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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | 11.INCOME TAXES ﻿ The Company’s provision for income taxes is summarized as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | For the year
﻿Amounts in thousands |  | ended December 31,
﻿ |  |  | 2016 |  |  | 2015 |  |  | 2014
﻿U.S. Federal - Current |  | $ | 85 |  | $ | 84 |  | $ | (13)
﻿U.S. Federal - Deferred |  |  | 0 |  |  | 0 |  |  | 0
﻿Provision for U.S. federal income taxes |  | $ | 85 |  | $ | 84 |  | $ | (13)
﻿ |  |  |  |  |  |  |  |  |
﻿Foreign - Current |  | $ | 1,898 |  | $ | 2,875 |  | $ | 1,931
﻿Foreign - Deferred |  |  | (196) |  |  | (1,305) |  |  | (411)
﻿Provision for foreign income taxes |  |  | 1,702 |  |  | 1,570 |  |  | 1,520
﻿Total provision for income taxes |  | $ | 1,787 |  | $ | 1,654 |  | $ | 1,507
﻿ ﻿ The Company’s effective income tax rate differs from the statutory federal income tax rate as follows: ﻿ ﻿
﻿ |  |  |
﻿Amounts in thousands | 2016 | 2015 | 2014
﻿U.S. Federal income tax statutory rate | 34.0% | 34.0% | 34.0%
﻿Foreign income taxes | (10.0%) | (17.6%) | 68.0%
﻿Equity in Polish investment | 0.0% | 0.0% | 0.0%
﻿State income tax (net of federal benefit) | 0.2% | 0.0% | (15.0%)
﻿Meals, entertainment, gifts & giveaways | 1.1% | 1.0% | 38.7%
﻿Statutory to GAAP adjustments, including foreign currency | 0.5% | (1.2%) | (283.9%)
﻿Valuation allowance | (17.4%) | (16.5%) | 532.4%
﻿Unrecognized tax benefit | 0.0% | 4.3% | 0.0%
﻿Stock options | 1.6% | 3.4% | 0.0%
﻿Tax authority audit adjustment | 0.0% | 3.6% | 0.0%
﻿Permanent and other items | 1.5% | 0.3% | (14.6%)
﻿Total provision for income taxes | 11.5% | 11.3% | 359.7%
The Company’s current year effective income tax rate was impacted by a large decrease in pre-tax income in Mauritius, the decrease of pre-tax income in Austria and an increase in pre-tax incom e in the United States, Canada and Poland. The comparison of pre-tax income of $15.6 million for the year ended December 31, 2016, compared to pre-tax income of $14.6 million for the year ended December 31, 2015 should be considered when comparing tax rates year over year. The overall effective tax rate of 11.5% was significantly driven by the full release of the valuation allowance in Canada. A majority of the earnings recognized by the Company during the year ended December 31, 2016 were from the Company’s properties in Canada. Based on permanent items and the impact of foreign currency exchange rates and the valuation allowance release, the earnings in the Company’s Canadian properties accounted for 8.4% of the total tax expense recorded. The Company records deferred tax assets and liabilities based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted statutory tax rate in effect for the year these differences are expected to be taxable or reversed. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. The recorded deferred tax assets are reviewed for impairment on a quarterly basis by reviewing the Company’s internal estimates for future taxable income. ﻿ The Company assesses the continuing need for a valuation allowance that results from uncertainty regarding its ability to realize the benefits of the Company’s deferred tax assets. The Company has a valuation allowance of $5.7 million on its U.S. deferred tax assets as of December 31, 2016 due to the uncertainty of future taxable income. The valuation allowance for deferred tax assets in the U.S. continues to be monitored on a quarterly basis, and the Company may release all or a portion of the U.S. valuation allowance in 2017 in the event more positive evidence becomes available. During 2016, the Company released its $2.2 million Canadian valuation allowance on CDR’s deferred tax assets resulting in a tax benefit. The Company analyzed the likelihood of future realization of its deferred tax assets, including recent cumulative earnings by taxing jurisdiction, expectations of future taxable income or loss, the amount of net operating