Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Pretax (Loss) Income from Continuing Operations

The components of pretax loss from continuing operations for the years ended December 31, 2015, 2014 and 2013 are as follows (dollars in thousands):

	For the Year Ended December 31,
	2015			2014			2013
U.S	$	(94,438	)	$	(138,826	)	$	(169,345	)
Foreign		-			-			522
Total	$	(94,438	)	$	(138,826	)	$	(168,823	)

Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations

The (benefit from) provision for income taxes from continuing operations for the years ended December 31, 2015, 2014 and 2013 consists of the following (dollars in thousands):

	For the Year Ended December 31,
	2015			2014			2013
Current benefit
Federal	$	(364	)	$	(10,168	)	$	(22,904	)
State and local		(2,279	)		(346	)		(4,140	)
Total current benefit		(2,643	)		(10,514	)		(27,044	)
Deferred (benefit) provision
Federal		(126,465	)		13,445			27,716
State and local		(18,346	)		805			(216	)
Total deferred (benefit) provision		(144,811	)		14,250			27,500
Total (benefit from) provision for income taxes	$	(147,454	)	$	3,736		$	456

Schedule of Reconciliation of the Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations

A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2015, 2014 and 2013 is as follows:

	For the Year Ended December 31,
	2015				2014				2013
Statutory U.S. federal income tax rate		(35.0	)	%		(35.0	)	%		(35.0	)	%
State and local income taxes		(2.7	)			(2.6	)			(4.0	)
Nondeductible goodwill		-				0.6				1.8
Valuation allowance		0.6				37.0				44.8
Valuation allowance release		(116.3	)			-				-
Federal audit settlement		-				2.4				-
Tax credits		(0.2	)			-				(3.2	)
Other		(2.5	)			0.3				(4.1	)
Effective income tax rate		(156.1	)	%		2.7		%		0.3		%

Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2015, 2014 and 2013 is as follows (dollars in thousands):

	2015			2014			2013
Gross unrecognized tax benefits, beginning of the year	$	9,318		$	13,900		$	24,479
Additions for tax positions of prior years		19			129			3,582
Reductions for tax positions of prior years		(20	)		-			-
Additions for tax positions related to the current year		864			931			813
Reductions due to settlements		-			(4,064	)		(13,707	)
Reductions due to lapse of applicable statute of limitations		(2,444	)		(1,578	)		(1,267	)
Subtotal		7,737			9,318			13,900
Interest and penalties		1,986			2,820			3,107
Total gross unrecognized tax benefits, end of the year	$	9,723		$	12,138		$	17,007

Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operation

Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2015 and 2014 are as follows (dollars in thousands):

	December 31,
	2015			2014
Deferred income tax assets:
Accrued occupancy	$	4,191		$	2,024
Deferred rent obligations		9,281			13,757
Foreign tax credits		32,998			32,998
Valuation allowance foreign tax credits		(32,998	)		(6,264	)
Compensation and employee benefits		12,751			14,405
Tax net operating loss carry forwards		61,982			34,067
Valuation allowance		(8,196	)		(34,067	)
Allowance for doubtful accounts		3,967			3,610
Covenant not-to-compete		11			58
Accrued settlements and legal		938			1,631
Deferred compensation		520			1,777
Accrued restructuring and severance		6,014			1,072
Equity method for investments		256			19
General business tax credits		699			450
Illinois edge credits		6,351			6,351
Valuation allowance edge credits		(6,351	)		(6,351	)
Depreciation and amortization		47,453			32,846
Other		712			1,059
Valuation allowance deferred tax assets		-			(96,061	)
Total deferred income tax assets		140,579			3,381
Deferred income tax liabilities:
Other		2,863			3,381
Total deferred income tax liabilities		2,863			3,381
Net deferred income tax assets	$	137,716		$	-