XML 141 R20.htm IDEA: XBRL DOCUMENT
v2.4.1.9

INCOME TAXES: | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 11. INCOME TAXES: A reconciliation of the statutory federal income taxes to the recorded provision for income taxes from continuing operations is as follows:
|  | For the Years Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Statutory tax (@ 35% rate) |  | $ | (2,775) |  | $ | (5,486) |  | $ | (7,244) |
Effect of state taxes, net of federal benefit |  |  | (719) |  |  | (189) |  |  | (450) |
Effect of state rate and tax law changes |  |  | 600 |  |  | 145 |  |  | 407 |
Other permanent items |  |  | 206 |  |  | 214 |  |  | 149 |
Disallowed interest |  |  | 799 |  |  | 5,632 |  |  | 5,364 |
Non-deductible officer’s compensation |  |  | 2,369 |  |  | 1,453 |  |  | 1,012 |
Valuation allowance |  |  | 35,951 |  |  | 42,845 |  |  | 34,644 |
Noncontrolling interest |  |  | (6,752) |  |  | (16,229) |  |  | — |
NOL adjustments |  |  | 4,724 |  |  | — |  |  | — |
Expiring NOLs and charitable carryovers |  |  | 156 |  |  | 64 |  |  | 137 |
Forfeiture of stock-based compensation |  |  | 61 |  |  | 512 |  |  | 163 |
Uncertain tax positions |  |  | 153 |  |  | — |  |  | (709) |
Other |  |  | 41 |  |  | (242) |  |  | (238) |
Provision for income taxes |  | $ | 34,814 |  | $ | 28,719 |  | $ | 33,235 |
The components of the provision for income taxes from continuing operations are as follows:
|  | For the Years Ended |
|  | December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Federal: |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  | $ | 92 |  | $ | (639) |
Deferred |  |  | 31,402 |  |  | 21,084 |  |  | 29,120 |
State: |  |  |  |  |  |  |  |  |  |
Current |  |  | 558 |  |  | 1,319 |  |  | (649) |
Deferred |  |  | 2,854 |  |  | 6,224 |  |  | 5,403 |
Provision for income taxes |  | $ | 34,814 |  | $ | 28,719 |  | $ | 33,235 |
The significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | As of December 31, |
|  | 2014 |  | 2013 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 1,315 |  | $ | 1,417 |
Accruals |  |  | 1,974 |  |  | 2,200 |
Total current deferred tax assets before valuation allowance |  |  | 3,289 |  |  | 3,617 |
Valuation allowance |  |  | (3,117) |  |  | (4,683) |
Total current deferred tax assets (liabilities), net |  |  | 172 |  |  | (1,066) |
Fixed assets |  |  | 901 |  |  | 477 |
Stock-based compensation |  |  | 1,200 |  |  | 890 |
Net operating loss carryforwards |  |  | 336,020 |  |  | 309,546 |
Other |  |  | 563 |  |  | 696 |
Total noncurrent deferred tax assets before valuation allowance |  |  | 338,684 |  |  | 311,609 |
Valuation allowance |  |  | (355,299) |  |  | (317,782) |
Net noncurrent deferred tax liabilities |  |  | (16,615) |  |  | (6,173) |
Total deferred tax liabilities |  | $ | (16,443) |  | $ | (7,239) |
Deferred tax liabilities: |  |  |  |  |  |  |
Prepaid expenses |  |  | (122) |  |  | (134) |
Total current deferred tax liability |  |  | (122) |  |  | (134) |
Intangible assets |  |  | (209,278) |  |  | (170,673) |
Partnership interests |  |  | (26,039) |  |  | (36,895) |
Other |  |  | (531) |  |  | (504) |
Total noncurrent deferred tax liabilities |  |  | (235,848) |  |  | (208,072) |
Total deferred tax liabilities |  |  | (235,970) |  |  | (208,206) |
Net current deferred tax asset (liability) |  |  | 50 |  |  | (1,200) |
Net noncurrent deferred tax liability |  |  | (252,463) |  |  | (214,245) |
Net deferred tax liability |  | $ | (252,413) |  | $ | (215,445) |
As of December 31, 2014, the Company had federal and state net operating loss (“NOL”) carryforward amounts of approximately $862.5 million and $914.1 million, respectively. The state NOLs are applied separately from the federal NOL as the Company generally files separate state returns for each subsidiary. Additionally, the amount of the state NOLs may change if future apportionment factors differ from current factors. The NOLs may be subject to limitation under Internal Revenue Code Section 382. The NOLs begin to expire as early as 2015, with the final expirations in 2034. Deferred income taxes reflect the impact of temporary differences between the assets and liabilities recognized for financial reporting purposes and amounts recognized for tax purposes. Deferred taxes are based on tax laws as currently enacted. The Company had unrecognized tax benefits of approximately $5.2 million related to state NOLs of approximately $57.2 million as of December 31, 2014. The Company concluded it was more likely than not that the benefit from certain of its deferred tax assets (“DTAs”) would not be realized. The Company considered its historically profitable jurisdictions, its sources of future taxable income and tax planning strategies in determining the amount of valuation allowance recorded. As part of that assessment, the Company also determined that it was not appropriate under generally accepted accounting principles to benefit its DTAs with deferred tax liabilities (“DTLs”) related to indefinite-lived intangibles that cannot be scheduled to reverse in the same requisite period. Because the DTL in this case would not reverse until some future indefinite period when the intangibles are either sold or impaired, any resulting temporary differences cannot be considered a source of future taxable income to support realization of the DTAs. As a result of the assessment, and given the current total three year cumulative loss position, the uncertainty of future taxable income and the feasibility of tax planning strategies, the Company recorded a valuation allowance of approximately $358.4 million, $322.5 million and $279.6 million as of December 31, 2014, 2013 and 2012, respectively. The nature of the uncertainties pertaining to the Company’s income taxes is primarily due to various state NOL positions. As of December 31, 2014, the Company had unrecognized tax benefits of approximately $5.2 million, of which a net amount of approximately $3.4 million, if recognized, would impact the effective tax rate if there was no valuation allowance. The Company estimates no change to its unrecognized tax benefits prior to the NOL expiration. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. Accordingly, we recorded $21,000 of interest and penalties for the year ended December 31, 2014. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Balance as of January 1 |  | $ | 5,071 |  | $ | 5,071 |  | $ | 5,780 |
Additions for tax positions related to prior years |  |  | 153 |  |  | — |  |  | — |
Reductions for tax positions as a result of the lapse of applicable statutes of limitations |  |  | — |  |  | — |  |  | (600) |
Reductions for tax positions as a result of tax settlements |  |  | — |  |  | — |  |  | (109) |
Balance as of December 31 |  | $ | 5,224 |  | $ | 5,071 |  | $ | 5,071 |
As of December 31, 2014, Radio One is under examination by the state of New York for the tax years ended December 31, 2009, 2010, and 2011. The Company’s open tax years for federal income tax examinations include the tax years ended December 31, 2011 through 2014. Additionally, prior years are open to the extent of the amount of the net operating loss from that year. For state and local purposes, the open years for tax examinations include the tax years ended December 31, 2010 through 2014.

X
- 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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 Reference 6: 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration