Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of Company's Income Tax Provision (Benefit)

Significant components of the Company’s income tax provision (benefit) consisted of the following:


	Year Ended December 31,
	2014			2013			2012
	(In Thousands)
Current tax expense:
Federal	$	-		$	-		$	-
State		377			234			263
Foreign		68			95			93

		445			329			356
Deferred tax expense (benefit):
Federal		2,092			5,088			1,178
State		709			748			173
Foreign		301			-			-
Change in valuation allowance		-			(36,226	)		(1,323	)

		3,102			(30,390	)		28
Unrecognized tax benefit		(370	)		(28	)		17

Income tax provision (benefit)	$	3,177		$	(30,089	)	$	401

Statutory Federal Tax Rate of Income from Continuing Operations

The differences in income taxes determined by applying the statutory federal tax rate of 34% to income from continuing operations before income taxes and the amounts recorded in the accompanying consolidated statements of comprehensive income result from the following:


	Year Ended December 31,
	2014						2013						2012
	Amount			Rate			Amount			Rate			Amount			Rate
	(Dollar Amounts In Thousands)
Income tax at statutory rate	$	2,468			34.0	%	$	1,570			34.0	%	$	628			34.0	%
Add (deduct):
State income taxes, net of federal tax benefit		556			7.7			243			5.2			174			9.4
Tax rate difference on foreign income taxes		26			0.4			47			1.0			188			10.1
Tax effect of rate change on deferred tax assets		252			3.5			(169	)		(3.6	)		-			-
Non-deductible items		112			1.6			98			2.1			160			8.6
Net decrease in deferred tax attributes		183			2.5			4,370			94.6			516			27.9
Decrease in valuation allowance against certain deferred tax assets		-			-			(36,226	)		(784.3	)		(1,323	)		(71.6	)
Unrecognized tax benefits		(370	)		(5.1	)		(28	)		(0.6	)		17			0.9
Other, net		(50	)		(0.7	)		6			0.1			41			2.4

	$	3,177			43.9	%	$	(30,089	)		(651.5	)%	$	401			21.7	%

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows:


	December 31,
	2014			2013
	(In Thousands)
Deferred income tax assets:
Net operating loss carryforwards and credits	$	17,539		$	19,552
Acquired intangible assets		6,444			7,543
Reserves and accruals		1,565			1,656
Share-based compensation		2,877			2,775
Depreciation		407			346

Total deferred income tax assets		28,832			31,872
Deferred income tax liabilities:
Acquired intangible assets		(18	)		(96	)
Other		(144	)		(4	)

Total deferred income tax liabilities		(162	)		(100	)
Valuation allowance		(1,500	)		(1,500	)

Deferred income tax asset, net	$	27,170		$	30,272

Components of the Net Deferred Tax Assets

Components of the net deferred tax assets reported in the accompanying consolidated balance sheets are as follows:


	December 31, 2014						December 31, 2013
	Current			Long-term			Current			Long-term
	(In Thousands)
Assets	$	1,265		$	27,677		$	1,238		$	30,625
Liabilities		(3	)		(269	)		(4	)		(87	)
Valuation allowance		(66	)		(1,434	)		(59	)		(1,441	)

Net deferred tax asset (liability)	$	1,196		$	25,974		$	1,175		$	29,097

Deferred Tax Valuation Allowance

Annual changes to the deferred tax valuation allowance are as follows:


	Year Ended December 31,
	2014		2013			2012
	(In Thousands)
Balance, beginning of year	$	1,500	$	37,726		$	39,049
Additions		-		-			-
Reductions, net		-		(36,226	)		(1,323	)

Balance, end of year	$	1,500	$	1,500		$	37,726

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
	2014			2013			2012
	(In Thousands)
Gross unrecognized tax benefits, beginning of year	$	108		$	140		$	155
Increase in tax position in current year		-			-			-
Settlement/Expiration of statute		-			(32	)		(15	)
De-recognition through administrative policy		(99	)		-			-

Gross unrecognized tax benefits, end of year	$	9		$	108		$	140