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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES A summary of the provision for income taxes from continuing operations is as follows:
| Fiscal Year Ended December 31, |  | Eight Months Ended December 31, 2014 |  | Fiscal Year Ended April 30, 2014
| 2016 |  | 2015 |  |
Federal |  |  |  |  |  |  |
Current | $ | — |  |  | $ | 2,899 |  |  | $ | 2,231 |  |  | $ | — |
Current benefit of loss carryforwards | — |  |  | (2,899 | ) |  | (2,231 | ) |  | — |
Deferred | 458 |  |  | 395 |  |  | 463 |  |  | 1,262 |
| 458 |  |  | 395 |  |  | 463 |  |  | 1,262 |
State |  |  |  |  |  |  |
Current | (90 | ) |  | 1,112 |  |  | 500 |  |  | 219 |
Current benefit of loss carryforwards | — |  |  | (557 | ) |  | (402 | ) |  | — |
Deferred | 126 |  |  | 401 |  |  | 142 |  |  | 318 |
| 36 |  |  | 956 |  |  | 240 |  |  | 537 |
Provision for income taxes | $ | 494 |  |  | $ | 1,351 |  |  | $ | 703 |  |  | $ | 1,799 |
In fiscal year 2016, we elected early adoption of ASU 2016-09 using the prospective transition method related to stock compensation which contains several amendments that simplify the accounting for employee share-based payment transactions. Related to the accounting for income taxes, the new standard eliminates the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. Under the new standard, all excess tax benefits and tax deficiencies are recorded in the income tax provision. We recognized no net tax impact upon adoption due to the valuation allowance position and prior periods have not been adjusted. Included in the current state tax provision for fiscal year 2015 is a $180 settlement with New York State, comprised of $168 of tax and $12 of interest. New York State had alleged that we were not permitted to file a single combined corporation franchise tax return with our subsidiaries. We believe that our position related to the filing of our State of New York tax returns was correct, and, based on the prior settlement related to 2004 to 2010 tax returns and subsequent favorable litigation related to similar issues, we concluded at December 31, 2014 that no reserve would be required for our State of New York filings. During fiscal year 2015, we reached the $180 settlement with the State of New York for the tax years ended April 30, 2011 through April 30, 2013 on a basis similar to the prior settlement to minimize out-of-pocket costs. 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 tax years ending April 30, 2011 through April 30, 2013. Due to a change in law, we have elected to file a single combined corporation franchise tax return with our subsidiaries in New York beginning with 2015. We have not established any reserve under ASC 740 for the tax years ended April 30, 2014 and December 31, 2014, since we believe our position would more likely than not be successful. The differences in the provision for income taxes and the amounts determined by applying the Federal statutory rate to income before provision for income taxes are as follows:
| Fiscal Year Ended December 31, |  | Eight Months Ended December 31, 2014 |  | Fiscal Year Ended April 30, 2014
| 2016 |  | 2015 |  |
Federal statutory rate | 35 | % |  | 35 | % |  | 35 | % |  | 35 | %
Tax at statutory rate | $ | (2,228 | ) |  | $ | (3,650 | ) |  | $ | (1,787 | ) |  | $ | (8,929 | )
State income taxes, net of federal benefit | (265 | ) |  | 198 |  |  | (59 | ) |  | (1,271 | )
Other increase in valuation allowance | 4,370 |  |  | 5,272 |  |  | 2,532 |  |  | 13,605 |
Non-deductible expenses | 100 |  |  | 467 |  |  | 505 |  |  | 505 |
Tax credits | (1,085 | ) |  | (671 | ) |  | (380 | ) |  | (598 | )
Non-deductible equity income in subsidiaries and GreenFiber goodwill impairment | — |  |  | (415 | ) |  | (73 | ) |  | 1,548 |
Tax over book basis in GreenFiber on sale | — |  |  | — |  |  | — |  |  | (2,570 | )
Other, net | (398 | ) |  | 150 |  |  | (35 | ) |  | (491 | )
Provision for income taxes | $ | 494 |  |  | $ | 1,351 |  |  | $ | 703 |  |  | $ | 1,799 |
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. A summary of deferred tax assets and liabilities is as follows:
| December 31,
| 2016 |  | 2015
Deferred tax assets: |  |  |
Book over tax depreciation of property and equipment | $ | 30,012 |  |  | $ | 37,383 |
Net operating loss carryforwards | 46,846 |  |  | 36,187 |
Accrued expenses and reserves | 32,185 |  |  | 31,611 |
Alternative minimum tax credit carryforwards | 3,804 |  |  | 3,766 |
General business tax credit carryforwards | 4,433 |  |  | 3,379 |
Stock awards | 1,720 |  |  | 1,338 |
Other | 2,806 |  |  | 2,778 |
Total deferred tax assets | 121,806 |  |  | 116,442 |
Less: valuation allowance | (97,589 | ) |  | (93,007 | )
Total deferred tax assets after valuation allowance | 24,217 |  |  | 23,435 |
Deferred tax liabilities: |  |  |
Amortization of intangibles | (30,296 | ) |  | (28,935 | )
Other | (99 | ) |  | (95 | )
Total deferred tax liabilities | (30,395 | ) |  | (29,030 | )
Net deferred tax liability | $ | (6,178 | ) |  | $ | (5,595 | )
As of December 31, 2016, we have, for federal income tax purposes, net operating loss carryforwards of approximately $98,735 that expire in the fiscal years ending December 31, 2031 through 2036 and state net operating loss carryforwards of approximately $110,486 that expire in the fiscal years ending December 31, 2017 through 2036. In addition, we have $3,804 minimum tax credit carryforwards available that are not subject to a time limitation and $4,433 general business credit carryforwards which expire in the fiscal years ending December 31, 2023 through 2036. 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. The net increase in the valuation allowance was $4,582 for fiscal year 2016, $5,886 for fiscal year 2015 and $2,581 for transition period 2014. 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, 2016 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 is as follows:
| Fiscal Year Ended December 31,
| 2016 |  | 2015
Unrecognized tax benefits at beginning of period | $ | 3,379 |  |  | $ | 3,073 |
Gross increases for tax positions of prior years | — |  |  | 168 |
Gross decreases for tax positions of prior years | (2 | ) |  | (1 | )
Reductions resulting from lapse of statute of limitations | (270 | ) |  | (409 | )
Gross increases resulting from reversal of benefit from lapse of statute of limitations | — |  |  | 716 |
Settlements | — |  |  | (168 | )
Unrecognized tax benefits at end of period | $ | 3,107 |  |  | $ | 3,379 |
The gross increases for tax positions of prior years for fiscal year 2015 includes $168 tax from the settlement with New York State, which is offset by the ($168) settlements for fiscal year 2015. Included in the balances at December 31, 2016 and December 31, 2015 are $9 and $279, respectively, 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 a $3 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 during fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, we have accrued interest of $5, $92, $143 and $116 and penalties of $4, $8, $8 and $8, respectively. We accrued ($91), ($51), $26 and $40 for interest and penalties in income tax expense related to uncertain tax positions during fiscal year 2016, fiscal year 2015, transition period 2014 and fiscal year 2014, respectively. 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 years ending in 1998 through 2016 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 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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