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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 9. Income Taxes Our provision for income taxes is comprised of the following:
|  | For the Years Ended December 31, |
(in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | (3 | ) |  |  | — |
International |  |  | — |  |  |  | — |  |  |  | — |
Total current |  |  | — |  |  |  | (3 | ) |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (5,884 | ) |  |  | — |  |  |  | — |
State |  |  | (260 | ) |  |  | — |  |  |  | — |
International |  |  | — |  |  |  | — |  |  |  | — |
Total deferred |  |  | (6,144 | ) |  |  | — |  |  |  | — |
Total income tax benefit |  | $ | (6,144 | ) |  | $ | (3 | ) |  | $ | — |
Variations from the federal statutory rate are as follows:
(in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Expected federal income tax expense (benefit) at statutory rate of 34% |  | $ | (5,755 | ) |  | $ | (3,068 | ) |  | $ | (3,348 | )
Effect of permanent other differences |  |  | 212 |  |  |  | 44 |  |  |  | — |
Difference in basis for sale of discontinued operations |  |  | (347 | ) |  |  | — |  |  |  | — |
State income tax benefit, net of federal benefit tax assets |  |  | (254 | ) |  |  | (135 | ) |  |  | (148 | )
Valuation allowance |  |  | — |  |  |  | 3,156 |  |  |  | 3,496 |
Total income tax (benefit) expense |  | $ | (6,144 | ) |  | $ | (3 | ) |  | $ | — |
Deferred income taxes reflect net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the net accumulated deferred income tax assets (liabilities) as of December 31, 2016 and 2015 are as follows:
|  | As of December 31, |
(in thousands) |  | 2016 |  |  | 2015 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Stock-based compensation |  | $ | 264 |  |  | $ | 1,723 |
Depreciation and amortization |  |  | 43 |  |  |  | (1,896 | )
Section 181 qualified production expense |  |  | (2,550 | ) |  |  | (3,563 | )
Net operating loss carryforward |  |  | — |  |  |  | 30,727 |
Charitable carryforward |  |  | — |  |  |  | 1,899 |
Other |  |  | 737 |  |  |  | 4,108 |
Tax credits |  |  | 953 |  |  |  | 922 |
Valuation allowance |  |  | — |  |  |  | (33,920 | )
Total deferred tax liabilities, net of valuation allowance |  | $ | (553 | ) |  | $ | — |
The source of income (loss) before income taxes are as follows:
(in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | (16,926 | ) |  | $ | (9,022 | ) |  | $ | (9,846 | )
International |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | (16,926 | ) |  | $ | (9,022 | ) |  | $ | (9,846 | )
Periodically, we perform assessments of the realization of our net deferred tax assets considering all available evidence, both positive and negative. During 2013, we determined that a full valuation allowance against our deferred tax assets was necessary due to the cumulative loss incurred over the three-year period ended December 31, 2013. Due to the gain on the sale of the Gaiam Brand segment and our expectation of utilizing the majority of our deferred tax assets to offset this gain, we released the valuation allowance in 2016 on these deferred tax assets. We expect to utilize a gross amount of $80.7 million of federal net operating losses and of $30.2 million of state net operating losses during 2016. We realized $0.8 million and $0.1 million in tax benefits recorded to additional paid-in capital because of the exercise of stock options during 2016 and 2015, respectively. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We measure the tax benefits recognized in the consolidated financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to our subjective assumptions and judgments which can materially affect amounts recognized in our consolidated balance sheets and consolidated statements of operations. The result of our assessment of our uncertain tax positions did not have a material impact on our consolidated financial statements. Our federal and state tax returns for all years after 2011 are subject to future examination by tax authorities for all our tax jurisdictions. We recognize interest and penalties related to income tax matters in interest and other income (expense) and corporate, general and administration expenses, respectively.

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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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