Annual report pursuant to section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Summary of income (loss) before income taxes
                 
    2012     2011  

U.S income (loss)

   $ (3,501 )    $ (69,696 ) 

Non-U.S. income

     1,349       1,119  
   

 

 

    

 

 

  

Loss before income taxes

   $ (2,152 )    $ (68,577 ) 
   

 

 

    

 

 

  
Summary of components of consolidated provision for income taxes
                 
    2012     2011  

U.S Federal income tax benefit

                

Current

   $ (93 )    $ (236 ) 

Deferred

     (717 )      (21,009 ) 
   

 

 

    

 

 

  

Total U.S. Federal income tax benefit

     (810 )      (21,245 ) 

State and local income tax expense (benefit)

                

Current

     (18 )      205  

Deferred

     (191 )      (2,409 ) 
   

 

 

    

 

 

  

Total state and local income tax benefit

     (209 )      (2,204 ) 
   

 

 

    

 

 

  

Foreign income tax expense

                

Current

     356       315  
   

 

 

    

 

 

  

Total income tax benefit

   $ (663 )    $ (23,134 ) 
   

 

 

    

 

 

  
Summary of the temporary differences and carryforwards that gives rise to deferred tax assets and liabilities
                 
    2012     2011  

Deferred Federal income tax assets —

                

Bad debt reserves

   $ 1,075     $ 126  

Stock based compensation

     635       703  

Net operating loss

     5,564       4,585  

Accrued compensation

     483       94  

Alternative minimum tax credit

     47       42  

Inventory

     70       80  

Accrued rent

     18       18  

Goodwill and intangibles

     11,609       12,820  

Derivative liability

     —         87  

Other

     14       16  
   

 

 

    

 

 

  

Total deferred Federal income tax assets

     19,515       18,571  
   

 

 

    

 

 

  

Deferred Federal income tax liabilities —

                

Depreciation and asset basis differences

     (1,772 )      (1,529 ) 

Total deferred Federal income tax liabilities

     (1,772 )      (1,529 ) 
   

 

 

    

 

 

  

Net deferred Federal income tax asset

     17,743       17,042  

Net deferred state and local income tax asset

     2,034       1,827  
   

 

 

    

 

 

  

Net deferred income taxes

   $ 19,777     $ 18,869  
   

 

 

    

 

 

  
Classification of net deferred income taxes

The classification of net deferred income taxes as of December 31, 2012 is summarized as follows (in thousands):

 

                         
    Current     Long-term     Total  

Deferred tax assets

   $ 1,971     $ 21,751     $ 23,722  

Deferred tax liabilities

     —         (3,945 )      (3,945 ) 
   

 

 

    

 

 

    

 

 

  

Net deferred income taxes

   $ 1,971     $ 17,806     $ 19,777  
   

 

 

    

 

 

    

 

 

  

The classification of net deferred income taxes as of December 31, 2011 is summarized as follows (in thousands):

 

                         
    Current     Long-term     Total  

Deferred tax assets

   $ 682     $ 22,122     $ 22,804  

Deferred tax liabilities

     —         (3,935 )      (3,935 ) 
   

 

 

    

 

 

    

 

 

  

Net deferred income taxes

   $ 682     $ 18,187     $ 18,869  
   

 

 

    

 

 

    

 

 

  
Reconciliations of the effective income tax rate to the federal statutory rate
                 
    2012     2011  

Income tax benefit at the statutory rate

     34.00 %      34.00 % 

State and local income tax benefit

     1.78 %      3.33 % 

Foreign income tax

     (10.23 %)      (0.28 %) 

Permanent differences

     (5.38 %)      (3.71 %) 

Resolution of uncertain tax positions

     11.15 %      0.17 % 

Other adjustments

     (0.48 %)      0.12 % 
   

 

 

    

 

 

  

Effective income tax rate

     30.84 %      33.63 % 
   

 

 

    

 

 

  
Unrecognized tax benefits
                 
        2012             2011      

Beginning balance

   $ 240     $ 247  

Additions to prior year tax positions

     —         109  

Reductions to prior year tax positions

     (109 )      (13 ) 

Reductions for lapse in statute of limitations

     (131 )      (103 ) 
   

 

 

    

 

 

  

Ending balance

   $ —       $ 240