XML 83 R15.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes The components of the provision for income taxes are as follows:
|  | Years Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
($ in thousands) |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,395 |  |  | $ | — |  |  | $ | — |
State |  |  | 1,787 |  |  |  | 341 |  |  |  | 49 |
Total current tax expense |  |  | 12,182 |  |  |  | 341 |  |  |  | 49 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 29,933 |  |  |  | 19,707 |  |  |  | (104,227 | )
State |  |  | 2,663 |  |  |  | 6,982 |  |  |  | (28,250 | )
Total deferred tax expense (benefit) |  |  | 32,596 |  |  |  | 26,689 |  |  |  | (132,477 | )
Total expense (benefit) for income taxes |  | $ | 44,778 |  |  | $ | 27,030 |  |  | $ | (132,428 | )
The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated:
|  | Years Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax at statutory rate |  | $ | 41,968 |  |  |  | 35 | % |  | $ | 22,645 |  |  |  | 35 | % |  | $ | 4,547 |  |  |  | 35 | %
State taxes, net of federal benefit |  |  | 2,893 |  |  |  | 2 |  |  |  | 4,793 |  |  |  | 7 |  |  |  | 6,222 |  |  |  | 48 |
Affiliated stock loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,283 |  |  |  | 25 |
Contingency reserve |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 27,911 |  |  |  | 215 |
Change in valuation allowance |  |  | (264 | ) |  |  | — |  |  |  | (242 | ) |  |  | — |  |  |  | (174,527 | ) |  |  | (1,343 | )
Other, net |  |  | 181 |  |  |  | — |  |  |  | (166 | ) |  |  | — |  |  |  | 136 |  |  |  | 1 |
Income tax expense (benefit) |  | $ | 44,778 |  |  |  | 37 | % |  | $ | 27,030 |  |  |  | 42 | % |  | $ | (132,428 | ) |  |  | (1,019 | )%
Deferred taxes resulted from temporary differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences are as follows:
|  | December 31, |
|  | 2013 |  |  | 2012 |
($ in thousands) |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Intangible assets |  | $ | 43,827 |  |  | $ | 51,494 |
Net operating losses |  |  | 23,705 |  |  |  | 49,001 |
Capital loss carryforward |  |  | — |  |  |  | 1,122 |
Compensation accruals |  |  | 6,280 |  |  |  | 4,794 |
Investments |  |  | 5,111 |  |  |  | 5,044 |
Other |  |  | 1,581 |  |  |  | 83 |
Gross deferred tax assets |  |  | 80,504 |  |  |  | 111,538 |
Valuation allowance |  |  | (35 | ) |  |  | (1,611 | )
Gross deferred tax assets after valuation allowance |  |  | 80,469 |  |  |  | 109,927 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  |  | (13,078 | ) |  |  | (10,884 | )
Unrealized gains |  |  | (2,357 | ) |  |  | (1,214 | )
Other investments |  |  | (534 | ) |  |  | (906 | )
Gross deferred tax liabilities |  |  | (15,969 | ) |  |  | (13,004 | )
Deferred tax assets (liability), net |  | $ | 64,500 |  |  | $ | 96,923 |
At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of all its deferred tax assets. The Company maintained a valuation allowance in the amount of $0.0 million, $1.6 million and $3.3 million at December 31, 2013, 2012 and 2011, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets. As of December 31, 2013, the Company had $45.2 million of net operating loss carryovers for federal income tax purposes. The related federal net operating loss carryovers are scheduled to begin to expire in the year 2029. The federal capital loss carryovers were fully utilized in 2013. As of December 31, 2013, the Company had state net operating loss carryforwards, varying by subsidiary and jurisdiction, represented by a $7.9 million deferred tax asset. The state net operating loss carryovers are scheduled to begin to expire in 2015. All state capital loss carryovers were fully utilized in 2013. Internal Revenue Code Section 382 limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation’s stock involving a 50 percentage point increase in ownership by 5% or larger stockholders. During the year ended December 31, 2009, due to changes in the Company’s stockholder base, the Company incurred an ownership change as defined in Section 382. At December 31, 2013, the Company has approximately $70.6 million in pre-change net operating loss carryovers and built-in losses that are reflected within the Company’s deferred tax assets noted above and are subject to an annual limitation of $4.2 million plus any cumulative unused 382 limitation from post-change tax years. As a result of realization requirements of ASC 718, Compensation-Stock Compensation, as of December 31, 2013, the table of deferred taxes does not include $19.6 million of future tax benefits related to cumulative windfall deductions on certain stock-based incentive plans. Under the Company’s accounting policy, these tax benefits are deemed to be utilized for financial statement purposes after all available net operating loss carryovers have been exhausted and they serve to reduce income taxes payable. When recognized the benefit is recorded as an increase to Shareholder’s Equity. Activity in unrecognized tax benefits is as follows:
|  | Years Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
($ in thousands) |  |  |  |  |  |  |  |  |
Balance, beginning of year |  | $ | 33,948 |  |  | $ | 34,139 |  |  | $ | — |
Decrease related to tax positions taken in prior years |  |  | (1,346 | ) |  |  | (191 | ) |  |  | — |
Increase related to positions taken in the current year |  |  | — |  |  |  | — |  |  |  | 34,139 |
Balance, end of year |  | $ | 32,602 |  |  | $ | 33,948 |  |  | $ | 34,139 |
As of December 31, 2013 the Company has unrecognized tax benefits primarily related to a loss resulting from the dissolution of a subsidiary. Included in the balance of unrecognized tax benefits are $31.0 million of tax benefits that, if recognized, would impact the effective tax rate. The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. The Company recorded no interest or penalties related to uncertain tax positions at December 31, 2013, 2012 and 2011. Based upon the timing and status of its current examinations by taxing authorities, it is reasonably possible that the Company’s unrecognized tax benefits may increase or decrease in 2014, however, the Company cannot estimate the range of such possible changes. In 2013, the Internal Revenue Service (“IRS”) commenced an examination of the Company’s 2011 federal corporate income tax return. At December 31, 2013, the examination is in the preliminary stages. Based upon available information, the Company does not believe that the audit will result in any adjustment that would result in a material change in the Company’s financial position. The earliest federal tax year that remains open for examination is 2008 since unutilized net operating loss carryovers from 2008 could be denied when claimed in future years. The earliest open years in the Company’s major state tax jurisdictions are 1998 and 2005 for Connecticut and New York, respectively.

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