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Note 8 - Income Taxes | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 8. INCOME TAXES Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities are provided to record the effects of temporary differences between the tax basis of an asset or liability and its amount as reported in our consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. The components comprising our deferred income tax assets and liabilities are as follows:
|  | December 31, |
(In thousands) |  | 2019 |  |  | 2018 |
Deferred income tax assets |  |  |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | 95,861 |  |  | $ | 102,806 |
State net operating loss carryforwards |  |  | 67,357 |  |  |  | 55,478 |
Operating lease liability |  |  | 198,800 |  |  |  | — |
Share-based compensation |  |  | 15,029 |  |  |  | 15,127 |
Other |  |  | 60,540 |  |  |  | 53,434 |
Gross deferred income tax assets |  |  | 437,587 |  |  |  | 226,845 |
Valuation allowance |  |  | (41,281 | ) |  |  | (39,516 | )
Deferred income tax assets, net of valuation allowance |  |  | 396,306 |  |  |  | 187,329 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Difference between book and tax basis of property and intangible assets |  |  | 311,365 |  |  |  | 259,495 |
State tax liability |  |  | 45,314 |  |  |  | 38,891 |
Right of use asset |  |  | 194,874 |  |  |  | — |
Other |  |  | 7,448 |  |  |  | 10,205 |
Gross deferred income tax liabilities |  |  | 559,001 |  |  |  | 308,591 |
Deferred income tax liabilities, net |  | $ | 162,695 |  |  | $ | 121,262 |
At December 31, 2019, we have unused federal general business tax credits of approximately $14.3 million which may be carried forward or used until expiration beginning in 2031 and alternative minimum tax credits of $5.5 million which may be used or refunded through 2021. We have a federal income tax net operating loss of approximately $456.5 million, which may be carried forward or used until expiration beginning in 2033, assuming no significant change in ownership. We also have state income tax net operating loss carryforwards of approximately $1,077.5 million, which may be used to reduce future state income taxes. The state net operating loss carryforwards will expire in various years ranging from 2020 to 2039, if not fully utilized. Valuation Allowance on Deferred Tax Assets Management assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. In evaluating our ability to recover deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. We have maintained a valuation allowance of $41.3 million against certain federal and state deferred tax assets as of December 31, 2019 due to uncertainties related to our ability to realize the tax benefits associated with these assets. In assessing the need to establish a valuation allowance, we consider, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of profitability and taxable income, the duration of statutory carryforward periods, our experience with the utilization of operating loss and tax credit carryforwards before expiration and tax planning strategies. Valuation allowances are evaluated periodically and subject to change in future reporting periods as a result of changes in the factors noted above. Provision (Benefit) for Income Taxes A summary of the provision (benefit) for income taxes is as follows:
|  | Year Ended December 31, |
(In thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | (584 | ) |  | $ | (10,367 | )
State |  |  | 3,475 |  |  |  | 5,897 |  |  |  | 5,335 |
Total current taxes provision (benefit) |  |  | 3,475 |  |  |  | 5,313 |  |  |  | (5,032 | )
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 44,877 |  |  |  | 29,434 |  |  |  | 6,449 |
State |  |  | (3,862 | ) |  |  | 5,584 |  |  |  | 1,698 |
Total deferred taxes provision |  |  | 41,015 |  |  |  | 35,018 |  |  |  | 8,147 |
Provision for income taxes from continuing operations |  | $ | 44,490 |  |  | $ | 40,331 |  |  | $ | 3,115 |
Provision for income taxes included on the consolidated statement of operations |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes from continuing operations |  | $ | 44,490 |  |  | $ | 40,331 |  |  | $ | 3,115 |
Provision for income taxes from discontinued operations |  |  | — |  |  |  | 136 |  |  |  | 14,855 |
Provision for income taxes from continuing operations and discontinued operations |  | $ | 44,490 |  |  | $ | 40,467 |  |  | $ | 17,970 |
Our tax provision for the year ended December 31, 2019 was favorably impacted by benefits related to equity compensation and tax credits and unfavorably impacted by non-deductible expenses. Our tax provision for the year ended December 31, 2018 was unfavorably impacted by state taxes and certain nondeductible expenses which were partially offset by utilization of tax credits. Our tax provision for the year ended December 31, 2017 was favorably impacted by the federal statutory tax rate change applied to our net deferred tax liability. Based on this revaluation, we have recorded a discrete tax benefit of $60.1 million. The following table provides a reconciliation between the federal statutory rate and the effective income tax rate, expressed as a percentage of income from continuing operations before income taxes:
|  | Year Ended December 31, |
(In thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Tax at federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 35.0 | %
Federal statutory rate change on deferred tax liability |  |  | — | % |  |  | — | % |  |  | (35.2 | )%
State income taxes, net of federal benefit |  |  | (0.2 | )% |  |  | 5.9 | % |  |  | 2.7 | %
Compensation-based credits |  |  | (1.2 | )% |  |  | (1.9 | )% |  |  | (1.0 | )%
Nondeductible expenses |  |  | 0.4 | % |  |  | 0.7 | % |  |  | 0.5 | %
Tax exempt interest |  |  | (0.2 | )% |  |  | (0.2 | )% |  |  | (0.3 | )%
Company provided benefits |  |  | 1.6 | % |  |  | 0.1 | % |  |  | 0.5 | %
Other, net |  |  | 0.4 | % |  |  | 0.4 | % |  |  | (0.4 | )%
Effective tax rate |  |  | 21.8 | % |  |  | 26.0 | % |  |  | 1.8 | %
Status of Examinations We generated net operating losses on our federal income tax returns for years 2011 through 2013. These returns remain subject to federal examination until the statute of limitations expires for the year in which the net operating losses are utilized. We are also currently under examination for various state income and franchise tax matters. As it relates to our material state returns, we are subject to examination for tax years ended on or after December 31, 2001, and the statute of limitations will expire over the period October 2020 through October 2023. We believe that we have adequately reserved for any tax liability; however, the ultimate resolution of these examinations may result in an outcome that is different than our current expectation. We do not believe the ultimate resolution of these examinations will have a material impact on our consolidated financial statements. Other Long-Term Tax Liabilities The impact of an uncertain income tax position taken in our income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. Our liability for uncertain tax positions is recorded as other long-term tax liabilities in our consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Year Ended December 31, |
(In thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Unrecognized tax benefit, beginning of year |  | $ | 2,482 |  |  | $ | 2,482 |  |  | $ | 2,482 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions related to current year |  |  | — |  |  |  | — |  |  |  | — |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions related to prior years |  |  | — |  |  |  | — |  |  |  | — |
Unrecognized tax benefit, end of year |  | $ | 2,482 |  |  | $ | 2,482 |  |  | $ | 2,482 |
Included in the $2.5 million balance of unrecognized tax benefits at December 31, 2019, are $2.0 million of federally tax effected benefits that, if recognized, would impact the effective tax rate. We recognize interest related to unrecognized tax benefits in our income tax provision. During the year ended December 31, 2019, we recognized interest and penalties of approximately $0.2 million in our tax provision. We have accrued $1.1 million and $1.0 million of interest and penalties at December 31, 2019 and 2018, respectively, in our consolidated balance sheets. We do not anticipate any material changes to our unrecognized tax benefits over the next twelve-month period.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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