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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12 – Income Taxes A summary of income tax expenses (benefit) follows:
|  | Year Ended |
|  | December 31, 2016 |  |  |  | December 31, 2015 |  |  |  | December 28, 2014 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  |  | $ | 247 |  |  |  | $ | — |
State |  |  | — |  |  |  |  | — |  |  |  |  | — |
|  |  | — |  |  |  |  | 247 |  |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (4,091 | ) |  |  | $ | (8,939 | ) |  |  | $ | — |
State |  |  | (234 | ) |  |  |  | (1,277 | ) |  |  |  | — |
|  |  | (4,325 | ) |  |  |  | (10,216 | ) |  |  |  | — |
Income tax benefit |  | $ | (4,325 | ) |  |  | $ | (9,969 | ) |  |  | $ | — |
Reconciliation of the statutory federal income tax rate to the Company’s actual rate based on income (loss) before income tax benefit is summarized as follows:
|  | Year Ended |  |
|  | December 31, 2016 |  |  |  | December 31, 2015 |  |  |  | December 28, 2014 |  |
Statutory federal tax rate |  |  | 35.0 |  | % |  |  | 35.0 |  | % |  |  | 35.0 |  | %
State income taxes, net of federal income taxes |  |  | 2.0 |  |  |  |  | 6.9 |  |  |  |  | — |  |
State tax credit |  |  | (45.9 | ) |  |  |  | — |  |  |  |  | — |  |
State rate adjustment |  |  | 2.1 |  |  |  |  | — |  |  |  |  | — |  |
Permanent tax differences – Merger expenses |  |  | — |  |  |  |  | 11.4 |  |  |  |  | (0.1 | ) |
Permanent tax differences – Investment in unconsolidated investee |  |  | — |  |  |  |  | 9.8 |  |  |  |  | — |  |
Permanent tax differences – Other |  |  | 2.4 |  |  |  |  | 1.4 |  |  |  |  | — |  |
Purchase price allocation adjustment – Merger |  |  | 3.7 |  |  |  |  | — |  |  |  |  | — |  |
Change in valuation allowance |  |  | (34.8 | ) |  |  |  | (131.1 | ) |  |  |  | (34.9 | ) |
FICA credit generated |  |  | (4.7 | ) |  |  |  | — |  |  |  |  | — |  |
Other, net |  |  | 4.1 |  |  |  |  | (1.8 | ) |  |  |  | — |  |
|  |  | (36.1 | ) | % |  |  | (68.4 | ) | % |  |  | — |  | %
The Company’s current and non-current deferred tax assets and (liabilities) are as follows:
|  | December 31, 2016 |  |  | December 31, 2015 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |
Accruals and reserves |  | $ | 1,144 |  |  | $ | 1,326 |
Transaction costs |  |  | — |  |  |  | 81 |
Prepaid services |  |  | (1,034 | ) |  |  | (897 | )
Net operating loss carryforwards |  |  | — |  |  |  | 9,917 |
|  | $ | 110 |  |  | $ | 10,427 |
Non-current: |  |  |  |  |  |  |  |
Development costs |  | $ | 5 |  |  | $ | 2,885 |
Share-based compensation expense |  |  | 2,366 |  |  |  | 1,550 |
Amortization of intangible assets |  |  | (20,024 | ) |  |  | (19,834 | )
Depreciation of fixed assets |  |  | (925 | ) |  |  | — |
Alternative minimum tax credit carryforward |  |  | 1,468 |  |  |  | 1,420 |
General business credit carryforward |  |  | 481 |  |  |  | — |
State tax credits |  |  | 5,500 |  |  |  | — |
Net operating loss carryforwards |  |  | 28,025 |  |  |  | 21,696 |
Other |  |  | 1,065 |  |  |  | 2,978 |
|  |  | 17,961 |  |  |  | 10,695 |
Valuation allowances |  |  | (18,109 | ) |  |  | (25,593 | )
|  | $ | (38 | ) |  | $ | (4,471 | )
Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. The Company's financial results include the reversal of a portion of the valuation allowance recorded against the deferred tax assets of the Company. This reversal resulted in the recognition of a $4.3 million income tax benefit. The Company has performed a continuing evaluation of its deferred tax asset valuation allowance on a quarterly basis. The Company has now concluded that, as of December 31, 2016, it is more likely than not that the Company will generate sufficient taxable income within the applicable net operating loss carry-forward periods to realize a portion of its deferred tax assets. This conclusion, and the resulting partial reversal of the deferred tax asset valuation allowance, is based upon consideration of several factors, including the Company's completion of five consecutive quarters of profitability, its demonstrated ability to meet or exceed budgets, and its forecast of future profitability. As of December 31, 2016, the Company had approximately $75.7 million of federal net operating loss carryforwards, which will begin to expire in 2032. Additionally, the Company had deferred tax assets of approximately $1.5 million related to Alternative Minimum Tax credits and approximately $0.5 million related to general business credits. The general business credit carryforward expires in 2036, while the Alternative Minimum Tax credits can be carried forward indefinitely. During the second quarter of 2015, the Company was notified by the state of California that its audit of the Company for the 2010 tax year had been completed and resulted in no adjustments. During the fourth quarter of 2016, the Company completed an IRS audit for the 2009 through 2013 tax years. The impact of the audit was not material and has been reflected in the financial statements. The 2014 and 2015 tax years are still subject to examination.

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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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