Income Taxes

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



	Year Ended
	December 31, 2013			December 31, 2012			December 30, 2011
Current:
United States
Federal	$	(12,095	)	$	346		$	(116	)
State	179			77			715
Foreign	201			72			1,913
Total Current	(11,715		)	495			2,512
Deferred:
United States
Federal	1,744			1,300			2,014
State	(1,797		)	212			(399		)
Foreign	(2,993		)	(3,730		)	(812		)
Total Deferred	(3,046		)	(2,218		)	803
	$	(14,761	)	$	(1,723	)	$	3,315

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



	Year Ended
	December 31, 2013			December 31, 2012			December 30, 2011
United States	$	(22,438	)	$	(21,215	)	$	(55,991	)
Foreign	(17,218		)	(17,276		)	(3,411		)
	$	(39,656	)	$	(38,491	)	$	(59,402	)

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, 2013			December 31, 2012			December 30, 2011
Tax benefit at U.S. Federal statutory rate	$	(13,880	)	$	(13,472	)	$	(20,791	)
State income taxes, net of U.S. Federal income tax benefit	(1,052		)	188			205
Earnings taxed at rates different than the U.S. Federal statutory rate	(6,051		)	(6,271		)	(6,049		)
Changes in enacted tax rates	488			(63		)	135
Change in valuation allowances	16,722			16,310			24,689
Impact of changes in uncertain tax positions	(12,179		)	386			938
Foreign dividends	—			—			2,889
Other, net	1,191			1,199			1,299
	$	(14,761	)	$	(1,723	)	$	3,315

At December 31, 2013 and December 31, 2012, the tax-effected temporary differences are as follows:



	Asset (Liability)
	December 31, 2013			December 31, 2012
Current deferred tax assets
Accrued expenses	$	1,200		$	609
Accounts receivable	595			879
Inventories	(2		)	(149		)
Other	1,790			1,642
Valuation allowance	(3,608		)	(2,921		)
Total Current	(25		)	60
Non-current deferred tax liabilities
Property, plant, and equipment	(20,392		)	(24,714		)
Customer relationships	(19,991		)	(23,394		)
Net operating losses	89,678			74,137
Other liabilities	(975		)	316
Other	5,765			8,117
Valuation allowance	(72,978		)	(54,813		)
Total non-current	(18,893		)	(20,351		)
Total, net	$	(18,918	)	$	(20,291	)

Total gross deferred tax assets were $72.7 million and $88.3 million as of December 31, 2013 and December 31, 2012, respectively. Total gross deferred tax liabilities were $15.0 million and $50.9 million as of December 31, 2013 and December 31, 2012, 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 $143.3 million, $677.4 million and $39.0 million, respectively, which expire between 2013 and 2033. The Company's valuation allowance was $76.6 million and $57.7 million as of December 31, 2013 and December 31, 2012, 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:



	2013			2012			2011
Balance, beginning of year	$	(57,734	)	$	(46,323	)	$	(20,027	)
Additions	(18,852		)	(11,411		)	(26,296		)
Reductions	—			—			—
Balance, end of year	$	(76,586	)	$	(57,734	)	$	(46,323	)

In 2013, 2012 and 2011, 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:



	2013			2012			2011
Balance, beginning of year	$	(11,209	)	$	(11,395	)	$	(17,368	)
Reductions for expiration of the applicable statute of limitations	8,954			—			—
Reductions for tax positions of prior years	145			466			—
Additions for tax positions of current year	—			(243		)	(2,067		)
Additions for tax positions of prior years	—			—			(466		)
Reductions for tax positions of current year	—			—			8,506
Foreign currency translation	(82		)	(37		)	—
Balance, end of year	$	(2,192	)	$	(11,209	)	$	(11,395	)

On December 31, 2013 and December 31, 2012, the gross amount of unrecognized tax benefits was $2.2 million and $11.2 million, respectively, exclusive of interest and penalties. As of December 31, 2013 and December 31, 2012, if we were to prevail on all unrecognized tax benefits, $2.2 million and $11.2 million, respectively, would have benefited the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits in provision for income taxes in the consolidated statements of operations. The Company had approximately $0.2 million, $3.3 million and $2.9 million in interest accrued at December 31, 2013, December 31, 2012 and December 30, 2011, respectively. Interest and penalties recognized in 2013, 2012 and 2011 were a benefit of $3.2 million, an expense of $0.4 million and an expense of $0.4 million, respectively.

During the third quarter ended September 27, 2013, the statute of limitations expired for an uncertain tax position taken in a prior year. As a result, the Company recognized $9.0 million in previously unrecognized tax benefit and an additional $3.2 million related to the reversal of accrued interest and penalties associated with the position.

During the next 12 months, the Company does not expect to have any significant reversal of gross unrecognized tax benefits. The Company files income tax returns in the U.S. federal and state and local jurisdictions, and in the UK, 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 2010.