Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Total Income Tax (Benefit) Expense

Total income tax expense (benefit) for the years ended December 31, 2015 and 2014 were as follows (in thousands):

	2015				2014
Income tax expense (benefit)	$	11,225			$	5,842

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, 2015 and 2014 (in thousands):

	2015		2014
Current:
Federal	$	—	—
State and local, net of federal income tax benefit		10		43
Foreign		298		165
		308		208

Deferred:
Federal		6,458		3,135
State and local, net of federal income tax benefit		2,126		1,421
Foreign		2,333		1,078
		10,917		5,634
Total income tax (benefit) expense	$	11,225	$	5,842

(Loss) Income before Income Tax Expense

For the years ended December 31, 2015 and 2014, (loss) income before income tax expense consists of the following (in thousands):

	2015			2014
U.S. operations	$	(14,078	)	$	(14,800	)
Foreign operations		(1,652	)		691
	$	(15,730	)	$	(14,109	)

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, 2015 and 2014 are as follows (in thousands):

	2015			2014
Deferred tax assets:
Federal and state net operating loss carryforwards	$	109,020		$	102,728
Foreign net operating loss carryforwards		12,506			12,917
FCC licenses		6,291			6,982
Allowance for doubtful accounts		1,133			1,489
Unearned revenue		333			187
AMT credit		1,120			1,039
Derivatives and hedging instruments		254			248
Property and equipment		2,056			1,887
Accrued foreign withholding		2,136			2,034
Straight-line expense adjustments		31			154
Accrued restructuring		11			45
Production costs		11,535			11,663
Stock-based compensation		1,649			1,629
Intercompany expenses		3,624			2,420
Accrued Vacation/Bonus/Payroll		1,067			840
Other		1,620			2,234
Total gross deferred tax assets		154,386			148,496
Less valuation allowance		(151,273	)		(142,957	)
Net deferred tax assets		3,113			5,539
Deferred tax liabilities:
FCC licenses and goodwill		100,421			91,930
Total gross deferred tax liabilities		100,421			91,930
Net deferred tax liability	$	97,308			86,391

Summary of Income Tax Expense From Continuing Operations

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, 2015 and 2014, as a result of the following:

	2015				2014
Computed “expected” tax (benefit) expense		(35.0	)	%		(35.0	)
State and local income taxes, net of federal benefit		1.1				(7.7	)
Foreign tax differential		(1.3	)			(1.2	)
Current year change in valuation allowance		52.7				73.8
Nondeductible expenses		2.8				5.9
Nondeductible interest expense		21.7				—
Change in effective rate		5.3				6.0
Return to provision		23.5				0.6
Other		0.6				(1.0	)
		71.4		%		41.4