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Income Taxes | 8 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes |
15. | INCOME TAXES
The provision (benefit) for income taxes from continuing operations for transition period 2014, fiscal year 2014, fiscal year 2013 and fiscal year 2012 consists of the following:
|  | Eight Months Ended December 31, 2014 |  |  | Fiscal Year Ended April 30, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |
Federal – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 2,231 |  |  | $ | — |  |  | $ | — |  |  | $ | 121 |
Current benefit of loss carryforwards |  |  | (2,231 | ) |  |  | — |  |  |  | — |  |  |  | — |
Deferred |  |  | 463 |  |  |  | 1,262 |  |  |  | (2,827 | ) |  |  | 1,468 |
|  |  | 463 |  |  |  | 1,262 |  |  |  | (2,827 | ) |  |  | 1,589 |
State – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 500 |  |  |  | 219 |  |  |  | 1,040 |  |  |  | (352 | )
Current benefit of loss carryforwards |  |  | (402 | ) |  |  | — |  |  |  | (22 | ) |  |  | — |
Deferred |  |  | 142 |  |  |  | 318 |  |  |  | (717 | ) |  |  | 372 |
Deferred benefit of loss carryforwards |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (16 | )
|  |  | 240 |  |  |  | 537 |  |  |  | 301 |  |  |  | 4 |
|  | $ | 703 |  |  | $ | 1,799 |  |  | $ | (2,526 | ) |  | $ | 1,593 |
Included in the current state tax provision for year ending April 30, 2013 is an $800 settlement with New York State, comprised of $430 of tax and $370 of interest. New York State had alleged that we were not permitted to file a single combined corporation franchise tax return with our subsidiaries. On January 18, 2011, the State had assessed a liability of $3,852, comprising $2,220 tax and $1,632 penalties and interest, for tax years ending April 30, 2004 through April 30, 2006. We had filed Petitions of Redetermination with the State of New York Division of Tax Appeals and had been scheduled for an administrative hearing on April 18-19, 2013. Tax years ending April 30, 2007 through April 30, 2009 were also being audited for the same tax matter. The settlement, which represented less than 8% of the potential cumulative liability for the years settled, was a monetary settlement without any change to our filing combined returns in New York and it closed years ending April 30, 2004 through April 30, 2010. An audit has been initiated for tax years 2011 through 2013. We had not provided a reserve for the previously settled audit, since we believed that it was more likely than not that we would be successful in contesting the proposed deficiency. We continue to believe that our position related to the 2011-2014 years is appropriate and no reserve has been established for these years. The differences in the provision (benefit) for income taxes and the amounts determined by applying the Federal statutory rate to income before provision (benefit) for income taxes for transition period 2014, fiscal year 2014, fiscal year 2013 and fiscal year 2012 are as follows:
|  | Eight Months Ended December 31, 2014 |  |  | Fiscal Year Ended April 30, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |
Federal statutory rate |  |  | 35 | % |  |  | 35 | % |  |  | 35 | % |  |  | 35 | %
Tax at statutory rate |  | $ | (1,787 | ) |  | $ | (8,929 | ) |  | $ | (18,378 | ) |  | $ | (26,638 | )
State income taxes, net of federal benefit |  |  | (59 | ) |  |  | (1,271 | ) |  |  | (1,076 | ) |  |  | (3,050 | )
Other increase (decrease) in valuation allowance |  |  | 2,532 |  |  |  | 13,605 |  |  |  | 22,510 |  |  |  | 27,247 |
Decrease in valuation allowance due to BBI acquisition |  |  | — |  |  |  | — |  |  |  | (5,084 | ) |  |  | — |
Non-deductible GreenFiber goodwill impairment and equity income in subsidiaries |  |  | (73 | ) |  |  | 1,548 |  |  |  | 180 |  |  |  | 1,182 |
Tax over book basis in GreenFiber on sale |  |  | — |  |  |  | (2,570 | ) |  |  | — |  |  |  | — |
Non-deductible impairment of investment in GreenFiber |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,738 |
Non-deductible expenses |  |  | 505 |  |  |  | 505 |  |  |  | 494 |  |  |  | 823 |
Tax credits |  |  | (380 | ) |  |  | (598 | ) |  |  | (660 | ) |  |  | (650 | )
Non-deductible stock option charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73 |
Other, net |  |  | (35 | ) |  |  | (491 | ) |  |  | (512 | ) |  |  | (1,132 | )
|  | $ | 703 |  |  | $ | 1,799 |  |  | $ | (2,526 | ) |  | $ | 1,593 |
Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. Deferred tax assets and liabilities consist of the following as of December 31, 2014, April 30, 2014 and April 30, 2013:
|  | December 31, 2014 |  |  | April 30, |
|  |  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 40,357 |  |  | $ | 36,594 |  |  | $ | 34,217 |
Book over tax depreciation of property and equipment |  |  | 31,535 |  |  |  | 28,868 |  |  |  | 19,881 |
Accrued expenses and reserves |  |  | 28,929 |  |  |  | 30,690 |  |  |  | 29,884 |
Alternative minimum tax credit carryforwards |  |  | 3,457 |  |  |  | 3,330 |  |  |  | 3,330 |
General business tax credit carryforwards |  |  | 2,921 |  |  |  | 2,666 |  |  |  | 2,095 |
Stock awards |  |  | 1,082 |  |  |  | 1,315 |  |  |  | 1,177 |
Unrealized loss on hedges and swaps |  |  | 672 |  |  |  | 1,115 |  |  |  | 1,852 |
Capital loss carryforwards |  |  | — |  |  |  | 2,510 |  |  |  | — |
Other |  |  | 2,106 |  |  |  | 1,496 |  |  |  | 964 |
Total deferred tax assets |  |  | 111,059 |  |  |  | 108,584 |  |  |  | 93,400 |
Less: valuation allowance |  |  | (87,121 | ) |  |  | (84,540 | ) |  |  | (70,352 | )
