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Note 8 - Income Taxes
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
8
.
INCOME
TAXES
 
GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
 
In
December 2017,
The Tax Cuts and Jobs Act of
2017
(TCJA) was signed into law. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from
35%
to
21%,
limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The TCJA also establishes new tax laws that will affect future periods, including, but
not
limited to: (
1
) reducing the U.S. federal corporate tax rate; (
2
) limiting deductible interest expense; (
3
) modifying the tax treatment of like-kind exchanges; (
4
) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (
5
) imposing a new provision designed to tax global intangible low-tax income; (
6
) creating the base erosion anti-abuse tax, a new minimum tax; (
7
) limiting the use of net operating loss carryforwards created in tax years beginning after
December 31, 2017; (
8
) modifying the limitations on the use of foreign tax credits to reduce our U.S. income tax liability; (
9
) permanently eliminating the corporate alternative minimum tax and allowing credits to reduce our U.S. income tax liability; and (
10
) further restricting the deductibility of certain executive compensation and fringe benefits. The Company is in the process of analyzing the final legislation and determining an estimate of the financial impact
 
Reconciliations between the total income tax benefit and the amount computed using the statutory federal rate of
35%
for the years ended
December 31, 2017
and
2016
were as follows:
 
   
2017
    
2016
  
   
(in thousands)
  
Federal income tax expense at statutory rate
   $
3,815
     $
7,635
  
Adjusted for:
                
Valuation allowance
    
(3,814
 )    
(7,603
 )
Permanent differences and other
    
(1
 )    
(32
 )
Income tax benefit - continuing operations
   $
-
     $
-
  
 
Deferred tax assets were comprised of the following temporary differences as of
December
 
31,
2017
and
2016:
 
   
2017
    
2016
  
   
(in thousands) 
  
Net operating loss and tax credit carryforwards
   $
25,745
     $
38,915
  
Joint venture and other investments
    
(22
 )    
18
  
Accrued retirement benefits
    
2,483
      
3,924
  
Property net book value
    
1,716
      
2,801
  
Deferred revenue
    
546
      
953
  
Stock compensation
    
13
      
22
  
Reserves and other
    
(115
 )    
404
  
Total deferred tax assets
    
30,366
      
47,037
  
Valuation allowance
    
(30,366
 )    
(47,037
 )
Net deferred tax assets
   $
-
     $
-
  
 
Valuation allowances have been established to reduce future tax benefits
not
expected to be realized. The change in the
deferred tax asset related to accrued retirement benefits and the valuation allowance includes the pension adjustment included in accumulated other comprehensive loss, which is
not
included in the current provision. The Company had
$83.3
 million in federal net operating loss carry forwards at
December 
31,
2017,
that expire from
2029
through
2034.
The Company had
$97.4
million in state net operating loss carry forwards at
December 31, 2017,
that expire from
2029
through
2034.
In
2017,
the Company fully utilized the special alternative minimum tax net operating loss carryforward from
2008
which allowed for
100%
offset to the alternative minimum taxable income for
2017.
 
In accordance with SAB
118,
during the year ended
December 31, 2017,
we recorded an adjustment of
$12.1
million to the deferred tax assets and valuation allowance as a result of the TCJA’s reduction of the Federal corporate rate from
35%
to
21%.