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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2016, 2015 and 2014 as determined in accordance with ASC 740, Income Taxes (“ASC 740”), are as follows:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 14,515 |  |  | $ | 1,598 |  |  | $ | — |
State and local |  |  | 1,425 |  |  |  | 2,431 |  |  |  | 94 |
Foreign |  |  | 567 |  |  |  | 210 |  |  |  | — |
|  |  | 16,507 |  |  |  | 4,239 |  |  |  | 94 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 10,629 |  |  |  | 46,784 |  |  |  | 10,739 |
State and local |  |  | 2,296 |  |  |  | 6,233 |  |  |  | 1,664 |
Foreign |  |  | (25 | ) |  |  | (123 | ) |  |  | — |
|  |  | 12,900 |  |  |  | 52,894 |  |  |  | 12,403 |
Income tax expense from operations |  | $ | 29,407 |  |  | $ | 57,133 |  |  | $ | 12,497 |
A reconciliation of the statutory federal income tax rate of 35% and the Company’s effective rate is as follows:
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal statutory rate |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Change in valuation allowance |  |  | 8.16 | % |  |  | 0.90 | % |  |  | (27.74 | %)
State income tax rate, net of federal benefit |  |  | 4.17 | % |  |  | 4.11 | % |  |  | 1.55 | %
Acquisition expense |  |  | 4.06 | % |  |  | 0.61 | % |  |  | — |
Goodwill impairment |  |  | 1.16 | % |  |  | — |  |  |  | — |
Foreign tax differential |  |  | 0.68 | % |  |  | 0.82 | % |  |  | 0.82 | %
Change in effective state rate |  |  | 0.22 | % |  |  | (0.06 | %) |  |  | 6.86 | %
Other differences, net |  |  | (0.52 | %) |  |  | 0.27 | % |  |  | 0.50 | %
Effective rate |  |  | 52.93 | % |  |  | 41.65 | % |  |  | 16.99 | %
Net Operating Losses – U.S. The Company’s pre-tax federal net operating losses for tax purposes (“NOLs”) at December 31, 2016 was $4,195 which expire in 2024. The net operating loss carryforwards have been reduced by the impact of annual limitations described in the Internal Revenue Code Section 382 that arose as a result of an ownership change. The Company no longer has any NOLs related to vested stock-based compensation awards that were previously unrecognized under GAAP. Such NOLs were utilized during the year ended December 31, 2016 to reduce the Company’s tax liability with a corresponding credit to additional paid-in capital. Net Operating Losses – International The Company’s European and Canadian subsidiaries generated NOLs outside the U.S. The following table summarizes the activity for these NOLs for the years ended December 31, 2016, 2015 and 2014, respectively.
|  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Balance – Beginning of year (pre-tax) |  | $ | 10,746 |  |  | $ | 4,061 |  |  | $ | — |
Foreign subsidiaries tax losses |  |  | 12,960 |  |  |  | 6,685 |  |  |  | 4,061 |
Balance – End of year (pre-tax) |  | $ | 23,706 |  |  | $ | 10,746 |  |  | $ | 4,061 |
Tax Rate – Blended |  |  | 19.2 | % |  |  | 19.1 | % |  |  | 20.1 | %
Balance – End of year (tax effected) |  | $ | 4,551 |  |  | $ | 2,051 |  |  | $ | 816 |
At December 31, 2016, 2015, and 2014, the Company established a full valuation allowance related to these NOLs as it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred Tax Assets A summary of the components of the Company’s deferred tax assets at December 31, 2016 and 2015 are as follows:
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Stock-based compensation |  | $ | 5,382 |  |  | $ | 4,868 |
Accrued expenses |  |  | 4,552 |  |  |  | 10,197 |
NOLs – Foreign |  |  | 4,551 |  |  |  | 2,051 |
Deferred rent liability |  |  | 2,024 |  |  |  | 2,116 |
NOLs – U.S. |  |  | 1,611 |  |  |  | 1,828 |
Unrealized losses |  |  | 101 |  |  |  | 5 |
Other |  |  | 227 |  |  |  | 82 |
Deferred tax assets |  |  | 18,448 |  |  |  | 21,147 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Fixed assets |  |  | 2,405 |  |  |  | 2,272 |
Incentive compensation |  |  | 1,365 |  |  |  | 2,753 |
Goodwill and intangible assets |  |  | 301 |  |  |  | — |
Deferred tax liabilities |  |  | 4,071 |  |  |  | 5,025 |
Total deferred tax assets less deferred tax liabilities |  |  | 14,377 |  |  |  | 16,122 |
Less: valuation allowance |  |  | (4,551 | ) |  |  | (2,051 | )
Deferred tax assets, net |  | $ | 9,826 |  |  | $ | 14,071 |
Uncertain tax positions The Company determined that it has no unrecognized tax benefits as of December 31, 2016 and 2015 as defined within ASC 740-10. Income Tax Examinations The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions. The Company’s 2013 federal income tax return is currently under audit. Tax returns filed with each jurisdiction generally remain open to examination under the normal three-year statute of limitation. As of December 31, 2016, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for years before 2013. Undistributed Earnings of Foreign Subsidiaries The Company recognizes deferred tax liabilities associated with outside basis differences on investments in foreign subsidiaries unless the difference is considered essentially permanent in duration. As of December 31, 2016, all of the Company’s undistributed earnings and profits, which are not currently significant, are considered essentially permanent in duration.

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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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