Total deferred tax assets after valuation allowance |  |  | 23,938 |  |  |  | 24,044 |  |  |  | 23,048 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of intangibles |  |  | (28,659 | ) |  |  | (28,210 | ) |  |  | (25,973 | )
Other |  |  | (264 | ) |  |  | (286 | ) |  |  | (143 | )
Total deferred tax liabilities |  |  | (28,923 | ) |  |  | (28,496 | ) |  |  | (26,116 | )
Net deferred tax liability |  | $ | (4,985 | ) |  | $ | (4,452 | ) |  | $ | (3,068 | )
As of December 31, 2014 we have, for federal income tax purposes, net operating loss carryforwards of approximately $83,132 that expire in the fiscal years ending December 31, 2024 through 2034 and state net operating loss carryforwards of approximately $100,363 that expire in the fiscal years ending December 31, 2015 through 2034. The net operating loss carryforwards include approximately $383 for which a benefit will be recorded in additional paid-in capital when realized. In addition, we have $3,457 minimum tax credit carryforwards available that are not subject to a time limitation and $2,921 general business credit carryforwards which expire in the fiscal years ending December 31, 2023 through 2034. Sections 382 and 383 of the Internal Revenue Code can limit the amount of net operating loss and credit carryforwards which may be used in a tax year in the event of certain stock ownership changes. We are not currently subject to these limitations but could become subject to them if there were significant changes in the ownership of our stock. In assessing the realizability of carryforwards and other deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. For transition period 2014, the net increase in the valuation allowance was $2,581. For fiscal year 2014, the net increase in the valuation allowance was $14,188. For fiscal year 2013, the valuation allowance decreased by $5,084 due to the recognition of additional reversing temporary differences from the deferred tax liability recorded through goodwill related to the BBI acquisition. The $5,084 deferred tax liability related to the BBI acquisition resulted from temporary differences related to the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. In determining the need for a valuation allowance, we have assessed the available means of recovering deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies, and available sources of future taxable income. We have also considered the ability to implement certain strategies, such as a potential sale of assets that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. We believe we are able to support the deferred tax assets recognized as of the end of the year based on all of the available evidence. The net deferred tax liability as of December 31, 2014 includes deferred tax liabilities related to amortizable goodwill, which are anticipated to reverse in an indefinite future period and which are not currently available as a source of taxable income. The provisions of FASB ASC 740-10-25-5 prescribe the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Additionally, FASB ASC 740-10-25-5 provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under FASB ASC 740-10-25-5, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for transition period 2014, fiscal year 2014 and fiscal year 2013 is as follows:
|  | Eight Months Ended December 31, 2014 |  |  | Fiscal Year Ended April 30, |
|  |  | 2014 |  |  | 2013 |
Unrecognized tax benefits at beginning of period |  | $ | 3,061 |  |  | $ | 3,879 |  |  | $ | 4,447 |
Gross increases for tax positions of prior years |  |  | 14 |  |  |  | 22 |  |  |  | 543 |
Gross decreases for tax positions of prior years |  |  | (1 | ) |  |  | (229 | ) |  |  | (26 | )
Reductions resulting from lapse of statute of limitations |  |  | (1 | ) |  |  | (611 | ) |  |  | (655 | )
Settlements |  |  | — |  |  |  | — |  |  |  | (430 | )
Unrecognized tax benefits at end of period |  | $ | 3,073 |  |  | $ | 3,061 |  |  | $ | 3,879 |
The gross increases for tax positions of prior years for fiscal year 2013 includes $430 tax from the settlement with New York State, which is offset by the ($430) settlements for fiscal year 2013. Included in the balances at December 31, 2014, April 30, 2014 and April 30, 2013 are $0 of unrecognized tax benefits (net of the federal benefit on state issues) that, if recognized, would favorably affect the effective income tax rate in future periods. We anticipate an increase of $178 to unrecognized tax benefits within the next 12 months due to the expiration of the applicable statute of limitations. Our continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. Related to uncertain tax positions, we have accrued interest of $143 and penalties of $8 during transition period 2014, including $26 accrued in income tax expense during transition period 2014. We accrued interest of $116 and penalties of $8 during fiscal year 2014, including $40 accrued in income tax expense during fiscal year 2014. We accrued interest of $76 and penalties of $9 related to uncertain tax positions during fiscal year 2013, including $41 accrued in income tax expense during fiscal year 2013. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. We are subject to U.S. federal income tax, as well as income tax of multiple state jurisdictions. Due to Federal and state net operating loss carryforwards, income tax returns from fiscal years 1998 through transition period 2014 remain open for examination, with limited exceptions.

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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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