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Income Tax | 12 Months Ended
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Dec. 31, 2015
Income Tax [Abstract] |
Income Tax | ﻿ NOTE 9 - Income Taxes Income before income tax expense includes the following: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2015 |  | 2014 |  | 2013
﻿United States |  | $ | 3,284 |  | $ | 2,778 |  | $ | 8,745
﻿Foreign |  |  | 23,149 |  |  | 12,066 |  |  | 3,973
﻿Income before income tax expense and equity earnings of unconsolidated joint ventures and entities |  | $ | 26,433 |  | $ | 14,844 |  | $ | 12,718
﻿Net (income) expense attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |
﻿United States |  |  | 206 |  |  | 200 |  |  | 24
﻿Foreign |  |  | (127) |  |  | (143) |  |  | (128)
﻿Equity earnings and gain on sale of unconsolidated subsidiary: |  |  |  |  |  |  |  |  |
﻿United States |  |  | -- |  |  | -- |  |  | (1)
﻿Foreign |  |  | 1,204 |  |  | 1,015 |  |  | 1,370
﻿Income before income tax expense, net of non-controlling interests |  | $ | 27,716 |  | $ | 15,916 |  | $ | 13,983
﻿ Significant components of the provision for income taxes are as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2015 |  | 2014 |  | 2013
﻿Current income tax expense |  |  |  |  |  |  |  |  |
﻿Federal |  | $ | 481 |  | $ | 827 |  | $ | 1,121
﻿State |  |  | 516 |  |  | 511 |  |  | 432
﻿Foreign |  |  | 3,120 |  |  | 1,251 |  |  | 1,283
﻿Total |  |  | 4,117 |  |  | 2,589 |  |  | 2,836
﻿Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
﻿Federal |  |  | 438 |  |  | (14,341) |  |  | --
﻿State |  |  | (971) |  |  | (1,234) |  |  | --
﻿Foreign |  |  | 1,359 |  |  | 3,201 |  |  | 2,106
﻿Total |  |  | 826 |  |  | (12,374) |  |  | 2,106
﻿Total income tax expense (benefit) |  | $ | 4,943 |  | $ | (9,785) |  | $ | 4,942
﻿ Deferred income taxes reflect the “temporary differences” between the financial statement carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, adjusted by the relevant tax rate. The components of the deferred tax assets and liabilities are as follows: ﻿
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2015 |  | December 31, 2014
﻿Deferred Tax Assets: |  |  |  |  |  |
﻿Net operating loss carry-forwards |  | $ | 13,286 |  | $ | 9,218
﻿Alternative minimum tax credit carry-forwards |  |  | 540 |  |  | 3,540
﻿Compensation and employee benefits |  |  | 5,531 |  |  | 6,625
﻿Deferred revenue |  |  | 7,657 |  |  | 8,564
﻿Accrued expenses |  |  | 7,971 |  |  | 7,409
﻿Accrued taxes |  |  | 3,285 |  |  | 4,264
﻿Land and property |  |  | 11,264 |  |  | 12,797
﻿Other |  |  | 1,058 |  |  | 924
﻿Total Deferred Tax Assets |  |  | 50,592 |  |  | 53,341
﻿Deferred Tax Liabilities: |  |  |  |  |  |
﻿Intangibles |  |  | (2,321) |  |  | (3,217)
﻿Cancellation of indebtedness |  |  | (2,396) |  |  | (3,824)
﻿Notes receivable |  |  | (8,696) |  |  | (8,097)
﻿Total Deferred Tax Liabilities |  |  | (13,413) |  |  | (15,138)
﻿Net deferred tax assets before valuation allowance |  |  | 37,179 |  |  | 38,203
﻿Valuation allowance |  |  | (11,530) |  |  | (15,936)
﻿Net deferred tax asset |  | $ | 25,649 |  | $ | 22,267
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. US GAAP presumes that a valuation allowance is required when there is substantial negative evidence about the realization of deferred tax assets, such as a pattern of comprehensive losses in recent years, coupled with facts that suggest such losses may continue. Because such negative evidence is available for our Puerto Rico, New Zealand and US state operations as of December 31, 2015, we recorded a valuation allowance of $11.5 million. As of December 31, 2015, we had the following carry-forwards:
| · |  | approximately $1.1 million in U.S. alternative minimum tax credit carry-forwards with no expiration date;
| · |  | approximately $17.5 million in available New Zealand loss carry-forwards with no expiration date;
| · |  | approximately $45 million in New York loss carryforwards expiring in 2034; and,
| · |  | approximately $40 million in New York city loss carryforwards expiring in 2034.
