Income Taxes

The provision (benefit) for income taxes is based on loss from operations before provision for income taxes and noncontrolling interests as follows ($ in thousands):



	Years Ended December 31,
	2015			2014			2013
United States	$	(98,254.0	)	$	(55,570.4	)	$	(38,705.2	)

	$	(98,254.0	)	$	(55,570.4	)	$	(38,705.2	)

The provision (benefit) for income taxes was as follows ($ in thousands):



		Years Ended December 31,
		2015			2014			2013
Current
	U.S. Federal	$	—		$	—		$	—
	State and local	—			—			—
		$	—		$	—		$	—
Deferred
	U.S. Federal	$	(14,695.5	)	$	159.0		$	476.9
	State and local	(2,548.0		)	(263.2		)	303.2
		$	(17,243.5	)	$	(104.2	)	$	780.1
Total
	U.S. Federal	$	(14,695.5	)	$	159.0		$	476.9
	State and local	(2,548.0		)	(263.2		)	303.2
		$	(17,243.5	)	$	(104.2	)	$	780.1

The provision (benefit) for income taxes is determined by applying the U.S. Federal statutory rate of 34% to income before income taxes as a result of the following ($ in thousands):



	Years Ended December 31,
	2015			2014			2013
U.S. Federal benefit at statutory rate	$	(33,406.4	)	$	(18,894.0	)	$	(13,159.8	)
State and local benefit net of U.S. federal tax	(4,926.9		)	(3,435.0		)	(3,430.9		)
Permanent non deductible expenses for U.S. taxes	706.4			1,094.6			1,798.2
True-up of prior year net operating loss	(556.5		)	(25.5		)	(91.4		)
Return to actual	—			—			(3,822.9		)
Effect of change in deferred tax rate	1.3			1,075.7			(1,094.8		)
Valuation allowance for deferred tax assets	20,938.6			20,080.0			20,581.7
Tax provision	$	(17,243.5	)	$	(104.2	)	$	780.1

Deferred income taxes at December 31, 2015, 2014 and 2013 consist of the following ($ in thousands):



	December 31,
	2015			2014			2013
Deferred Tax Assets:
Accumulated net operating losses (tax effected)	$	86,537.8		$	69,047.0		$	25,727.7
Deferred revenue	—			—			23.1
Deferred rent	11.1			(7.8		)	15.2
Share-based compensation	12,764.3			9,577.2			5,466.7
Intangibles	899.7			715.1			287.3
Accumulated depreciation	—			—			348.7
Charitable contributions	423.3			409.8			391.8
Bad debt provision	297.4			296.9			239.7
Capital loss carry-forward	6,973.0			6,925.1			6,644.5
Other	652.1			609.7			—
Deferred tax assets prior to tax credit carryovers	108,558.7			87,573.0			39,144.7

Deferred Tax Liabilities:
Accumulated depreciation	$	(66.0	)	$	(18.8	)	$	—
Intangible and indefinite lived assets	(932.7		)	(18,176.3		)	(3,599.1		)
Deferred tax liabilities	(998.7		)	(18,195.1		)	(3,599.1		)
	107,560.0			69,377.9			35,545.6
Valuation reserve	(108,492.7		)	(87,554.1		)	(39,144.7		)
Net deferred tax liability	$	(932.7	)	$	(18,176.2	)	$	(3,599.1	)

In assessing the realizability of deferred tax assets, including the net operating loss carryforwards (NOLs), the Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize its existing deferred tax assets. Based on its assessment, the Company has provided a full valuation allowance against its net deferred tax assets as their future utilization remains uncertain at this time.

As of December 31, 2015 and 2014, the Company had approximately $221.5 million and $177.2 million, respectively of Federal NOLs available to offset future taxable income expiring from 2026 through 2035. In accordance with Section 382 of the Internal Revenue code, the usage of the Company’s NOLs could be limited in the event of a change in ownership. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period when those temporary differences become deductible. If a change of ownership did occur there would be an annual limitation on the usage of the Company’s losses which are available through 2035.

The Company applies the FASB’s provisions for uncertain tax positions. The Company utilizes the two step process to determine the amount of recognized tax benefit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties associated with certain tax positions as a component of income tax expense.

As of December 31, 2015, management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year.

The Federal tax returns are currently being audited for the years 2012 and 2013. For years prior to 2011 the federal statute of limitations is closed. Most of the remaining states remain open to examination for a period of 3 to 4 years from date of filing. The Company files tax returns in all of the foreign jurisdictions that it has a permanent establishment and the tax filings remain subject to examination for 4 to 5 years.