $200,000. There were no changes to the unrecognized tax benefit balance during the years ended December 31, 2015 and 2014. If the Company’s positions are sustained by the taxing authority in favor of the Company, the entire balance at December 31, 2015 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, 2015 and 2014, 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 2011 through 2014, 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, 2015, the Company has no undistributed earnings of foreign subsidiaries that are classified as permanently reinvested. The Company did not repatriate any funds to the U.S during 2015 and expects the repatriation of any available non-U.S. cash holdings during 2016 will be limited to the amount of undistributed earnings as of December 31, 2015. The loss recognized by the Company’s Mexican operations during 2015 reduced the undistributed earnings of that entity and the Company has therefore recognized a deferred income tax benefit equal to the reduction in the U.S deferred tax liability and a corresponding increase in the deferred tax asset valuation allowance.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration