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INCOME TAXES | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income Tax Provision The components of the income tax benefit are as follows (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Current income tax benefit: |  |  |  |  |
Federal | $ | (371 | ) |  | $ | (425 | ) |  | $ | (1,358 | )
State | (219 | ) |  | (92 | ) |  | (33 | )
Current income tax benefit | (590 | ) |  | (517 | ) |  | (1,391 | )
Deferred income tax provision (benefit): |  |  |  |  |
Federal | 63 |  |  | 63 |  |  | 147 |
State | 43 |  |  | 1 |  |  | (239 | )
Deferred income tax provision (benefit) | 106 |  |  | 64 |  |  | (92 | )
Income tax benefit | $ | (484 | ) |  | $ | (453 | ) |  | $ | (1,483 | )
A reconciliation of the income tax benefit to the amounts computed by applying the statutory federal income tax rate to loss from continuing operations before income taxes is shown as follows (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Income tax benefit at the federal statutory rate of 35% | $ | (340 | ) |  | $ | (394 | ) |  | $ | (1,306 | )
State income taxes, net of effect of federal tax benefit | (143 | ) |  | (60 | ) |  | (177 | )
Other, net | (1 | ) |  | 1 |  |  | — |
Income tax benefit | $ | (484 | ) |  | $ | (453 | ) |  | $ | (1,483 | )
Deferred Income Taxes The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):
| December 31,
| 2014 |  | 2013
Deferred tax assets: |  |  |
Provision for accrued expenses | $ | 7,265 |  |  | $ | 13,009 |
Net operating loss carryforwards (a) | 23,370 |  |  | 26,365 |
Non-cash compensation expense | 3,010 |  |  | 2,753 |
Goodwill, intangible and other assets | 567 |  |  | 1,874 |
Other | 1,296 |  |  | 1,125 |
Total gross deferred tax assets | 35,508 |  |  | 45,126 |
Less: valuation allowance (b) | (40,121 | ) |  | (49,674 | )
Total deferred tax assets, net of the valuation allowance | (4,613 | ) |  | (4,548 | )
Deferred tax liabilities: |  |  |
Other | (237 | ) |  | (194 | )
Total gross deferred tax liabilities | (237 | ) |  | (194 | )
Net deferred taxes | $ | (4,850 | ) |  | $ | (4,742 | )
(a) | At December 31, 2014 and 2013, the Company had pre-tax consolidated federal NOLs of $35.6 million and $30.1 million, respectively. The federal NOLs will expire between 2031 and 2034. In addition, the Company has separate state NOLs of approximately $315.8 million at December 31, 2014 that will expire at various times between 2015 and 2034.
(b) | The valuation allowance is related to items for which it is "more likely than not" that the tax benefit will not be realized.
During the quarter ended December 31, 2014, the Company identified an error in the calculation of its previously disclosed deferred tax asset for net operating loss carryforwards. The error related primarily to the calculation of the Federal benefit of the state operating loss carryforwards. The Company has determined that the error is not material to prior periods. The Company has corrected this error as an out-of-period adjustment in 2014, resulting in a $5.8 million decrease to the deferred tax asset for net operating loss carryforwards with a corresponding decrease in the related valuation allowance, resulting in no net change to net deferred taxes in the table above. There was no impact to the accompanying consolidated statements of operations and comprehensive income, consolidated balance sheets or the consolidated statements of cash flows. Deferred income taxes are presented in the accompanying consolidated balance sheets as follows (in thousands):
| December 31,
| 2014 |  | 2013
Deferred tax assets | $ | — |  |  | $ | 107 |
Deferred tax liabilities | (4,850 | ) |  | (4,849 | )
Net deferred taxes | $ | (4,850 | ) |  | $ | (4,742 | )
Valuation Allowance The Company had a valuation allowance recorded at December 31, 2014 and 2013 related to the portion of net operating loss carryforwards and other deferred tax assets for which it is "more likely than not" that the tax benefit will not be realized. A reconciliation of the beginning and ending balances of the deferred tax valuation allowance is as follows (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Balance, beginning of the period | $ | 49,674 |  |  | $ | 54,961 |  |  | $ | 68,138 |
Charges to earnings (a) | (3,707 | ) |  | (5,287 | ) |  | (13,176 | )
Out of period adjustment (b) | (5,846 | ) |  | — |  |  | — |
Balance, end of the period | $ | 40,121 |  |  | $ | 49,674 |  |  | $ | 54,961 |
(a) | Amount is primarily related to the Company's net operating loss carryforwards and other deferred tax assets, including accrued expenses and goodwill, which impacted the income tax provision.
(b) | Out of period adjustment in the valuation allowance is offset by an out of period adjustment to the deferred tax assets, as noted above, thus adjustment is limited to disclosure.
Unrecognized Tax Benefits A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):
| Year Ended December 31,
| 2014 |  | 2013
Balance, beginning of the period | $ | 36 |  |  | $ | — |
Additions based on tax positions of prior years | — |  |  | 36 |
Lapse of statute of limitations | (13 | ) |  | — |
Balance, end of the period | $ | 23 |  |  | $ | 36 |
Interest and, if applicable, penalties are recognized related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits included in income tax expense for each of the years ended December 31, 2014, 2013 and 2012 are immaterial. There are no significant accruals for interest and penalties at December 31, 2014 and 2013. As of December 31, 2014 and 2013, the accrual for unrecognized tax benefits, including interest, was $25,000 and $40,000, respectively, all of which would benefit the effective tax rate if recognized. Tax Audits LendingTree is subject to audits by federal, state and local authorities in the area of income tax. These audits include questioning the timing and the amount of deductions and the allocation of income among various tax jurisdictions. Income taxes payable include amounts considered sufficient to pay assessments that may result from examination of prior year returns; however, any amounts paid upon resolution of issues raised may differ from the amount provided. Differences between the reserves for tax contingencies and the amounts owed by the Company are recorded in the period they become known. As of December 31, 2014, the Company is subject to a federal income tax examination for the tax years 2011 through 2013. In addition, the Company is subject to state and local tax examinations for the tax years 2011 through 2013. The Company was indemnified by its previous owner for any federal and/or combined state income tax liabilities resulting from years prior to the spin-off in 2008. The Joint Committee of Taxation has completed its review of IAC's tax returns and approved the audit settlement previously agreed to with the Internal Revenue Services for the years ended December 31, 2001 through 2008. The statute of limitations for the years 2001 through 2009 expired on July 1, 2014. Various state and local jurisdictions are open to examination, the most significant of which is New York, for various tax years beginning with 2006.

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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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