XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Income Taxes | 3 Months Ended
--- | ---
Mar. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes Effective Income Tax Rate – Three Months Ended March 31, 2017 and March 31, 2016 The Company’s effective income tax rate for the three months ended March 31, 2017 of 53.6% resulted in income tax expense of $7.9 million. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to a valuation allowance on foreign net operating losses, tax shortfalls associated with the vesting of stock-based compensation awards and state and local income taxes. Effective January 1, 2017, US GAAP was amended with the intention to simplify the accounting for stock-based compensation. This includes the requirement to record the tax effects related to stock-based compensation within income tax expense, rather than additional paid-incapital, when applicable. Therefore, tax shortfalls (and tax windfalls) associated with the vesting of stock-based compensation awards are now included within income tax expense. This new guidance resulted in the recognition of $1.0 million of income tax expense associated with tax shortfalls recognized upon vesting of stock-based compensation awards during the quarter. The Company’s effective income tax rate for the three months ended March 31, 2016 of 44.3% resulted in income tax expense of $9,600. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to state and local income taxes, the acquisition payment expense (which is non-deductible) and a valuation allowance on foreign net operating losses. Net Operating Losses – U.S. The Company’s pre-tax federal net operating losses for tax purposes (“NOLs”) at March 31, 2017 was $3,671 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. Net Operating Losses – International The Company’s European and Canadian subsidiaries generated NOLs outside the U.S. These tax effected NOLs were $2.4 million at March 31, 2017. 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 asset at March 31, 2017 is as follows:
|  | March 31, 2017 |  |  | December 31, 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
NOLs – Foreign |  | $ | 2,414 |  |  | $ | 4,551 |
Stock-based compensation |  |  | 2,353 |  |  |  | 5,382 |
Deferred rent liability |  |  | 2,005 |  |  |  | 2,024 |
NOLs – U.S. |  |  | 1,410 |  |  |  | 1,611 |
Accrued expenses |  |  | 1,207 |  |  |  | 4,552 |
Unrealized losses |  |  | 163 |  |  |  | 101 |
Other |  |  | 262 |  |  |  | 227 |
Deferred tax assets |  |  | 9,814 |  |  |  | 18,448 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  | 2,405 |  |  |  | 2,405 |
Incentive compensation |  |  | 1,023 |  |  |  | 1,365 |
Goodwill and intangible assets |  |  | 376 |  |  |  | 301 |
Deferred tax liabilities |  |  | 3,804 |  |  |  | 4,071 |
Total deferred tax assets less deferred tax liabilities |  |  | 6,010 |  |  |  | 14,377 |
Less: valuation allowance |  |  | (2,414 | ) |  |  | (4,551 | )
Deferred tax assets, net |  | $ | 3,596 |  |  | $ | 9,826 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration