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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | (9) Income Taxes The following is an analysis of the consolidated income tax provision (benefit):
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2015 |  |  | 2016 |
|  | (In thousands) |
Current - Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
- State |  |  | (12 | ) |  |  | 804 |  |  |  | 64 |
Deferred - Federal |  |  | (27,652 | ) |  |  | (149,171 | ) |  |  | — |
- State |  |  | 2,975 |  |  |  | (6,078 | ) |  |  | 7,105 |
|  | $ | (24,689 | ) |  | $ | (154,445 | ) |  | $ | 7,169 |
Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The difference between the Company's effective tax rate and the 35% federal statutory rate is caused by non-deductible stock compensation, state taxes and the establishment of a valuation allowance on deferred taxes. The impact of these items varies based upon the Company's full year loss and the jurisdictions that are expected to generate the projected losses. In recording deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The valuation allowances recognized and the related tax effect for 2014, 2015 and 2016 are as follows:
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2015 |  |  | 2016 |
|  | (In thousands) |
Federal taxes: |  |  |  |  |  |  |  |  |  |  |  |
Valuation allowance |  | $ | — |  |  | $ | 775,304 |  |  | $ | 132,482 |
Tax effect |  |  | — |  |  |  | 271,356 |  |  |  | 46,369 |
State taxes: |  |  |  |  |  |  |  |  |  |  |  |
Valuation allowance |  |  | 213,066 |  |  |  | 264,188 |  |  |  | 434,561 |
Tax effect |  |  | 11,099 |  |  |  | 12,228 |  |  |  | 23,521 |
The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. The difference between the Company's customary rate of 35% and the effective tax rate on losses is due to the following:
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2015 |  |  | 2016 |
|  | (In thousands) |
Tax benefit at statutory rate |  | $ | (28,630 | ) |  | $ | (420,544 | ) |  | $ | (44,788 | )
Tax effect of: |  |  |  |  |  |  |  |  |  |  |  |
Nondeductible compensation |  |  | 756 |  |  |  | 539 |  |  |  | 73 |
State taxes, net of federal tax benefit |  |  | (8,121 | ) |  |  | (18,218 | ) |  |  | (18,860 | )
Valuation allowance on deferred tax assets |  |  | 11,099 |  |  |  | 283,585 |  |  |  | 69,890 |
Other |  |  | 207 |  |  |  | 193 |  |  |  | 854 |
Total |  | $ | (24,689 | ) |  | $ | (154,445 | ) |  | $ | 7,169 |
|  | For the Years Ended December 31, |
|  | 2014 |  |  | 2015 |  |  | 2016 |
Statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Tax effect of: |  |  |  |  |  |  |  |  |  |  |  |
Nondeductible compensation |  |  | (0.9 | ) |  |  | — |  |  |  | (0.1 | )
State taxes, net of federal tax benefit |  |  | 9.9 |  |  |  | 1.4 |  |  |  | 14.7 |
Valuation allowance on deferred tax assets |  |  | (13.6 | ) |  |  | (23.5 | ) |  |  | (54.6 | )
Other |  |  | (0.2 | ) |  |  | — |  |  |  | (0.6 | )
Effective tax rate |  |  | 30.2 | % |  |  | 12.9 | % |  |  | (5.6 | %)
The tax effects of significant temporary differences representing the net deferred tax liability at December 31, 2015 and 2016 were as follows:
|  | 2015 |  |  | 2016 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Property and equipment |  | $ | 58,993 |  |  | $ | 15,164 |
Net operating loss carryforwards |  |  | 255,571 |  |  |  | 339,914 |
Alternative minimum tax carryforward |  |  | 20,435 |  |  |  | 20,435 | Alternative minimum tax carryforward
Unrealized hedging loss |  |  | — |  |  |  | 2,110 |
Gain on debt exchange |  |  | — |  |  |  | 20,194 |
Other |  |  | 7,895 |  |  |  | 8,523 |
|  |  | 342,894 |  |  |  | 406,340 |
Valuation allowance on deferred tax assets |  |  | (330,372 | ) |  |  | (398,120 | )
Deferred tax assets |  |  | 12,522 |  |  |  | 8,220 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (9,047 | ) |  |  | (9,203 | )
Unrealized hedging income |  |  | (506 | ) |  |  | — |
Original issue discount |  |  | — |  |  |  | (4,025 | )
Other |  |  | (4,934 | ) |  |  | (4,118 | )
Deferred tax liabilities |  |  | (14,487 | ) |  |  | (17,346 | )
Net deferred tax liability |  | $ | (1,965 | ) |  | $ | (9,126 | )
At December 31, 2016, Comstock had the following carryforwards available to reduce future income taxes:
Types of Carryforward |  |  | Years of Expiration Carryforward |  | Amount |
|  |  |  |  | (In thousands) |
Net operating loss - U.S. federal |  |  | 2017 – 2036 |  | $ | 745,190 |
Net operating loss – state taxes |  |  | 2020 – 2036 |  | $ | 1,521,847 |
Alternative minimum tax credits |  |  | Unlimited |  | $ | 20,435 |
At December 31, 2016, the Company had $745.2 million in U.S. federal net operating loss carryforwards and $1.5 billion in certain state net operating loss carryforwards. A valuation allowance has been established against all of the federal loss carryforwards and $1.4 billion of the state loss carryforwards due to the uncertainty of generating future taxable income prior to the expiration of the net operating loss carryforward periods. Future use of the Company's federal and state net operating loss carryforwards may be limited in the event that a cumulative change in the ownership of Comstock's common stock by more than 50% occurs within a three-year period. Such a change in ownership would result in a substantial portion of Comstock's net operating loss carryforwards being eliminated or becoming restricted, and the Company would need to recognize additional valuation allowances reflecting the restricted use of the net operating loss carryforwards in the period when such an ownership change occurred. It is highly likely that a change in ownership that would result from conversion of the Company’s convertible notes would result in limits on the future use of its net operating loss carryforwards. The Company's federal income tax returns for the years subsequent to December 31, 2012 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for the year ended December 31, 2008 and for various periods subsequent to December 31, 2010. A state tax return in one state jurisdiction is currently under review. The Company has evaluated the preliminary findings in this jurisdiction and believes it is more likely than not that the ultimate resolution of these matters will not have a material impact on its financial statements. The Company currently believes that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. Interest and penalties resulting from audits by tax authorities have been immaterial and are included in the provision for income taxes in the consolidated statements of operations.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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