loss carryforwards not subject to limitations, the number of periods it will take to realize the net operating loss carryforwards and other relevant factors. Based on this analysis, the Company concluded that the operations in CDR had attained a sustained level of profitability sufficient to reduce its valuation allowance. The ultimate realization of deferred income tax assets depends on generation of future taxable income in the jurisdictions where the assets are located during the periods in which those temporary differences become deductible. If the Company concludes that its prospects for the realization of its deferred tax assets are more likely than not, the Company will then reduce its valuation allowance as appropriate and credit income tax. ﻿ The Company’s deferred income taxes at December 31, 2016 and 2015 are summarized as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  | 2016 |  | 2015
﻿Amounts in thousands |  |  |  |  |  | Current |  |  | Long Term
﻿Deferred tax assets (liabilities) - U.S. Federal and state: |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿Deferred tax assets |  |  |  |  |  |  |  |  |
﻿Amortization of goodwill for tax |  | $ | 316 |  | $ | 0 |  | $ | 368
﻿Amortization of startup costs |  |  | 190 |  |  | 0 |  |  | 232
﻿Property and equipment |  |  | 593 |  |  | 0 |  |  | 672
﻿NOL carry forward |  |  | 4,167 |  |  | 0 |  |  | 4,260
﻿Accrued liabilities and other |  |  | 668 |  |  | 167 |  |  | 444
﻿ |  |  | 5,934 |  |  | 167 |  |  | 5,976
﻿Valuation allowance |  |  | (5,717) |  |  | (163) |  |  | (5,827)
﻿ |  | $ | 217 |  | $ | 4 |  | $ | 149
﻿Deferred tax liabilities |  |  |  |  |  |  |  |  |
﻿Prepaid expenses |  | $ | (217) |  | $ | (153) |  | $ | 0
﻿ |  | $ | (217) |  | $ | (153) |  | $ | 0
﻿ |  |  |  |  |  |  |  |  |
﻿Current deferred tax asset (liability) |  | $ | 0 |  | $ | (149) |  | $ | 0
﻿ |  |  |  |  |  |  |  |  |
﻿Long-Term deferred tax asset (liability) |  | $ | 0 |  | $ | 0 |  | $ | 149
﻿ |  |  |  |  |  |  |  |  |
﻿Deferred tax assets (liabilities) - foreign |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿Deferred tax assets |  |  |  |  |  |  |  |  |
﻿Property and equipment |  | $ | 715 |  | $ | 0 |  | $ | 705
﻿ NOL carryforward |  |  | 2,806 |  |  | 0 |  |  | 3,375
﻿ Tax credits |  |  | 0 |  |  | 0 |  |  | 72
﻿Accrued liabilities and other |  |  | 943 |  |  | 305 |  |  | 480
﻿Contingent liability |  |  | 684 |  |  | 0 |  |  | 719
﻿Exchange rate gain or (loss) |  |  | 819 |  |  | 0 |  |  | 1,326
﻿ |  |  | 5,967 |  |  | 305 |  |  | 6,677
﻿Valuation allowance |  |  | 0 |  |  | 0 |  |  | (1,990)
﻿ |  | $ | 5,967 |  | $ | 305 |  | $ | 4,687
﻿Deferred tax liabilities |  |  |  |  |  |  |  |  |
﻿Property and equipment |  | $ | (2,609) |  | $ | 0 |  | $ | (2,722)
﻿Exchange rate gain or (loss) |  |  | (10) |  |  | 0 |  |  | (363)
﻿Others |  |  | (1,643) |  |  | 0 |  |  | (398)
﻿ |  | $ | (4,262) |  | $ | 0 |  | $ | (3,483)
﻿ |  |  |  |  |  |  |  |  |
﻿Current deferred tax asset (liability) |  | $ | 0 |  | $ | 305 |  | $ | 0
﻿ |  |  |  |  |  |  |  |  |
﻿Long-Term deferred tax asset (liability) |  | $ | 1,705 |  | $ | 0 |  | $ | 1,204
﻿ |  |  |  |  |  |  |  |  |
﻿ The Company has analyzed filing positions in all of the U.S. federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its U.S. federal tax return, its state tax return in Colorado and its foreign tax returns in Canada and Poland as “major” tax jurisdictions, as defined by the Code. ﻿ The Canadian Taxing Authority is currently conducting an income tax audit of CRA. The Company does not maintain a valuation allowance related to CRA and, as a result, any adjustment made by the taxing authority could have an impact on the effective tax rate. ﻿ The Company’s income tax returns for the following periods are subject to examination: ﻿
﻿ |  |  |
﻿ |  |  |
﻿Jurisdiction: |  | Periods |
﻿U.S. Federal |  | 2007-201 5 |
﻿U.S. State - Colorado |  | 2005-201 5 |
﻿Canada |  | 2011-201 5 |
﻿Mauritius |  | 2013-2015 |
﻿Poland |  | 2009-2015 |
