XML 47 R28.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Components of Current and Deferred Income Tax Expense

The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2015, 2014 and 2013 as determined in accordance with ASC 740, Income Taxes (“ASC 740”), are as follows:

 

     Year Ended December 31,  
     2015      2014      2013  

Current:

        

Federal

   $ 1,598       $ —        $ —    

State and local

     2,431         94         —    

Foreign

     210         —          —    
  

 

 

    

 

 

    

 

 

 
     4,239         94         —    
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

     46,784         10,739         —    

State and local

     6,233         1,664         —    

Foreign

     (123      —          —    
  

 

 

    

 

 

    

 

 

 
     52,894         12,403         —    
  

 

 

    

 

 

    

 

 

 

Income tax expense from operations

   $ 57,133       $ 12,497       $ —    
  

 

 

    

 

 

    

 

 

 
Schedule of Net Operating Losses for Tax Purposes

The Company has generated net operating losses for tax purposes (“NOLs”) during the year ended December 31, 2013 and prior periods which may be used to minimize income taxes. The following table provides a summary of the NOL activity for the years indicated:

 

     Year Ended December 31,  
     2015      2014      2013  

Beginning NOLs

   $ (109,839    $ (140,959    $ (136,515

2014 return to provision adjustment

     3,906         —          —    

U.S. GAAP income

     143,665         77,609         51,537   

Tax differences:

        

Temporary

     11,804         (1,425      5,580   

Permanent

     (73,175      (45,064      (61,561

State taxes

     (2,431      —          —    
  

 

 

    

 

 

    

 

 

 

Ending NOLs

   $ (26,070    $ (109,839    $ (140,959
  

 

 

    

 

 

    

 

 

 
Schedule of Net Operating Loss Expiration

Prior to the consideration of any limitations imposed due to ownership changes, the Company’s available NOLs will expire as follows:

 

Year Ending December 31:

  

2019

   $ 5,078   

2021

     579   

2023

     608   

2024

     1,942   

2032

     13,419   

2033

     4,444   
  

 

 

 
   $ 26,070   
  

 

 

 
Schedule of Annual Limitations for Net Operating Losses

The amounts summarized above are subject to the following annual limitations as indicated by the years such NOLs were incurred:

 

NOLs generated between

   Total      Annual
Prospective
Limitation
     Amount
Deemed
Worthless
 

1998 — 2004

   $ 8,207       $ 524       $ 3,487   

2005 — 2013

     17,863         —          —    
  

 

 

    

 

 

    

 

 

 

NOLs

   $ 26,070       $ 524       $ 3,487   
  

 

 

    

 

 

    

 

 

 
Schedule of Reconciliation of Gross Net Operating Loss

A reconciliation of the NOLs presented above and the amount utilized in calculating the deferred tax asset at December 31, 2015 and 2014, respectively, is as follows:

 

     December 31,  
     2015     2014  

NOLs

   $ 26,070      $ 109,839   

NOLs deemed worthless

     (3,487     (3,487

Unrecognized stock-based compensation

     (17,863     (101,108
  

 

 

   

 

 

 

Gross NOLs available for deferred tax asset

     4,720        5,244   

Tax rate

     38.74     38.38
  

 

 

   

 

 

 

Tax affected

   $ 1,828      $ 2,013   
  

 

 

   

 

 

 
Deferred Tax Assets

At December 31, 2015 and 2014, the composition of the deferred tax asset is summarized as follows:

 

     December 31,  
     2015      2014  

Deferred tax assets:

     

NOLs

   $ 1,828       $ 2,013   

Foreign NOLs

     2,051         816   

Stock-based compensation

     4,868         6,046   

Accrued expenses

     10,197         5,236   

Deferred rent liability

     2,116         2,170   

Other

     82         82   
  

 

 

    

 

 

 

Deferred tax assets

     21,142         16,363   

Deferred tax liabilities:

     

Incentive compensation

     2,753         4,092   

Fixed assets

     2,272         1,965   

Unrealized gains

     (5       
  

 

 

    

 

 

 

Deferred tax liabilities

     5,020         6,057   

Total deferred tax assets less deferred tax liabilities

     16,122         10,306   

Less: valuation allowance

     (2,051      (816
  

 

 

    

 

 

 

Net deferred tax assets and liabilities

   $ 14,071       $ 9,490   
  

 

 

    

 

 

 
Reconciliation of Statutory Federal Income Tax Rate and Company's Effective Rate

A reconciliation of the statutory federal income tax rate of 35% and the Company’s effective rate is as follows:

 

     December 31,  
     2015     2014     2013  

Federal statutory rate

     35.00     35.00     35.00

Permanent differences

     0.69     0.69     0.09

State income tax rate, net of federal benefit

     4.11     1.55     10.06

Foreign tax differential

     0.82     0.82     —    

Change in valuation allowance

     0.90     (27.74 %)      (45.13 %) 

Change in effective state rate

     (0.06 %)      6.86     —    

Other differences, net

     0.19     (0.19 %)      (0.02 %) 
  

 

 

   

 

 

   

 

 

 

Effective rate

     41.65     16.99     0.00