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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company’s effective tax rate for the three and nine months ended September 30, 2015 was 43.0% and 28.7%, respectively. The Company’s effective tax rate for the three and nine months ended September 30, 2014 was 38.6% and 37.9%, respectively. While the 2014 rates were consistent with the statutory tax rate applicable to the U.S. and the blended state rate for the states in which the Company conducts business, the effective tax rate was higher for the three months ended September 30, 2015 due to lower pre-tax income and the impact of permanent differences, while the effective tax rate was lower for the nine months ended September 30, 2015 due to the Company’s pre-tax loss and the impact of permanent differences. The permanent differences were primarily between compensation amounts expensed for book purposes versus the amounts deductible for income tax purposes related to stock-based compensation vestings during the three and nine months ended September 30, 2015 at stock prices lower than the grant date values. The impact of these permanent differences was partially offset by a reduction in the North Dakota statutory tax rate in the second quarter of 2015.
The Company had deferred tax assets for its federal and state tax loss carryforwards at September 30, 2015 recorded in deferred income taxes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of September 30, 2015, management determined that a valuation allowance was not required for the tax loss carryforwards as they are expected to be fully utilized before expiration. As of September 30, 2015, the Company did not have any uncertain tax positions requiring adjustments to its tax liability.