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.