XML 58 R24.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | 16. Income Taxes The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2017, 2016 and 2015 as determined in accordance with ASC 740, Income Taxes (“ASC 740”), are as follows:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 19,007 |  |  | $ | 14,515 |  |  | $ | 1,598 |
State and local |  |  | 2,708 |  |  |  | 1,425 |  |  |  | 2,431 |
Foreign |  |  | 440 |  |  |  | 567 |  |  |  | 210 |
|  | $ | 22,155 |  |  | $ | 16,507 |  |  | $ | 4,239 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,947 |  |  | $ | 10,629 |  |  | $ | 46,784 |
State and local |  |  | 1,105 |  |  |  | 2,296 |  |  |  | 6,233 |
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Foreign |  |  | (214 | ) |  |  | (25 | ) |  |  | (123 | )
|  | $ | 8,838 |  |  | $ | 12,900 |  |  | $ | 52,894 |
Income tax expense from operations |  | $ | 30,993 |  |  | $ | 29,407 |  |  | $ | 57,133 |
A reconciliation of the statutory federal income tax rate and the Company’s effective rate is as follows:
|  | December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Change in valuation allowance—International |  |  | 9.2 | % |  |  | 8.2 | % |  |  | 0.9 | %
Blended state income tax rate, net of federal benefit |  |  | 3.8 | % |  |  | 4.2 | % |  |  | 4.1 | %
Non-deductible transaction costs |  |  | 2.7 | % |  |  | — |  |  |  | — |
Stock-based compensation tax shortfalls |  |  | 1.8 | % |  |  | — |  |  |  | — |
Re-measurement of net deferred tax assets – Rate change |  |  | 0.8 | % |  |  | — |  |  |  | — |
Acquisition expense |  |  | — |  |  |  | 4.1 | % |  |  | 0.6 | %
Goodwill impairment |  |  | — |  |  |  | 1.2 | % |  |  | — |
Other differences, net |  |  | — |  |  |  | 0.2 | % |  |  | 1.0 | %
Effective rate |  |  | 53.3 | % |  |  | 52.9 | % |  |  | 41.6 | %
Net Operating Losses – U.S. The Company’s pre-tax federal net operating losses for tax purposes (“NOLs”) at December 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 $3,841, $4,551 and $2,051 at December 31, 2017, 2016 and 2015, respectively. 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 (“DTAs”) A summary of the components of the Company’s deferred tax assets at December 31, 2017 and 2016 are as follows:
|  | December 31, |
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |
NOLs – Foreign |  | $ | 3,841 |  |  | $ | 4,551 |
Stock-based compensation |  |  | 1,474 |  |  |  | 5,382 |
Deferred rent liability |  |  | 1,257 |  |  |  | 2,024 |
NOLs – U.S. |  |  | 909 |  |  |  | 1,611 |
Accrued expenses |  |  | 526 |  |  |  | 4,552 |
Unrealized losses |  |  | 72 |  |  |  | 101 |
Other |  |  | 416 |  |  |  | 227 |
Deferred tax assets |  |  | 8,495 |  |  |  | 18,448 |
Deferred tax liabilities: |  |  |  |  |
Unrealized gains |  |  | 1,718 |  |  |  | — |
Fixed assets |  |  | 1,498 |  |  |  | 2,405 |
Goodwill and intangible assets |  |  | 388 |  |  |  | 301 |
Incentive compensation |  |  | — |  |  |  | 1,365 |
Deferred tax liabilities |  |  | 3,604 |  |  |  | 4,071 |
Total deferred tax assets less deferred tax liabilities |  |  | 4,891 |  |  |  | 14,377 |
Less: valuation allowance |  |  | (3,841 | ) |  |  | (4,551 | )
Deferred tax assets, net |  | $ | 1,050 |  |  | $ | 9,826 |
U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act, or the TCJA, was enacted, which was the most comprehensive tax reform in more than 30 years. The sweeping modifications to the Internal Revenue Code include a significant reduction in the federal income tax rate (from 35% to 21%), change certain tax deductions including a disallowance for all executive compensation paid in excess of $1 million, create a territorial tax system with a one-time transition tax on previously deferred foreign earnings and require minimum taxes to be paid on future foreign earnings. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances (including the effects of the one-time transition tax) to be recognized in the period in which the legislation is enacted. The remeasurement of our net DTAs using a statutory federal and state and local tax rate of approximately 25% resulted in a charge of $489. The one-time transition tax was not material as our international subsidiaries historically have generated losses. The Company’s accounting for the income tax effects of the TCJA is complete based on currently available guidance and interpretations. Uncertain Tax Positions The Company determined that it has no unrecognized tax benefits, or related interest and penalties, as of December 31, 2017 and 2016 as defined within ASC 740. 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 is not currently under audit in any income tax jurisdictions. Tax returns filed with each jurisdiction generally remain open to examination under the normal three-year statute of limitations. As of December 31, 2017, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for years before 2014.

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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration