INCOME TAXES

A reconciliation of the U.S. statutory federal income tax rate with the effective tax rates for the second quarter of fiscal 2014 and 2013 is as follows:



	Three months ended February 28,
	2014					2013
	(In thousands, except for %’s)
U.S. statutory federal income tax rate	$	3,526		35.0	%	$	2,785		35.0	%
Amount of foreign taxes at less than U.S. statutory federal income tax rate	(3,878		)	(38.4	)	(1,355		)	(17.0	)
U.S. and foreign losses with no tax benefit	2,815			27.9		1,161			14.6
U.S. restructuring and other U.S. charges with no benefit	868			8.6		231			2.9
Valuation allowance changes	—			—		(7,049		)	(88.6	)
Establishment (resolution) of uncertain tax positions	(70		)	(0.7	)	(422		)	(5.3	)
Other	166			1.6		299			3.8
Total income tax expense (benefit)	$	3,427		34.0	%	$	(4,350	)	(54.6	)%

A reconciliation of the U.S. statutory federal income tax rate with the effective tax rates for the six months ended February 28, 2014 and 2013 is as follows:



	Six months ended February 28,
	2014					2013
	(In thousands, except for %’s)
U.S. statutory federal income tax rate	$	9,546		35.0	%	$	8,237		35.0	%
Amount of foreign taxes at less than U.S. statutory federal income tax rate	(7,674		)	(28.1	)	(4,603		)	(19.5	)
U.S. and foreign losses with no tax benefit	4,600			16.9		1,941			8.2
U.S. restructuring and other U.S. charges with no benefit	1,342			4.9		554			2.4
Valuation allowance changes	—			—		(7,049		)	(30.0	)
Establishment (resolution) of uncertain tax positions	(14		)	(0.1	)	(253		)	(1.1	)
Other	195			0.7		260			1.1
Total income tax expense (benefit)	$	7,995		29.3	%	$	(913	)	(3.9	)%

The effective tax rates for the three months and six months ended February 28, 2014 and 2013 are less than the U.S. statutory federal income tax rate primarily because of the Company's overall foreign tax rates being less than the U.S. statutory federal income tax rate and the valuation allowance decrease for the three months and six months ended February 28, 2013. In January 2014, Mexico made significant changes to its tax laws which resulted in the recognition of a $0.8 million tax benefit, which is included in the amount of foreign taxes at less than the U.S. statutory federal income tax rate. These favorable effects on the Company's tax rate were partially offset by no tax benefits being recognized for U.S. and certain foreign losses.

The increase in the effective tax rate as compared with the same period last year was driven primarily by the valuation allowance adjustment in the three months and six months ended February 28, 2013. There was also a significant increase in the amount of U.S. and certain foreign losses with no tax benefits as well as U.S. restructuring and other U.S. charges with no tax benefits which were primarily offset by increases in income in foreign jurisdictions taxed at rates less than the U.S. statutory federal income tax rate.

As of February 28, 2014, the Company's gross unrecognized tax benefits totaled $5.5 million. If recognized, $3.8 million of the total unrecognized tax benefits would favorably affect the Company's effective tax rate. The Company reports interest and penalties related to income tax matters in income tax expense. As of February 28, 2014, the Company had $1.0 million of accrued interest and penalties on unrecognized tax benefits.

The Company is open to potential income tax examinations in Germany from fiscal 2005 onward, in the U.S. and France from fiscal 2010 onward and in Belgium from fiscal 2011 onward. The Company is open to potential examinations from fiscal 2008 onward for most other foreign jurisdictions.

The amount of unrecognized tax benefits is expected to change in the next 12 months; however, the change is not expected to have a significant impact on the financial position of the Company.