Income Taxes	6 Months Ended
Jun. 30, 2014
Income Taxes	9. Income Taxes Our income tax expense was $2.2 million and $0.9 million for the three months ended June 30, 2014 and 2013, respectively, and $2.3 million and $2.4 million for the six months ended June 30, 2014 and 2013, respectively. Our effective tax rate was 16.6% and 18.5% for the three months ended June 30, 2014 and 2013, respectively, and 46.1% and 93.9% for the six months ended June 30, 2014 and 2013, respectively. Our effective tax rates differed from the U.S. corporate statutory tax rate of 35.0%, primarily due to the mix of pre-tax income or loss earned in certain jurisdictions and the change in our valuation allowance. We record a valuation allowance when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. As of June 30, 2014 and December 31, 2013, a valuation allowance of $89.8 million and $90.0 million, respectively, has been provided for net operating loss carryforwards and other deferred tax assets. We decreased our valuation allowance by $0.7 million and $3.1 million for the three months ended June 30, 2014 and 2013, respectively, which represents the utilization of net operating losses. We decreased our valuation allowance by $0.2 million for the six months ended June 30, 2014, primarily due to the utilization of net operating losses. We increased our valuation allowance by $4.3 million for the six months ended June 30, 2013, of which $4.5 million represents current period net operating losses, partially offset by $0.2 million which represents changes in other comprehensive income (loss). Excluding the change in our valuation allowance, our effective tax rate would have been 21.7% and 81.1% for the three months ended June 30, 2014 and 2013, respectively, and 50.2% and an 88.1% benefit for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014 and December 31, 2013, we had total unrecognized tax benefits of $6.9 million and $6.4 million, respectively, related to uncertain foreign tax positions, all of which, if recognized, would impact our effective tax rate. During the three months ended June 30, 2014 and 2013, we had an increase in uncertain tax positions of $0.2 million and $0.6 million, respectively, and $0.5 million and $1.1 million during the six months ended June 30, 2014 and 2013, respectively, primarily related to uncertain tax positions in Europe. We recorded interest and penalties related to unrecognized tax benefits within the provision for income taxes. We believe that no current tax positions that have resulted in unrecognized tax benefits will significantly increase or decrease within one year. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. For our U.S. federal income tax returns, the statute of limitations has expired through the tax year ended December 31, 2003. As a result of net operating loss carryforwards from 2004, the statute of limitations remains open for all years subsequent to 2003. In addition, open tax years for state and foreign jurisdictions remain subject to examination.

9. Income Taxes

Our income tax expense was $2.2 million and $0.9 million for the three months ended June 30, 2014 and 2013, respectively, and $2.3 million and $2.4 million for the six months ended June 30, 2014 and 2013, respectively. Our effective tax rate was 16.6% and 18.5% for the three months ended June 30, 2014 and 2013, respectively, and 46.1% and 93.9% for the six months ended June 30, 2014 and 2013, respectively. Our effective tax rates differed from the U.S. corporate statutory tax rate of 35.0%, primarily due to the mix of pre-tax income or loss earned in certain jurisdictions and the change in our valuation allowance.

We record a valuation allowance when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. As of June 30, 2014 and December 31, 2013, a valuation allowance of $89.8 million and $90.0 million, respectively, has been provided for net operating loss carryforwards and other deferred tax assets. We decreased our valuation allowance by $0.7 million and $3.1 million for the three months ended June 30, 2014 and 2013, respectively, which represents the utilization of net operating losses. We decreased our valuation allowance by $0.2 million for the six months ended June 30, 2014, primarily due to the utilization of net operating losses. We increased our valuation allowance by $4.3 million for the six months ended June 30, 2013, of which $4.5 million represents current period net operating losses, partially offset by $0.2 million which represents changes in other comprehensive income (loss). Excluding the change in our valuation allowance, our effective tax rate would have been 21.7% and 81.1% for the three months ended June 30, 2014 and 2013, respectively, and 50.2% and an 88.1% benefit for the six months ended June 30, 2014 and 2013, respectively.

As of June 30, 2014 and December 31, 2013, we had total unrecognized tax benefits of $6.9 million and $6.4 million, respectively, related to uncertain foreign tax positions, all of which, if recognized, would impact our effective tax rate. During the three months ended June 30, 2014 and 2013, we had an increase in uncertain tax positions of $0.2 million and $0.6 million, respectively, and $0.5 million and $1.1 million during the six months ended June 30, 2014 and 2013, respectively, primarily related to uncertain tax positions in Europe. We recorded interest and penalties related to unrecognized tax benefits within the provision for income taxes. We believe that no current tax positions that have resulted in unrecognized tax benefits will significantly increase or decrease within one year.

We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. For our U.S. federal income tax returns, the statute of limitations has expired through the tax year ended December 31, 2003. As a result of net operating loss carryforwards from 2004, the statute of limitations remains open for all years subsequent to 2003. In addition, open tax years for state and foreign jurisdictions remain subject to examination.