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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Taxes  
Income Taxes

Note 11.Income Taxes

 

Income tax expense relates principally to operating results of foreign subsidiaries in Europe and Asia, where the Company earns taxable income and does not have offsetting net operating loss carryforwards. The Company has significant net operating loss carryforwards available to offset income taxes in the U.S. and certain foreign tax jurisdictions and, as a result, has not provided for significant income taxes in those jurisdictions.

 

As of December 31, 2014, the Company had deferred tax assets related to the U.S. of approximately $140.0 million.  The Company maintains a 100% valuation allowance to reduce the carrying value of these deferred tax assets to zero because the Company is in a three year cumulative loss position in the United States.  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 the potential effect associated with the taxable gain on the sale of the Company’s corporate headquarters.