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Income Taxes
3 Months Ended
Mar. 31, 2015
Income Taxes  
Income Taxes

 

 

Note 11.  Income Taxes

 

Income tax expense relates principally to operating results of foreign entities in jurisdictions, primarily in Europe and Asia, where the Company earns taxable income. The Company has significant net operating losses in the United States and certain other tax jurisdictions and, as a result, does not pay significant income taxes in those jurisdictions.

 

As of December 31, 2014, the Company had deferred tax assets related to Federal and state jurisdictions of approximately $140.0 million.  In addition, the Company was in a three year cumulative loss position in the United States.  As such, the Company maintains a 100% valuation allowance to reduce the carrying value of these deferred tax assets to zero. The Company will continue to maintain a full valuation allowance for these tax assets until sustainable future levels of profitability are evident. See Note 3 above relating to any potential tax effect associated with the taxable gain on the sale of the Company’s corporate headquarters.