Income Taxes

The provision/(benefit) for income taxes is comprised of the following:



	Year Ended
	December 31, 2012			December 30, 2011			December 31, 2010
Current:
United States
Federal	$	346		$	(116	)	$	(2,673	)
State	77			715			949
Foreign	72			1,913			4,997
Total Current	495			2,512			3,273
Deferred:
United States
Federal	1,300			2,014			(12,135		)
State	212			(399		)	(1,776		)
Foreign	(3,730		)	(812		)	(3,823		)
Total Deferred	(2,218		)	803			(17,734		)
	$	(1,723	)	$	3,315		$	(14,461	)

The U.S. and foreign components of loss from continuing operations before income taxes are as follows:



	Year Ended
	December 31, 2012			December 30, 2011			December 31, 2010
United States	$	(21,215	)	$	(55,991	)	$	(52,119	)
Foreign	(17,276		)	(3,411		)	(730		)
	$	(38,491	)	$	(59,402	)	$	(52,849	)

Reconciliation of the differences between income taxes computed at the U.S. Federal statutory tax rate and the Company's income tax benefit follows:



	Year Ended
	December 31, 2012			December 30, 2011			December 31, 2010
Tax benefit at U.S. Federal statutory rate	$	(13,472	)	$	(20,791	)	$	(18,497	)
State income taxes, net of U.S. Federal income tax benefit	188			205			(729		)
Earnings taxed at rates different than the U.S. Federal statutory rate	(6,271		)	(6,049		)	(185		)
Impact of non-deductible interest	—			—			1,885
Changes in enacted tax rates	(63		)	135			(101		)
Implementation of tax planning strategies	—			—			(8,494		)
Change in valuation allowances	16,310			24,689			4,075
Impact of changes in uncertain tax positions	386			938			(2,442		)
Foreign dividends	—			2,889			8,040
Other, net	1,199			1,299			1,987
	$	(1,723	)	$	3,315		$	(14,461	)

At December 31, 2012 and December 30, 2011, the tax-effected temporary differences are as follows:



	Asset (Liability)
	December 31, 2012			December 30, 2011
Current deferred tax assets, net
Accrued expenses	$	609		$	987
Accounts receivable	879			1,444
Inventories	(149		)	(80		)
Other	1,642			2,654
Valuation allowance	(2,921		)	(3,990		)
Total Current, net	60			1,015
Non-current deferred tax liabilities, net
Property, plant, and equipment	(24,714		)	(26,141		)
Customer relationships	(23,394		)	(26,997		)
Net operating losses	74,137			62,150
Other liabilities	316			3,676
Other	8,117			8,150
Valuation allowance	(54,813		)	(42,333		)
Total Non-current, net	(20,351		)	(21,495		)
Total, net	$	(20,291	)	$	(20,480	)

Total gross deferred tax assets were $88.3 million and $70.5 million as of December 31, 2012 and December 30, 2011, respectively. Total gross deferred tax liabilities were $(50.9) million and $(44.7) million as of December 31, 2012 and December 30, 2011, respectively.

Deferred taxes have not been provided on the undistributed earnings of foreign subsidiaries, which are considered to be permanently invested. It should be noted, however, that U.S. incremental tax has been provided on undistributed earnings because of certain U.S. deemed dividend inclusion rules. The Company has U.S. federal, U.S. state and foreign NOL carryforwards totaling approximately $147.0 million, $617.4 million and $24.0 million, respectively, which expire between 2013 and 2033. The Company's valuation allowance was $57.7 million and $46.3 million as of December 31, 2012 and December 30, 2011, respectively. All domestic NOLs and other operating loss carryforwards are potentially subject to certain statutory limitations on future use.

A reconciliation of the beginning and ending amount of world-wide valuation allowances is as follows:



	2012			2011			2010
Balance, beginning of year	$	(46,323	)	$	(20,027	)	$	(26,297	)
Additions	(11,411		)	(26,296		)	(5,008		)
Reductions	—			—			11,278
Balance, end of year	$	(57,734	)	$	(46,323	)	$	(20,027	)

In 2012, 2011 and 2010, the Company recorded valuation allowances against certain of its deferred tax assets subsequent to analyzing recoverability of its net asset. The Company analyzed the four sources of taxable income described in ASC 740 and determined that a valuation allowance is required to reduce a portion of its U.S. and foreign deferred tax assets, as it is more likely than not that some portion of the deferred tax assets will not be realized.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:



	2012			2011			2010
Balance, beginning of year	$	(11,395	)	$	(17,368	)	$	(24,028	)
Additions for tax positions of current year	(280		)	(2,067		)	—
Additions for tax positions of prior years	—			(466		)	—
Reductions for tax positions of current year	—			8,506			6,660
Reductions for tax positions of prior years	466			—			—
Balance, end of year	$	(11,209	)	$	(11,395	)	$	(17,368	)

On December 31, 2012 and December 30, 2011, the gross amount of unrecognized tax benefits was $11.2 million and $11.4 million, respectively, exclusive of interest and penalties. As of December 31, 2012 and December 30, 2011, if we were to prevail on all unrecognized tax benefits, $11.2 million and $11.4 million, respectively, would have benefited the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. The Company had approximately $3.3 million, $2.9 million and $2.4 million in interest accrued at December 31, 2012, December 30, 2011 and December 31, 2010, respectively. Interest and penalties recognized in 2012 and 2011 were approximately $0.4 million and $0.4 million, respectively. No interest and penalties were recognized in 2010.

The Company's 2008 - 2009 French income tax returns were adjusted following an examination by tax authorities. The Company reduced the unrecognized tax benefits related to those returns in 2012 by $0.5 million.

During the next 12 months, the Company estimates $9.0 million of our gross unrecognized tax benefit will reverse due to expiration of statutes. The Company files income tax returns in the U.S. federal and state and local jurisdictions, and in the U.K., Canada, the Netherlands, and France. Under the generally accepted statute of limitation rules, the Company is not subject to changes in income taxes by any taxing jurisdiction for years prior to 2005.