Income Taxes (Tables)

12 Months Ended

Dec. 27, 2014

Significant Components of Provision (Benefit) for Income Taxes for Continuing Operations

Significant components of the provision (benefit) for income taxes for continuing operations are as follows:


(in thousands)	2014			2013			2012
Current:
U.S. Federal	$	(307	)	$	(1,538	)	$	(1,898	)
U.S. State		40			42			(388	)
Foreign		4,047			825			831

Total current		3,780			(671	)		(1,455	)
Deferred:
U.S. Federal		(1,207	)		286			1,890
U.S. State		(17	)		26			186
Foreign		737			(2,444	)		(1,495	)

Total deferred		(487	)		(2,132	)		581

	$	3,293		$	(2,803	)	$	(874	)

Income (Loss) Before Income Taxes from Continuing Operations

Income (loss) before income taxes from continuing operations consisted of the following:


(in thousands)	2014			2013			2012
U.S.	$	(3,898	)	$	(29,219	)	$	(10,066	)
Foreign		13,026			(7,844	)		(2,930	)

Total	$	9,128		$	(37,063	)	$	(12,996	)

Significant Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of our deferred tax assets and liabilities were as follows:


(in thousands)	2014			2013
Deferred tax assets:
Inventory, receivable and warranty reserves	$	9,585		$	13,290
Net operating loss carryforwards		8,266			9,070
Tax credit carryforwards		11,905			11,258
Accrued employee benefits		5,232			3,709
Deferred profit		1,091			839
Stock-based compensation		4,352			3,972
Acquisition basis differences		2,133			2,105
Depreciation and fixed asset related		1,001			831
Other		608			121

Gross deferred tax assets		44,173			45,195
Less valuation allowance		(37,023	)		(36,064	)

Total deferred tax assets		7,150			9,131
Deferred tax liabilities:
Depreciation and fixed asset related		2,823			2,909
Acquisition basis differences		10,600			13,193
Other		643			461

Total deferred tax liabilities		14,066			16,563

Net deferred tax liabilities	$	(6,916	)	$	(7,432	)

Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rate to Provision (Benefit) for Income Taxes for Continuing Operations

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes for continuing operations is as follows:


(in thousands)	2014			2013			2012
Tax provision (credit) at U.S. 35% statutory rate	$	3,194		$	(12,972	)	$	(4,548	)
State income taxes, net of federal tax benefit		119			(1,112	)		(645	)
Settlements, adjustments and releases from statute expirations		(103	)		(846	)		366
Change in effective tax rate for deferred balances		—			—			346
Federal tax credits		(244	)		(1,340	)		—
Stock-based compensation on which no tax benefit provided		160			168			177
Change in valuation allowance		1,072			11,283			2,572
Foreign income taxed at different rates		(2,055	)		1,526			(227	)
Non-deductible goodwill impairment charge and transaction costs		1,069			—			700
Other, net		81			490			385

	$	3,293		$	(2,803	)	$	(874	)

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of our gross unrecognized tax benefits, excluding accrued interest and penalties, is as follows:


(in thousands)	2014			2013			2012
Balance at beginning of year	$	10,483		$	6,080		$	5,381
Gross additions for tax positions of current year		761			933			776
Gross additions for tax positions of prior years		365			3,700			195
Reductions due to lapse of the statute of limitations		(587	)		—			(272	)
Foreign exchange rate impact		(181	)		(230	)		—

Balance at end of year	$	10,841		$	10,483		$	6,080