Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The following is a summary of the Company’s provision for income taxes for the years ended December 31, 2013, 2012 and 2011:

United States and foreign income (loss) before income taxes for the years ended December 31, 2013, 2012 and 2011 is as follows:

The components of net deferred tax assets (liabilities) are as follows:


	December 31,
	2013			2012
Deferred tax assets:
Current deferred tax assets:
Deferred revenues	$	989		$	856
Allowance for doubtful accounts		887			879
Inventory		235			89
Deferred compensation		448			108
Bonus accruals		455			375
Vacation accrual		160			163
Deferred rent		15			52
Warranty accrual		668			869
Installment sale note receivable		9			9
Other		—			57

Total current deferred tax assets		3,866			3,457

Non-current deferred tax assets:
Intangibles		441			274
Acquisition related costs		653			515
Deferred revenues		958			695
Deferred compensation		2,751			2,657
Deferred rent		163			39
Accrued expenses		321			317
Installment sale note receivable		576			577
Foreign tax credit		1,646			1,646
Alternative minimum tax credit		340			308
Tax loss carryforwards and credits		1,397			4,913

Total non-current current deferred tax assets		9,246			11,941

Total deferred tax assets		13,112			15,398

Current deferred tax liabilities:
Accrued expenses		—			(19	)
Unremitted earnings of Japan Subsidiary		—			(2,455	)

Total current deferred tax liabilities		—			(2,474	)

Non-current deferred tax liabilities:
Satellite network and other property		(1,396	)		(158	)
Goodwill		(1,043	)		(397	)

Total non-current current deferred tax liabilities		(2,439	)		(555	)

Total deferred tax liabilities		(2,439	)		(3,029	)

Net deferred tax assets before valuation allowance		10,673			12,369
Less valuation allowance		(11,235	)		(12,204	)

Net deferred tax asset (liabilities)	$	(562	)	$	165

Deferred tax assets, current	$	623		$	164
Deferred tax assets, non-current		1,254			398
Deferred tax liabilities, non-current		(2,439	)		(397	)

Net deferred tax assets (liabilities)	$	(562	)	$	165

Income taxes differs from the amount computed by applying the statutory U.S. Federal income tax rate because of the effect of the following items:


	Years Ended December 31,
	2013			2012			2011
Income tax expense at U.S. statutory rate of 34%	$	2,063		$	3,500		$	262
State income taxes, net of federal benefit		466			196			566
Effect of foreign subsidiaries		7			146			630
Unremitted earnings of Japan subsidiary		—			2,455			—
Foreign tax credit		—			(1,646	)		—
Other permanent items		(193	)		(13	)		(10	)
Permanent items in connection with the purchase of noncontrolling interests in Satcom		—			(268	)		—
Change in valuation allowance		(1,048	)		(2,980	)		(621	)

Income tax	$	1,295		$	1,390		$	827

The following table is a reconciliation of the beginning and ending amount of unrecognized tax benefits:


	2013		2012		2011
Balance at January 1,	$	775	$	775	$	775
Additions for tax positions related to prior years		—		—		—
Additions for tax positions		—		—		—
Reductions for tax positions of prior years		—		—		—
Settlements		—		—		—

Balance at December 31,	$	775	$	775	$	775