Income Taxes

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



	Year Ended
	December 31, 2014			December 31, 2013			December 31, 2012
Current:
United States
Federal	$	(434	)	$	(12,095	)	$	346
State	148			179			77
Foreign	1,102			201			72
Total Current	816			(11,715		)	495
Deferred:
United States
Federal	903			1,744			1,300
State	181			(1,797		)	212
Foreign	(2,702		)	(2,993		)	(3,730		)
Total Deferred	(1,618		)	(3,046		)	(2,218		)
	$	(802	)	$	(14,761	)	$	(1,723	)

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



	Year Ended
	December 31, 2014			December 31, 2013			December 31, 2012
United States	$	(53,207	)	$	(22,438	)	$	(21,215	)
Foreign	(6,874		)	(17,218		)	(17,276		)
	$	(60,081	)	$	(39,656	)	$	(38,491	)

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, 2014			December 31, 2013			December 31, 2012
Tax benefit at U.S. Federal statutory rate	$	(21,029	)	$	(13,880	)	$	(13,472	)
State income taxes, net of U.S. Federal income tax benefit	214			(1,052		)	188
Earnings taxed at rates different than the U.S. Federal statutory rate	(8,188		)	(6,051		)	(6,271		)
Changes in enacted tax rates	346			488			(63		)
Change in valuation allowances	18,824			16,722			16,310
Impact of changes in uncertain tax positions	245			(12,179		)	386
Unrecognized foreign loss	8,447			—			—
Other, net	339			1,191			1,199
	$	(802	)	$	(14,761	)	$	(1,723	)

At December 31, 2014 and December 31, 2013, the tax-effected temporary differences are as follows:



	Asset (Liability)
	December 31, 2014			December 31, 2013
Current deferred tax assets/liabilities
Accrued expenses	$	322		$	1,200
Accounts receivable	431			595
Inventories	845			(2		)
Other	1,506			1,790
Valuation allowance	(3,573		)	(3,608		)
Total current	(469		)	(25		)
Non-current deferred tax asset/liabilities
Property, plant, and equipment	(14,400		)	(20,392		)
Customer relationships	(16,559		)	(19,991		)
Net operating losses	104,232			89,678
Other	6,723			4,790
Valuation allowance	(95,890		)	(72,978		)
Total non-current	(15,894		)	(18,893		)
Total, net	$	(16,363	)	$	(18,918	)

Total gross deferred tax assets were $117.2 million and $72.7 million as of December 31, 2014 and December 31, 2013, respectively. Total gross deferred tax liabilities were $34.1 million and $15.0 million as of December 31, 2014 and December 31, 2013, respectively.

U.S. taxes have been provided on certain undistributed earnings of foreign subsidiaries because of certain U.S. deemed dividend inclusion rules. The remaining undistributed earnings are considered to be permanently reinvested and therefore deferred taxes have not been provided. Upon distribution of those earnings in the form of dividends or otherwise, the Company could be subject to U.S. income taxes and withholding taxes payable to non-U.S. jurisdictions. The determination of the amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries is not practicable because of the complexities of the hypothetical calculation. All domestic NOLs and other operating loss carryforwards are potentially subject to certain statutory limitations on future use.

The Company has U.S. federal, U.S. state and foreign NOL carry forwards as follows:



	NOL		Year of
Jurisdiction	Amount		Expiration
Domestic	$	823.6	2014 - 2034
Foreign - unlimited carry forward	36.1		Unlimited
Foreign - limited carry forward	$	9.6	2020 - 2023

The Company's valuation allowance was $99.5 million and $76.6 million as of December 31, 2014 and December 31, 2013, respectively.

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



	2014			2013			2012
Balance, beginning of year	$	(76,586	)	$	(57,734	)	$	(46,323	)
Additions	(22,877		)	(18,852		)	(11,411		)
Reductions	—			—			—
Balance, end of year	$	(99,463	)	$	(76,586	)	$	(57,734	)

In 2014, 2013 and 2012, the Company recorded valuation allowances against certain of its deferred tax assets subsequent to analyzing recoverability of its gross 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:



	2014			2013			2012
Balance, beginning of year	$	(2,192	)	$	(11,209	)	$	(11,395	)
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	(336		)	—			(243		)
Additions for tax positions of prior years	(252		)	—			—
Foreign currency translation	312			(82		)	(37		)
Balance, end of year	$	(2,468	)	$	(2,192	)	$	(11,209	)

On December 31, 2014 and December 31, 2013, the gross amount of unrecognized tax benefits was $2.5 million and $2.2 million, respectively, exclusive of interest and penalties. As of December 31, 2014 and December 31, 2013, if we were to prevail on all unrecognized tax benefits, $2.5 million and $2.2 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, $0.2 million and $3.3 million in interest accrued at December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Interest and penalties recognized in 2014, 2013 and 2012 were an expense of $0.1 million, an expense of $3.2 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. In the fourth quarter of 2014, the Company received an assessment from the Dutch Taxing Authority regarding certain tax positions in its fiscal 2011 and 2012 tax filings. The assessment for fiscal years 2011 and 2012 totaled approximately $3.3 million and $3.5 million, respectfully. The Company has determined based on the facts and circumstances of the case that the Company’s position is more likely than not to be upheld on appeal. Accordingly, the Company has not recorded a reserve for any potential liability as of December 31, 2014.