XML 39 R25.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 17—INCOME TAXES (a) Composition of loss from continuing operations before income taxes is as follows:
|  | Year ended December 31, |
|  | 2014 |  |  | 2015 |
Domestic |  | $ | (8,204 | ) |  | $ | (9,110 | )
Foreign |  |  | (2,091 | ) |  |  | (308 | )
|  | $ | (10,295 | ) |  | $ | (9,418 | )
Income tax expense (benefit) consists of the following:
|  | Year ended December 31, |
|  | 2014 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State and local |  |  | 1 |  |  |  | 1 |
Foreign |  |  | 120 |  |  |  | (49 | )
|  |  | 121 |  |  |  | (48 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |
State and local |  |  | — |  |  |  | — |
Foreign |  |  | 43 |  |  |  | 259 |
|  |  | 43 |  |  |  | 259 |
Total income tax expense |  | $ | 164 |  |  | $ | 211 |
(b) Effective Income Tax Rates Set forth below is reconciliation between the federal tax rate and the Company’s effective income tax rates with respect to continuing operations:
|  | Year ended December 31, |
|  | 2014 |  |  | 2015 |
Statutory Federal rates |  |  | 34 | % |  |  | 34 | %
Increase (decrease) in income tax rate resulting from: |  |  |  |  |  |  |  |
Tax on foreign activities |  |  | 8 |  |  |  | 3 |
Other, net (primarily permanent differences) |  |  | (4 | ) |  |  | (2 | )
Valuation allowance |  |  | (40 | ) |  |  | (37 | )
Effective income tax rates |  |  | (2 | )% |  |  | (2 | )%
(c) Analysis of Deferred Tax Assets and (Liabilities)
|  | As of December 31, |
|  | 2014 |  |  | 2015 |
Deferred tax assets (liabilities) consist of the following: |  |  |  |  |  |  |  |
Employee benefits and deferred compensation |  | $ | 1,999 |  |  | $ | 1,754 |
Asset impairments |  |  | 5,868 |  |  |  | 2,693 |
Other temporary differences |  |  | 569 |  |  |  | (614 | )
Net operating loss carryforwards |  |  | 18,172 |  |  |  | 22,842 |
|  |  | 26,608 |  |  |  | 26,675 |
Valuation allowance |  |  | (26,121 | ) |  |  | (26,448 | )
Net deferred tax assets |  | $ | 487 |  |  | $ | 227 |
Valuation allowances relate principally net operating loss carryforwards related to the Company's consolidated tax losses as well as state tax losses related the Company's GridSense and OmniMetrix subsidiaries and book-tax differences related asset impairments and stock compensation expense of the Company. During the year ended December 31, 2015, the valuation allowance increased by $327. Deferred tax assets relate to primarily to net operating loss carryforwards at the Company's DSIT subsidiary. Such assets are included in Other current assets ($192 and $141 at December 31, 2014 and 2015, respectively) and Other assets ($295 and $86 at December 31, 2014 and 2015, respectively). During 2015, DSIT recorded a partial valuation allowance ($248) for certain non-current deferred assets due to the uncertainty regarding their utilization. (d) Summary of Tax Loss Carryforwards As of December 31, 2015, the Company had various net operating loss carryforwards expiring as follows:
Expiration |  | Federal |  |  | State |  |  | Foreign |
2023-2035 |  | $ | 61,193 |  |  | $ | 20,677 |  |  | $ | — |
Unlimited |  |  | — |  |  |  | — |  |  |  | 2,407 |
Total |  | $ | 61,193 |  |  | $ | 20,677 |  |  | $ | 2,407 |
(e) Taxation in the United States On October 22, 2004, The American Jobs Creation Act (the “Act”) was signed into law. The Act includes a deduction of 85% of certain foreign earnings that are repatriated, as defined in the Act. The Company’s foreign earnings are derived from the Company’s DSIT subsidiary. As a holding company without other business activity in Delaware, the Company is exempt from Delaware state income tax. Thus, the Company’s statutory income tax rate on domestic earnings is the federal rate of 34%. (f) Taxation in Israel The income of DSIT is taxed at regular rates. On August 5, 2013, the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) - 2013 was published in the Official Gazette, by which the corporate tax rate was raised by 1.5% to a rate of 26.5% for the 2014 calendar year. In January 2016, the Law for the Amendment of the Income Tax Ordinance (No.( 216 was published, enacting a reduction of corporate tax rate beginning in 2016 and thereafter, from 26.5% to 25%. Effective January 1, 2014, DSIT files its income tax returns in Israel as a "Preferred Enterprise". As a Preferred Enterprise, DSIT's corporate income tax rate for 2014 (and beyond) is 16%. (g) Uncertain Tax Positions (UTP) As of December 31, 2014 and 2015, no interest or penalties were accrued on the balance sheet related to UTP. During the years ending December 31, 2014 and 2015, the Company had no changes in unrecognized tax benefits or associated interest and penalties as a result of tax positions made during the current or prior periods with respect to its continuing or discontinued operations. The Company is subject to U.S. Federal and state income tax, Australian income tax (for residual activities) and Israeli income tax. As of January 1, 2016, the Company is no longer subject to examination by U.S. Federal taxing authorities for years before 2012, for years before 2011 for state income taxes, before 2011 for Israeli income taxes and before 2012 for Australian taxes. During 2014, the Company’s U.S. Federal income tax returns for the years ended December 31, 2011 through December 31, 2012 were examined by the IRS. No material adjustments were made by the IRS in the course of their audit.

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