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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes |
Income Taxes | 12. Income Taxes The Company’s components of loss before income taxes are as follows:
|  | Year Ended December 31, |  | Three Months Ended December 31, |  | Year Ended September 30, |
|  | 2016 |  | 2015 |  | 2014 |  | 2014 |
Loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | (41,162,000) |  | $ | (36,230,000) |  | $ | (6,249,000) |  | $ | (11,671,000) |
Foreign |  |  | (5,079,000) |  |  | (3,804,000) |  |  | (654,000) |  |  | (6,229,000) |
Total |  | $ | (46,241,000) |  | $ | (40,034,000) |  | $ | (6,903,000) |  | $ | (17,900,000) |
The Company recorded income tax benefit of $6,449,000 and $13,755,000 in the years ended December 31, 2016 and 2015, respectively. The Company recorded income tax benefit of $1,912,000 and $5,280,000 in the three months ended December 31, 2014 and year ended September 30, 2014 respectively. Income tax benefit was comprised of the following:
|  | Year Ended December 31, |  | Three Months Ended December 31, |  | Year Ended September 30, |
|  | 2016 |  | 2015 |  | 2014 |  | 2014 |
Current federal benefit |  | $ | 215,000 |  | $ | 280,000 |  | $ | — |  | $ | 74,000 |
Current state benefit (expense) |  |  | 181,000 |  |  | (571,000) |  |  | (39,000) |  |  | (633,000) |
Current foreign expense |  |  | — |  |  | — |  |  | — |  |  | (228,000) |
Deferred federal benefit |  |  | 5,795,000 |  |  | 12,499,000 |  |  | 1,783,000 |  |  | 5,489,000 |
Deferred state (expense) benefit |  |  | (847,000) |  |  | 860,000 |  |  | 168,000 |  |  | 578,000 |
Deferred foreign benefit |  |  | 1,105,000 |  |  | 687,000 |  |  | — |  |  | — |
Total |  | $ | 6,449,000 |  | $ | 13,755,000 |  | $ | 1,912,000 |  | $ | 5,280,000 |
The income tax provision differs from the amount computed by applying the statutory federal income tax rate to losses before income taxes as follows:
|  | Year Ended December 31, |  | Three Months Ended December 31, |  | Year Ended September 30, |
|  | 2016 |  | 2015 |  | 2014 |  | 2014 |
Tax benefit computed at statutory rate of 35% |  | $ | 16,184,000 |  | $ | 14,012,000 |  | $ | 2,416,000 |  | $ | 6,265,000 |
Change in valuation allowance |  |  | (10,200,000) |  |  | (502,000) |  |  | (170,000) |  |  | (1,506,000) |
State income tax (expense) benefit, net of federal tax |  |  | (433,000) |  |  | 423,000 |  |  | 83,000 |  |  | (32,000) |
Foreign losses |  |  | 985,000 |  |  | 954,000 |  |  | 170,000 |  |  | 1,506,000 |
Transaction costs |  |  | — |  |  | (445,000) |  |  | (522,000) |  |  | (332,000) |
Other |  |  | (87,000) |  |  | (687,000) |  |  | (65,000) |  |  | (621,000) |
Income tax benefit |  | $ | 6,449,000 |  | $ | 13,755,000 |  | $ | 1,912,000 |  | $ | 5,280,000 |
The principal components of the Company’s net deferred tax assets (liabilities) are as follows:
|  | December 31, |
|  | 2016 |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |
Federal tax net operating loss ("NOL") carry forward |  | $ | 32,746,000 |  | $ | 23,002,000 |
Foreign tax NOL carry forward |  |  | 4,486,000 |  |  | 3,694,000 |
Deferred revenue |  |  | 462,000 |  |  | 1,193,000 |
Restricted stock |  |  | 318,000 |  |  | 214,000 |
Workers’ compensation |  |  | 74,000 |  |  | 144,000 |
State tax NOL carry forward |  |  | 1,223,000 |  |  | 850,000 |
Self-insurance |  |  | 219,000 |  |  | 260,000 |
Canadian start-up costs |  |  | 275,000 |  |  | 296,000 |
Alternative Minimum Tax credit carry forward |  |  | 315,000 |  |  | 315,000 |
Foreign tax credit |  |  | 1,874,000 |  |  | 1,874,000 |
Other comprehensive income |  |  | 786,000 |  |  | 1,055,000 |
Uncertain tax positions |  |  | 512,000 |  |  | 562,000 |
Other |  |  | (264,000) |  |  | (91,000) |
Total gross deferred tax assets |  |  | 43,026,000 |  |  | 33,368,000 |
Less valuation allowances |  |  | (13,602,000) |  |  | (3,707,000) |
Total net deferred tax assets |  |  | 29,424,000 |  |  | 29,661,000 |
Deferred tax liabilities: |  |  |  |  |  |  |
Property and equipment |  |  | (29,035,000) |  |  | (34,980,000) |
Total net deferred tax assets (liabilities) |  | $ | 389,000 |  | $ | (5,319,000) |
Noncurrent portion of foreign deferred tax assets |  | $ | 535,000 |  | $ | — |
Noncurrent portion of domestic deferred tax liabilities |  |  | (146,000) |  |  | (5,319,000) |
Total net deferred tax assets (liabilities) |  | $ | 389,000 |  | $ | (5,319,000) |
At December 31, 2016, the Company had a gross NOL for U.S. federal income tax purposes of approximately $93,802,000. This NOL will begin to expire in 2027. The Company will carry forward the net federal NOL of approximately $32,746,000. The Company also had state NOL’s that will affect state taxes of approximately $1,881,000 at December 31, 2016. State NOL’s began to expire in 2015. The Company also has a Canadian NOL of $17,253,000 that will begin to expire in 2032. In evaluating the possible sources of taxable income during 2016, the Company determined it is more likely than not that the remaining deferred tax assets will not be realizable. As a result, the Company recorded full valuation allowances against its federal, state, and foreign deferred tax assets with the exception of its trademark intangible and the foreign deferred tax assets associated with NOL’s that can be carried back against prior losses. A summary of the Company’s gross uncertain tax positions at December 31, 2016 and 2015 as well as activity for the years then ended are as follows:
|  | December 31, |
|  | 2016 |  | 2015 |
Balance at beginning of year |  | $ | 1,684,000 |  | $ | — |
Established at Merger date |  |  | — |  |  | 715,000 |
(Decrease) increase in prior year tax positions |  |  | (14,000) |  |  | 455,000 |
Increase in current year tax positions |  |  | 157,000 |  |  | 514,000 |
Liability statute expiration |  |  | (338,000) |  |  | — |
Balance at end of year |  | $ | 1,489,000 |  | $ | 1,684,000 |
There were no uncertain tax positions for the three months ended December 31, 2014 and the year ended September 30, 2014. The tax years generally subject to future examination by tax authorities are for the years ended December 31, 2013 and after. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. Due to the potential resolution of amended federal, state and foreign tax returns and the expiration of various statutes of limitations, it is reasonably possible that the full uncertain tax positions balance at December 31, 2016 may reverse within the next 12 months.

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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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