XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The income tax benefits attributable to our loss before income taxes consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2015 |  | 2014
Current: | Federal | $ | (631 | ) |  | $ | (3,436 | )
| State | (62 | ) |  | 379 |
|  | (693 | ) |  | (3,057 | )
Deferred: | Federal | 600 |  |  | 7,925 |
| State | 12 |  |  | 1,119 |
| Increase in valuation allowance | (261 | ) |  | (6,975 | )
|  | 351 |  |  | 2,069 |
|  | $ | (342 | ) |  | $ | (988 | )
A reconciliation of the federal income tax statutory rate and the Company’s effective tax rate is as follows (in thousands):
| Year Ended December 31,
| 2015 |  | 2014
| Percent |  | Amount |  | Percent |  | Amount
Federal income tax benefit at U.S. statutory rate | 34.0 | % |  | $ | (564 | ) |  | 35.0 | % |  | $ | (7,641 | )
State taxes, net of federal benefit | 7.8 | % |  | (129 | ) |  | 2.6 | % |  | (570 | )
Change in valuation allowance | (15.7 | )% |  | 261 |  |  | (31.9 | )% |  | 6,975 |
Permanent differences | (7.3 | )% |  | 121 |  |  | (0.4 | )% |  | 92 |
Credits | 5.5 | % |  | (91 | ) |  | — |  |  | — |
Adjustments to beginning deferred balances | (3.7 | )% |  | 60 |  |  | (0.2 | )% |  | 42 |
Other | — | % |  | — |  |  | (0.6 | )% |  | 114 |
| 20.6 | % |  | $ | (342 | ) |  | 4.5 | % |  | $ | (988 | )
Our deferred tax assets (liabilities) consisted of the following (in thousands):
| December 31,
| 2015 |  | 2014
Deferred tax assets: |  |  |
Deferred compensation | $ | 230 |  |  | $ | 238 |
Depreciation of fixed assets | 52 |  |  | 91 |
Intangible assets and amortization | 7,284 |  |  | 7,249 |
Net operating loss carry-forwards | 1,384 |  |  | — |
Accrued expenses | 441 |  |  | 642 |
Allowance for doubtful accounts | 47 |  |  | 199 |
Other | 134 |  |  | 29 |
Valuation allowance | (7,236 | ) |  | (6,975 | )
| 2,336 |  |  | 1,473 |
Deferred tax liabilities: |  |  |  |  |
Depreciation of fixed assets | (772 | ) |  | (455 | )
Amortization of indefinite lived intangibles | (1,276 | ) |  | (926 | )
Prepaid expenses | (1,085 | ) |  | (772 | )
Effect of state taxes on future federal returns | (391 | ) |  | (200 | )
Other | (88 | ) |  | (46 | )
| (3,612 | ) |  | (2,399 | )
| $ | (1,276 | ) |  | $ | (926 | )
As of December 31, 2015, we had a gross federal net operating loss carry-forward of $3.1 million and state tax carry-forwards of $4.8 million, all of which can be carried forward 20 years and expire after 2035. We also have general business credits of $0.1 million which expire after 2035. The impairment charges recorded in 2014 resulted in a significant amount of deferred tax assets. In assessing our ability to realize our deferred tax assets, we consider whether it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Our assessment evaluated this, plus all other positive and negative evidence in determining the need for a valuation allowance. We assessed the realizability of deferred tax assets and have concluded that we have not met the "more likely than not" threshold. As a result, during 2014, a valuation allowance of $7 million was recorded against federal and certain state deferred tax assets, which also resulted in a tax rate substantially below statutory rates. As of December 31, 2015, we continue to provide a valuation allowance against our remaining deferred tax assets after being utilized by deferred tax liabilities for all jurisdictions. The impairment charges and the valuation reserve against deferred tax assets have no effect on the actual taxes paid or owed by the Company. As of December 31, 2015 and 2014, we had $1.3 million and $0.9 million, respectively, of deferred tax liabilities relating to goodwill and other indefinite-lived intangibles for which the timing of the reversal is not determinable and, therefore, does not assure the realization of deferred tax assets or reduce the need for a valuation allowance. Our 2014 federal tax return resulted in a tax loss which we elected to carry-back to taxable income earned during 2012 in accordance with IRS rules. This carry-back resulted in an income tax refund of $3.7 million during 2015. When accounting for uncertain tax positions, accounting standards require that tax positions be assessed using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold. It is then measured at the largest amount of benefit that is greater than 50% likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. It is our policy to recognize penalties and interest related to unrecognized tax benefits in the provision for income taxes. Management has made an annual analysis of its state and federal tax returns and concluded that the Company has no recordable liability, as of December 31, 2015 or 2014, for unrecognized tax benefits as a result of uncertain tax positions taken. As of December 31, 2015, the Company is subject to U.S. federal income tax examinations for the tax years 2012 through 2015. In addition, the Company is subject to state and local income tax examinations for various tax years in the taxing jurisdictions in which the Company operates.

X
- References No definition available. + 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 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=6907707&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=6907707&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=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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration