Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income from Continuing Operations Income Tax Expense

Total income tax expense for the years ended December 31, 2013 and 2012 were allocated as follows (in thousands):

	2013			2012
Income from continuing operations	$	(2,384	)		1,597

(Loss) Income before Income Tax Expense

For the years ended December 31, 2013 and 2012, (loss) income before income tax expense consists of the following (in thousands):

	2013			2012
U.S. operations	$	(92,670	)		1,602
Foreign operations		1,720			(1,286	)
	$	(90,950	)		316

Summary of Total Income Tax (Benefit) Expense

The components of the provision for income tax (benefit) expense included in the consolidated statements of operations and comprehensive loss are as follows for the years ended December 31, 2013 and 2012 (in thousands):

	2013			2012
Current:
Federal	$	—			—
State and local, net of federal income tax benefit		13			342
Foreign		480			(426	)
		493			(84	)
Deferred:
Federal		592			1,603
State and local, net of federal income tax benefit		(169	)		73
Foreign		(3,300	)		5
		(2,877	)		1,681
Total income tax (benefit) expense	$	(2,384	)		1,597

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effect of temporary differences and carry-forwards that give rise to deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are as follows (in thousands):

	2013			2012
Deferred tax assets:
Federal and state net operating loss carryforwards	$	88,893			78,438
Foreign net operating loss carryforwards		14,081			12,207
FCC licenses		12,080			19,136
Allowance for doubtful accounts		2,512			1,850
Unearned revenue		210			204
AMT credit		1,194			824
Derivatives and hedging instruments		249			339
Property and equipment		1,019			413
Accrued foreign withholding		1,934			1,832
Straight-line expense adjustments		290			545
Accrued restructuring		58			396
Production costs		11,179			10,093
Stock-based compensation		1,621			1,602
Intercompany expenses		1,347			—
Other		2,339			2,940
Total gross deferred tax assets		139,006			130,819
Less valuation allowance		(134,881	)		(129,995	)
Net deferred tax assets		4,125			824
Deferred tax liabilities:
FCC licenses		87,297			86,873
Total gross deferred tax liabilities		87,297			86,873
Net deferred tax liability	$	83,172			86,049

Summary of Income Tax Rate

Total income tax expense from continuing operations differed from the amounts computed by applying the U.S. federal income tax rate of 35% for the years ended December 31, 2013 and 2012, as a result of the following:

	2013			2012
Computed “expected” tax expense		35.0	%		35.0	%
State and local income taxes, net of federal benefit		6.6			86.6
Foreign tax differential		0.2			20.4
Current year change in valuation allowance		(5.5	)		(1,314.7	)
Nondeductible expenses		(40.6	)		50.0
Change in effective rate		0.3			(71.8	)
Change in Puerto Rico statutory rate		5.7			—
Expiration of net operating losses		—			759.0
Other		0.9			940.9
		2.6	%		505.4	%