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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Provision for Income Taxes The components of income before income taxes attributable to our operations are as follows (in thousands):
| Years Ended December 31,
| 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 485 |  |  | 327 |  |  | 231 |
Total current | 485 |  |  | 327 |  |  | 231 |
Deferred |  |  |  |  |
Federal | (23,308 | ) |  | — |  |  | — |
State | (2,030 | ) |  | — |  |  | — |
Total deferred | (25,338 | ) |  | — |  |  | — |
Total income tax (benefit) provision | $ | (24,853 | ) |  | $ | 327 |  |  | $ | 231 |
Deferred Income Taxes The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):
| December 31, 2014 |  | December 31, 2013
Deferred tax assets: |  |  |
Accrued bonuses | $ | 315 |  |  | $ | — |
Accrued severance pay | 11 |  |  | — |
Stock-based compensation | 14 |  |  | — |
Federal net operating loss carryover | 62,575 |  |  | — |
State net operating loss carryover | 1,161 |  |  | — |
Basis in partnerships | 26,123 |  |  | — |
Warranty accrual | 161 |  |  | — |
Historical BioFuel capitalized start-up costs | 24 |  |  | — |
Historical BioFuel - other | 16 |  |  | — |
| 90,400 |  |  | — |
Valuation allowance | (1,161 | ) |  | — |
Deferred tax assets, net | 89,239 |  |  | — |
Deferred tax liabilities: |  |  |  |  |
Prepaid insurance | (11 | ) |  | — |
Noncontrolling interests impact of M-1s | (31 | ) |  | — |
Deferred tax liabilities, net | (42 | ) |  | — |
The Company assesses the recoverability of deferred tax assets and the need for a valuation allowance on an ongoing basis. In making this assessment, management considers all available positive and negative evidence and available income tax planning to determine whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized in future periods. This assessment requires significant judgment and estimates involving current and deferred income taxes, tax attributes relating to the interpretation of various tax laws, historical bases of tax attributes associated with certain assets and limitations surrounding the realization of deferred tax assets. The Company files a federal corporate income tax return. The operations of JBGL subsequent to the Transaction Date will be included in the Company’s federal income tax filing. As of December 31, 2014, the federal net operating loss carryforward was approximately $178.8 million, which will begin to expire beginning with the year ending December 31, 2029. The U.S. federal statute of limitations remains open for our 2011 and subsequent tax years. Due to the carryover of the federal net operating losses for years 2008 and forward, income tax returns going back to the 2008 year are subject to adjustment. The Colorado and Minnesota statute of limitations remains open for our 2010 and subsequent tax years. The Nebraska statute of limitations remains open for our 2011 and subsequent tax years. Additionally, JBGL's partnerships filed returns in Texas and Georgia. The Georgia statute of limitations remains open for the 2011 and subsequent tax years. Any Georgia adjustments relating to returns filed by the partnerships would be borne by the partners. The Texas statute of limitations remains open for the 2010 and subsequent tax years. The Company is not presently under examination by the Internal Revenue Service, nor has it been contacted. The Company has no uncertain income tax positions at December 31, 2014. Effective Tax rate Reconciliation A reconciliation between our effective tax rate on income before income tax (benefit) provision and the U.S. federal statutory rate is as follows (amounts in thousands):
| Years Ended December 31,
| 2014 |  | 2013 |  | 2012
Tax on pre-tax book income (before reduction for noncontrolling interests) | $ | 12,673 |  |  | $ | — |  |  | $ | — |
Pre-Transaction earnings taxed to partners | (10,634 | ) |  | — |  |  | — |
Tax effect of non-controlled earnings post Transaction | (644 | ) |  | — |  |  | — |
Change in partnership tax status | (25,244 | ) |  | — |  |  | — |
Change in partnership tax status - state benefit | (1,320 | ) |  | — |  |  | — |
State tax expense, net | 315 |  |  | 327 |  |  | 231 |
Perm items - other | 1 |  |  | — |  |  | — |
Total tax expense | $ | (24,853 | ) |  | $ | 327 |  |  | $ | 231 |
| (68.6 | )% |  | 0.7 | % |  | 1.1 | %
Net Operating Losses and Valuation Allowances As of December 31, 2014, we have $178.8 million of federal net operating loss carryforwards that will expire beginning with the year ending in December 31, 2029. Our ability to utilize our net operating loss carryforwards depends on the amount of taxable income we generate in future periods. Based on our 2014, 2013 and 2012 taxable income results and projections of taxable income, management expects that the Company will generate sufficient taxable income to utilize substantially all of the federal net operating loss carryforwards before they expire. We also have approximately $21.6 million of state net operating loss carryforwards that have varying dates of expiration. We believe it is more-likely-than-not that the state loss carryforwards will expire prior to their utilization. As a result, a $21.6 million valuation allowance is recorded against the state loss carryforwards in full. The assessment of the need for a valuation allowance considered all available positive and negative information and available tax planning. Prior to the Transaction Date, JBGL was not a taxable entity for U.S. federal income tax purposes. Taxes on its net income were borne by its members through the allocation of taxable income. Upon completion of the reverse recapitalization of Green Brick, JBGL became part of a consolidated taxable entity. The Transaction resulted in the change of JBGL’s tax status that resulted in the recognition of a one-time income tax benefit in the income statement of approximately $26.6 million. BioFuel had approximately $182.3 million of federal net operating loss carryforwards and approximately $21.6 million of state net operating loss carryforwards as of the Transaction Date. The Company re-assessed the need for a valuation allowance as of the Transaction Date and concluded, on a more-likely-than-not basis, that the deferred income tax assets, except for the state loss carryforwards, would be realized, giving consideration to the historical, current year and projected operating results of JBGL. As a result of the re-assessment, the Company recorded $63.9 million of net deferred income tax assets at the Transaction Date, with an offset in additional paid-in-capital. The effect of the re-assessment had no impact on income tax expense. The rollforward of valuation allowances is as follows (amounts in thousands):
| Years Ended December 31,
| 2014 |  | 2013
Valuation allowance at beginning of the year | $ | — |  |  | $ | — |
BioFuel valuation allowance at the Transaction Date | 65,020 |  |  | — |
Release of valuation allowance at Transaction Date | (63,859 | ) |  | — |
Valuation allowance at end of the year | $ | 1,161 |  |  | $ | — |
(1)Amount was released through additional paid-in capital at the Transaction Date.

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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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