We disposed of our Puerto Rico operations during 2005 and plan no further investment in Puerto Rico for the foreseeable future. We have approximately $14.1 million in Puerto Rico loss carry-forwards expiring no later than 2018. No material future tax benefits from Puerto Rico loss carry-forwards can be recognized by the Company unless it re-enters the Puerto Rico market for which the Company has no current plans. We expect no other substantial limitations on the future use of U.S. or foreign loss carry-forwards except as described above. The provision for income taxes is different from amounts computed by applying U.S. statutory rates to consolidated losses before taxes. The significant reason for these differences is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2015 |  | 2014 |  | 2013
﻿Expected tax provision |  | $ | 9,397 |  | $ | 5,571 |  | $ | 4,894
﻿Increase (decrease) in tax expense resulting from: |  |  |  |  |  |  |  |  |
﻿Foreign tax rate differential |  |  | (654) |  |  | 1,252 |  |  | 3,095
﻿Change in valuation allowance |  |  | 1,531 |  |  | (17,187) |  |  | (3,882)
﻿Indefinite reinvestment assertion |  |  | (3,089) |  |  | -- |  |  | --
﻿State and local tax provision |  |  | 1,113 |  |  | 375 |  |  | 296
﻿State rate and law change |  |  | (3,635) |  |  | -- |  |  | --
﻿Prior year adjustments |  |  | (514) |  |  | -- |  |  | --
﻿Unrecognized tax benefits |  |  | 946 |  |  | 700 |  |  | 1,140
﻿Other |  |  | (152) |  |  | (496) |  |  | (601)
﻿Actual tax provision (benefit) |  | $ | 4,943 |  | $ | (9,785) |  | $ | 4,942
﻿ The undistributed earnings of the Company's Australian subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided on such undistributed earnings. Determination of the potential amount of unrecognized deferred U.S. income tax liability and foreign withholding taxes is not practicable because of the complexities associated with a hypothetical calculation. As part of current taxes payable, we have accrued $2.5 million in connection with federal and state liabilities arising from the “Tax Audit/Litigation” matter which has now been settled (see Note 12 – Commitments and Contingencies). The following table is a summary of the activity related to unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2015, 2014, and 2013: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(Dollars in thousands) |  | 2015 |  | 2014 |  | 2013
﻿Unrecognized tax benefits – gross beginning balance |  | $ | 3,760 |  | $ | 2,160 |  | $ | 2,171
﻿Gross increases – prior period tax provisions |  |  | 6,679 |  |  | 1,600 |  |  | (11)
﻿Gross increases – current period tax positions |  |  | 583 |  |  | -- |  |  | --
﻿Unrecognized tax benefits – gross ending balance |  | $ | 11,022 |  | $ | 3,760 |  | $ | 2,160
﻿ We record interest and penalties related to income tax matters as part of income tax expense. We had approximately $10.8 million and $11.4 million of gross tax benefits as of the adoption date and December 31, 2007, respectively, plus $1.7 million and $2.3 million of tax interest unrecognized on the financial statements as of each date, respectively. The gross tax benefits mostly reflect operating loss carry-forwards and the IRS “Tax Audit/Litigation” case described below in Note 12 – Commitments and Contingencies. During the period January 1, 2013 to December 31, 2013 we recorded a decrease to tax interest of approximately $1.4 million, resulting in a total balance of $1.8 million in interest. During the period January 1, 2014 to December 31, 2014, we recorded an increase to tax interest of $3.6 million, resulting in a total balance of $5.4 million in interest. During the period January 1, 2015 to December 31, 2015, we recorded an increase to tax interest of $0.5 million, resulting in a total $5.9 million in interest. It is difficult to predict the timing and resolution of uncertain tax positions. Based upon the Company’s assessment of many factors, including past experience and judgments about future events, it is probable that within the next 12 months the reserve for uncertain tax positions will increase within a range of $500,000 to $1.5 million. The reasons for such change include but are not limited to tax positions expected to be taken during 2016, revaluation of current uncertain tax positions, and expiring statutes of limitations. Generally, changes to our federal and most state income tax returns for the calendar year 2010 and earlier are barred by statutes of limitations. Certain U.S. subsidiaries filed federal and state tax returns for periods before these entities became consolidated with us. These subsidiaries were examined by IRS for the years 1996 to 1999 and significant tax deficiencies were assessed for those years. Those deficiencies have been settled, as discussed in “Tax Audit/Litigation,” Note 12 – Commitments and Contingencies. New Zealand tax returns for the Reading New Zealand tax consolidated group for 2009 and later are under examination as of December 31, 2015. The income tax returns filed in Australia and Puerto Rico for calendar year 2011 and afterward generally remain open for examination as of December 31, 2015.

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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=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
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