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INCOME TAXES. | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES. |
| 10. | INCOME TAXES.
The Company recorded a provision (benefit) for income taxes as follows (in thousands):
|  | Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current provision (benefit) |  | $ | (490 | ) |  | $ | 141 |  |  | $ | (8,011 | )
Deferred provision (benefit) |  |  | 169 |  |  |  | (1,122 | ) |  |  | (2,023 | )
Total |  | $ | (321 | ) |  | $ | (981 | ) |  | $ | (10,034 | )
A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows:
|  | Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 4.0 |  |  |  | 6.4 |  |  |  | 9.2 |
Change in valuation allowance |  |  | (34.5 | ) |  |  | (298.8 | ) |  |  | (4.2 | )
Impact of Federal tax rate change on deferreds |  |  | (28.4 | ) |  |  | — |  |  |  | — |
Impact of Federal tax rate change on valuation allowance |  |  | 29.4 |  |  |  | — |  |  |  | — |
Fair value adjustments and warrant inducements |  |  | 0.4 |  |  |  | 37.2 |  |  |  | 2.0 |
Noncontrolling interests |  |  | (3.2 | ) |  |  | — |  |  |  | — |
Domestic production gross receipts deduction |  |  | — |  |  |  | — |  |  |  | (2.9 | )
Section 382 reduction to loss carryover |  |  | — |  |  |  | — |  |  |  | 0.1 |
Stock compensation |  |  | (0.1 | ) |  |  | 58.8 |  |  |  | (0.8 | )
Non-deductible items |  |  | (0.2 | ) |  |  | 8.9 |  |  |  | (0.5 | )
Other |  |  | (1.6 | ) |  |  | (27.5 | ) |  |  | (3.2 | )
Effective rate |  |  | 0.8 | % |  |  | (180.0 | )% |  |  | 34.7 | %
Deferred income taxes are provided using the asset and liability method to reflect temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using presently enacted tax rates and laws. The components of deferred income taxes included in the consolidated balance sheets were as follows (in thousands):
|  | December 31, |
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 40,989 |  |  | $ | 45,709 |
R&D and AMT credits |  |  | 1,797 |  |  |  | 2,465 |
Railcar contracts |  |  | 1,415 |  |  |  | 3,348 |
Stock-based compensation |  |  | 738 |  |  |  | 946 |
Allowance for doubtful accounts and other assets |  |  | 637 |  |  |  | 856 |
Derivatives |  |  | 267 |  |  |  | 1,228 |
Pension liability |  |  | 2,939 |  |  |  | 2,204 |
Other |  |  | 2,097 |  |  |  | 4,316 |
Total deferred tax assets |  |  | 50,879 |  |  |  | 61,072 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (25,194 | ) |  |  | (45,757 | )
Intangibles |  |  | (749 | ) |  |  | (1,091 | )
Other |  |  | (521 | ) |  |  | (1,593 | )
Total deferred tax liabilities |  |  | (26,464 | ) |  |  | (48,441 | )
Valuation allowance |  |  | (24,639 | ) |  |  | (12,683 | )
Net deferred tax liabilities, included in other liabilities |  | $ | (224 | ) |  | $ | (52 | )
A portion of the Company’s net operating loss carryforwards will be subject to provisions of the tax law that limit the use of losses incurred by a company prior to the date certain ownership changes occur. Due to the limitation, a significant portion of these net operating loss carryforwards will expire regardless of whether the Company generates future taxable income. After reducing these net operating loss carryforwards for the amount which will expire due to this limitation, the Company had remaining federal net operating loss carryforwards of approximately $154,589,000 and state net operating loss carryforwards of approximately $148,921,000 at December 31, 2017. These net operating loss carryforwards expire as follows (in thousands):
Tax Years |  | Federal |  |  | State |
2018–2022 |  | $ | — |  |  | $ | — |
2023–2027 |  |  | 13,038 |  |  |  | 2,945 |
2028–2032 |  |  | 22,025 |  |  |  | 65,921 |
2033–2036 |  |  | 119,526 |  |  |  | 80,055 |
|  | $ | 154,589 |  |  | $ | 148,921 |
Certain of these net operating losses are not immediately available, but become available to be utilized in each of the years ended December 31, as follows (in thousands):
Year |  | Federal |  |  | State |
2017 |  | $ | 59,675 |  |  | $ | 82,892 |
2018 |  |  | 6,441 |  |  |  | 5,372 |
2019 |  |  | 6,374 |  |  |  | 5,345 |
2020 |  |  | 6,308 |  |  |  | 5,318 |
2021 |  |  | 6,308 |  |  |  | 5,318 |
Thereafter |  |  | 69,483 |  |  |  | 44,676 |
|  | $ | 154,589 |  |  | $ | 148,921 |
