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Income Taxes
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes

7. INCOME TAXES

The provision for income taxes for the three-month periods ended June 30, 2014 and 2013 was $1.1 million and $0.8 million, respectively. The provision for income taxes for the six-month periods ended June 30, 2014 and 2013 was $1.5 million and $1.4 million, respectively. The tax provision for the three and six-month periods ended June 30, 2014 consisted primarily of taxes on income in foreign jurisdictions, interest, and penalties recorded in relation to the Company’s uncertain tax positions. The tax provision for the three and six-month periods ended June 30, 2013 consisted primarily of taxes on income in foreign jurisdictions, interest, and penalties recorded in relation to the Company’s uncertain tax positions.

The balance of unrecognized tax benefits at June 30, 2014, not including interest and penalties, was $3.6 million, which, if recognized, would affect the effective income tax rate in future periods. Lionbridge also recognizes interest and penalties related to unrecognized tax benefits in tax expense. At June 30, 2014, Lionbridge had approximately $1.4 million of interest and penalties accrued related to unrecognized tax benefits.

The Company conducts business globally and in the normal course of business is subject to examination by local, state and federal jurisdictions in the United States as well as in multiple foreign jurisdictions. Currently, no Internal Revenue Service audits are underway and audits in Canada, Finland, France, Poland, and India are in varying stages of completion. Open audit years are dependent upon the tax jurisdiction and range from 2006 to present.

At June 30, 2014, no provision for U.S. income and foreign withholding taxes has been made for unrepatriated foreign earnings because it is expected that such earnings will be reinvested indefinitely.

Lionbridge’s management has evaluated the positive and negative evidence as it relates to the realizability of its deferred tax assets. Under the applicable accounting standards, management has considered Lionbridge’s history of losses and concluded that, with the exception of certain foreign tax jurisdictions, it is more-likely-than-not that Lionbridge will not generate sufficient future taxable income to benefit from the tax assets prior to their expiration. Accordingly, full valuation allowances have been maintained against those tax assets. As a result, no income tax benefit has been recorded for the losses incurred in the U.S. and certain foreign jurisdictions during the six-month period ended June 30, 2014 and 2013.