﻿Austria |  | 2011-2015 |
﻿ The Company had income tax net operating loss carryforwards related to its domestic and international operations of approximately $24.2 million as of December 31, 2016. The Company had recorded $7.7 million of deferred tax assets related to the net operating loss carryforwards, excluding the impact of the adjustment of unrecognized tax benefits. The deferred tax assets expire as follows: ﻿ ﻿ ﻿
﻿ |  |  |
﻿Amounts in thousands |  |  |
﻿2026 - 2030 |  | $ | 2,773
﻿2031 - 2036 |  |  | 4,822
﻿No expiration |  |  | 56
﻿Total deferred tax assets |  | $ | 7,651
﻿ The Company believes it is more likely than not that the benefit from U.S. federal and state net operating loss carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance on the deferred tax assets related to the U.S. federal and state net operating loss carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets would be accounted for as a reduction of income tax. As of December 31, 2016, the Company had recorded $4.2 million in valuation allowances related to net operating loss deferred tax assets. ﻿ Certain net operating loss carryforwards in the Company’s filed income tax returns include unrecognized tax benefits. The deferred tax assets recognized for those net operating loss carryforwards are presented net of these unrecognized tax benefits. ﻿ As of December 31, 2016, the Company had undistributed foreign earnings of approximately $59.7 million that it considers indefinitely reinvested and, as of December 31, 2016, the Company had not provided for taxes for these undistributed foreign earnings. Based on the Company’s capital, debt and liquidity position, there is no expected need for cash repatriation from foreign subsidiaries, and all cash held in foreign jurisdictions is considered permanently reinvested. These earnings could become subject to income taxes if they are remitted as dividends, are loaned to the Company or any of the Company’s subsidiaries located in the United States, or if the Company sells its stock in the foreign subsidiaries. However, the Company believes that any additional taxes could be offset, in part or in whole, by foreign tax credits. ﻿ As of December 31, 2016, the Company’s unrecognized tax benefit totaled $0.8 million. A portion of this adjustment has been recorded as a component of taxes payable, and a portion of this adjustment has been recorded as a reduction to deferred tax assets in the accompanying consolidated balance sheet as of December 31, 2016. The Company may, from time to time, be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. The Company’s total amount of unrecognized tax benefit is summarized in the table below: ﻿ ﻿
﻿ |  |  |  |  |  |
﻿Amounts in thousands |  | 2016 |  | 2015
﻿Unrecognized tax benefit - January 1 |  | $ | 684 |  | $ | 61
﻿Gross increases - tax positions in prior period |  |  | 70 |  |  | 623
﻿Gross decreases - tax positions in prior period |  |  | 0 |  |  | 0
﻿Gross increases - tax positions in current period |  |  | 0 |  |  | 0
﻿Settlements |  |  | 0 |  |  | 0
﻿Lapse of statute of limitations |  |  | 0 |  |  | 0
﻿Unrecognized tax benefit - December 31 |  | $ | 754 |  | $ | 684
﻿ The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued penalties and interest of less than $0.1 million during 2016 and 2015. The $0.8 million balance of unrecognized tax benefits, if recognized, would affect the effective tax rate. ﻿ The Company’s U.S. and foreign pre-tax income is summarized in the table below: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿Amounts in thousands |  | 2016 |  | 2015 |  | 2014
﻿Income (loss) before taxes: |  |  |  |  |  |  |  |  |
﻿ U.S. |  | $ | 138 |  | $ | (1,593) |  | $ | (3,205)
﻿Foreign |  |  | 15,462 |  |  | 16,238 |  |  | 3,623
﻿Total income before taxes |  | $ | 15,600 |  | $ | 14,645 |  | $ | 418
﻿

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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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