To the extent amounts are not utilized in any year, they may be carried forward to the next year until expiration. These amounts may change if there are future additional limitations on their utilization. In assessing whether the deferred tax assets are realizable, a more likely than not standard is applied. If it is determined that it is more likely than not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance was established in the amount of $22,585,000, $12,683,000 and $39,838,000 at December 31, 2017, 2016 and 2015, respectively, based on the Company’s assessment of the future realizability of certain deferred tax assets. The valuation allowance on deferred tax assets is related to future deductible temporary differences and net operating loss carryforwards (exclusive of net operating losses associated with items recorded directly to equity) for which the Company has concluded it is more likely than not that these items will not be realized in the ordinary course of operations. For the year ended December 31, 2017, the Company recorded an increase in the valuation allowance of $11,956,000. This increase was primarily the offsetting impact of a decrease in deferred tax liabilities associated with property and equipment, as a result of the finalization of the deferred tax attributes of Pacific Aurora, which was subject to a 2016 sale of a noncontrolling interest. For the year ended December 31, 2016, the Company recorded a decrease in the valuation allowance of $27,155,000, including approximately $13,500,000 related to finalizing, certain aspects of the deferred tax attributes of the 2015 PE Central acquisition, and approximately $11,500,000 related to the sale of the noncontrolling interest in Pacific Aurora, which had the impact of an increase in both the net deferred tax asset and related valuation allowance. For the year ended December 31, 2015, the Company recognized $1,500,000 in tax benefit related to adjustments to its tax asset valuation allowance from a prior year. At December 31, 2017, the Company accrued $235,000 in tax uncertainties. There was no accrued interest or penalties relating to tax uncertainties at December 31, 2016. The Tax Cuts and Jobs Act (“TCJA”) was enacted on December 22, 2017. The Company recognized the income tax effects of the TCJA in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the TCJA was signed into law. As such, the Company’s financial results reflect the income tax effects of the TCJA for which the accounting under ASC Topic 740 is complete. The Company did not identify items for which the income tax effects of the TCJA have not been completed and a reasonable estimate could not be determined as of December 31, 2017. Amounts recorded where accounting is complete principally relate to the reduction in the U.S. corporate income tax rate to 21%, which resulted in the Company reporting an income tax benefit of $321,000 to remeasure deferred taxes liabilities associated with indefinitely lived intangible assets that will reverse at the new 21% rate. This rate reduction decreased gross deferred assets by approximately $10,170,000 and valuation allowance by $10,545,000. Absent this deferred tax liability, the Company is in a net deferred tax asset position that is offset by a full valuation allowance, resulting in a net tax effect of zero. Other significant provisions of the TCJA that are not yet effective but may impact income taxes in future years include: additional limitations on certain meals and entertainment expenses, the inclusion of commissions and performance-based compensation in determining the excessive compensation limitation, limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, and a limitation of net operating losses generated after fiscal 2018 to 80% of taxable income. The Company is subject to income tax in the United States federal jurisdiction and various state jurisdictions and has identified its federal tax return and tax returns in state jurisdictions below as “major” tax filings. These jurisdictions, along with the years still open to audit under the applicable statutes of limitation, are as follows:
Jurisdiction |  | Tax Years
Federal |  | 2014 – 2016
Arizona |  | 2014 – 2016
California |  | 2013 – 2016
Colorado |  | 2013 – 2016
Idaho |  | 2014 – 2016
Illinois |  | 2014 – 2016
Indiana |  | 2014 – 2016
Iowa |  | 2014 – 2016
Kansas |  | 2014 – 2016
Minnesota |  | 2014 – 2016
Missouri |  | 2014 – 2016
Nebraska |  | 2014 – 2016
Oklahoma |  | 2014 – 2016
Oregon |  | 2014 – 2016
Texas |  | 2013 – 2016
However, because the Company had net operating losses and credits carried forward in several of the jurisdictions, including the United States federal and California jurisdictions, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax attributes carried forward to open years.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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