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Note 12 - Income Taxes and Deferred Tax Asset/Liability | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
12. | Income Taxes and Deferred Tax Asset/Liability
The Company’s policy is to recognize interest related to any underpayment of taxes as interest expense, and penalties as administrative expenses. No interest or penalties have been accrued at December 31, 2014 and 2013, and interest and penalties for the year ended December 31, 2012 were not significant. The Company’s U.S. federal income tax returns for 2011 and later years are open and subject to examination by the I.R.S. In addition, the Company’s state income tax returns for 2010 and later years are open and subject to examination. Current income tax expense represents federal and state income tax paid or expected to be payable for the years shown in the consolidated statements of operations. The income tax expense (benefit) in the accompanying consolidated financial statements consists of the following (amounts in thousands):
|  | Years Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current tax expense (benefit) |  | $ | 632 |  |  | $ | (3,928 | ) |  | $ | 588 |
Deferred tax expense (benefit) |  |  | - |  |  |  | 5,150 |  |  |  | (1,167 | )
Total tax expense (benefit) |  | $ | 632 |  |  | $ | 1,222 |  |  | $ | (579 | )
Deferred tax assets and liabilities consist of the following (amounts in thousands):
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | Current |  |  | Long Term |  |  | Current |  |  | Long Term |
Assets related to: |  |  |  |  |  |  |  |  |  |  |  |
Accrued compensation and other |  | $ | 1,059 |  |  | $ | 809 |  |  | $ | 265 |  |  | $ | 451 |
Amortization and impairment of goodwill |  |  | - |  |  |  | 10,816 |  |  |  | - |  |  |  | 11,108 |
Accreted interest to put |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 985 |
Contingency on lawsuit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 106 |
Noncontrolling interest |  |  | - |  |  |  | 2,326 |  |  |  | - |  |  |  | 1,439 |
Deferred revenue |  |  | 125 |  |  |  | - |  |  |  | 6,993 |  |  |  | - |
Revaluation of put/call liabilities |  |  | - |  |  |  | 8,471 |  |  |  | - |  |  |  | 5,127 |
Net operating loss carryforwards |  |  | - |  |  |  | 27,172 |  |  |  | - |  |  |  | 18,302 |
Valuation allowance for deferred tax assets |  |  | (1,184 | ) |  |  | (35,393 | ) |  |  | (7,258 | ) |  |  | (23,773 | )
Liabilities related to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation of property and equipment |  |  | - |  |  |  | (14,186 | ) |  |  | - |  |  |  | (12,669 | )
Other |  |  | - |  |  |  | (15 | ) |  |  | - |  |  |  | (1,076 | )
Net asset |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
The income tax provision (benefit) differs from the amount using the statutory federal income tax rate of 35% for the following reasons (amounts in thousands):
|  | Years Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | Amount |  |  | % |  |  | Amount |  |  | % |  |  | Amount |  |  | % |
Tax expense (benefit) at the U.S. federal statutory rate |  | $ | (1,608 | ) |  |  | 35.0 | % |  | $ | (24,081 | ) |  |  | 35.0 | % |  | $ | 5,997 |  |  |  | 35.0 | %
State tax based on income, net of refunds and federal benefits |  |  | (155 | ) |  |  | 3.4 |  |  |  | (1,280 | ) |  |  | 1.8 |  |  |  | (58 | ) |  |  | (0.3 | )
Taxes on subsidiaries’ and joint ventures’ earnings allocated to noncontrolling interests owners |  |  | (2,365 | ) |  |  | 51.5 |  |  |  | (1,375 | ) |  |  | 2.0 |  |  |  | (5,938 | ) |  |  | (34.7 | )
Tax benefits of Domestic Production Activities Deduction |  |  | - |  |  |  |  |  |  |  | - |  |  |  | - |  |  |  | (84 | ) |  |  | (0.5 | )
Impairment associated with goodwill that is not amortizable for tax |  |  | - |  |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Valuation Allowance |  |  | 4,152 |  |  |  | (90.4 | ) |  |  | 28,215 |  |  |  | (41.0 | ) |  |  | - |  |  |  | - |
Reduction of tax receivable |  |  | 524 |  |  |  | (11.4 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Non-taxable interest income |  |  | - |  |  |  |  |  |  |  | (195 | ) |  |  | 0.3 |  |  |  | (529 | ) |  |  | (3.1 | )
Other permanent differences |  |  | 84 |  |  |  | (1.9 | ) |  |  | (62 | ) |  |  | 0.1 |  |  |  | 33 |  |  |  | 0.2 |
Income tax expense (benefit) |  | $ | 632 |  |  |  | (13.8 | )% |  | $ | 1,222 |  |  |  | (1.8 | )% |  | $ | (579 | ) |  |  | (3.4 | )%
We have federal and state income tax net operating loss (“NOL”) carryforwards of $73.1 million and $36.4 million, which will expire at various dates in the next 20 years for U.S. federal income tax and in the next 6 to 20 years for the various state jurisdictions where we operate. Such NOL carryforwards expire as follows (amounts in thousands):
Year |  | Amount |
2020 |  | $ | 15 |
2021 |  |  | 50 |
2028 |  |  | 8,744 |
2029 |  |  | 3,410 |
2033 |  |  | 70,003 |
2034 |  |  | 27,312 |
Total |  | $ | 109,534 |
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2014. The cumulative three-year period loss that remained in the fourth quarter 2014 was the result of write-downs recorded during the year. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, as of December 31, 2014, a valuation allowance of $36.6 million has been recorded on the net deferred tax assets including federal and state net operating losses as they are not likely to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if objective negative evidence or cumulative losses are no longer present and additional weight may be given to subjective evidence such as our projections for growth. If our assumptions change and we determine we will be able to realize these NOLs, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of December 31, 2014, will be accounted for as follows: approximately $34.0 million will be recognized as a reduction of income tax expense and $2.6 million will be recorded as an increase in equity. As a result of certain realization requirements by GAAP, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2014, and December 31, 2013, that arose directly from (or the use of which was postponed by) tax deductions related to equity compensation that are greater than the compensation recognized for financial reporting. Equity will be increased by $16,000 if and when such deferred tax assets are ultimately realized. On September 13, 2013, the U.S. Treasury Department and the I.R.S. issued final regulations that address costs incurred in acquiring, producing, or improving tangible property (the "tangible property regulations"). The tangible property regulations are generally effective for tax years beginning on or after January 1, 2014. The Company intends to adopt the tax treatment of expenditures to improve tangible property and the capitalization of inherently facilitative costs to acquire tangible property as of January 1, 2014. The tangible property regulations will require the Company to make additional tax accounting method changes as of January 1, 2014; however, management does not anticipate the impact of these changes to be material to the Company’s consolidated financial position, its results of operations, or both. As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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