v3.3.1.900

INCOME TAXES (Block) | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure Abstract |
Income Tax Disclosure Text Block | 14. INCOME TAXES Effective Tax Rate - Overview The Company’s effective income tax rate may be impacted by: (1) changes in the level of income in any of the Company’s taxing jurisdictions; (2) changes in the statutes and rules applicable to taxable income in the jurisdictions in which the Company operates; (3) changes in the expected outcome of income tax audits; (4) changes in the estimate of expenses that are not deductible for tax purposes; (5) income taxes in certain states where the states’ current taxable in come is dependent on factors other than the Company’s consolidated net income; and (6) adding facilities in states that on average have different income tax rates from states in which the Company currently operates and the resulting effect on previously re ported temporary differences between the tax and financial reporting bases of the Company’s assets and liabilities. The Company’s annual effective tax rate may also be materially impacted by tax expense associated with non-amortizable assets such as broadc asting licenses and goodwill and changes in the deferred tax valuation allowance. An impairment loss for financial statement purposes will result in an income tax benefit during the period incurred as the amortization of broadcasting licenses and goodwil l is deductible for income tax purposes. Exp ected And Reported Income Taxes (Benefit) Income tax expense (benefit) computed using the United States federal statutory rates is reconciled to the reported income tax expense (benefit) as follows:
|  |  | Years Ended December 31,
|  |  |  | 2015 |  | 2014 |  | 2013
|  |  |  | (amounts in thousands)
Federal statutory income tax rate |  |  | 35% |  |  | 35% |  |  | 35%
Computed tax expense at federal statutory rates on income |  |  |  |  |  |  |  |  |
| before income taxes |  | $ | 16,667 |  | $ | 16,357 |  | $ | 16,975
State income tax expense, net of federal benefit |  |  | 1,333 |  |  | 2,491 |  |  | 3,399
Non-recognition of expense due to full valuation allowance |  |  | (244) |  |  | - |  |  | 54
Tax benefit shortfall associated with share-based awards |  |  | 12 |  |  | 62 |  |  | 997
Nondeductible expenses and other |  |  | 669 |  |  | 1,001 |  |  | 1,051
Income taxes |  | $ | 18,437 |  | $ | 19,911 |  | $ | 22,476
For 2015 T he effective income tax rate was 38.7%. This rate was higher t han the federal statutory rate of 35% primarily due to the combination of: (1) an increase in net deferred tax liabilities associated with non-amortizable assets such as broadcasting licenses and goodwill; (2) an adjustment for expenses that are not deductible for tax purposes; and (3) a tax benefit shortfall associated with share-based awards. The income tax rate has been trending down as expenses not deductible for tax purposes have decreased due to the issuance to senior management of a higher percentage of awards that were market based. Effective during the second half of 2015, the estimated annual income tax rate increased due to the impact of acquisitions on the Company’s state income apportionments to states with higher income tax rates. This increase was offset by a discrete state income tax credit due to recent legislation that allowed for the release of a partial valuation allowan ce in a certain single member state. For 2014 T he effective income tax rate was 42.6%. This rate was higher t han the federal statutory rate of 35% primarily due to the combination of: (1) an increase in net d eferred tax liabilities associated with non-amortizable assets such as broadcasting licenses and goodwill; (2) an adjustment for expenses that are not deductible for tax purposes; and (3) a tax benefit shortfall associated with share-based awards. In addi tion, the Company recorded a discrete tax benefit from legislatively reduced income tax rates in certain states. For 2013 T he effective income tax rate was 46.3%. This rate was higher t han the federal statutory rate of 35% primarily due to the combination of: (1) an increase in net deferred tax liabilities associated with non-amortizable assets such as broadcasting licenses and goodwill; (2) an adjustment for expenses that are not deductible for tax purposes; a nd (3) a tax benefit shortfall associated with share-based awards. Income Tax Expense Income tax expense (benefit) for each year is summarized as follows:
|  |  |  |  | Years Ended December 31,
|  |  |  |  | 2015 |  | 2014 |  | 2013
| Current: |  |  |  |  |  |  |  |  |
|  | Federal |  | $ | 25 |  | $ | - |  | $ | -
|  | State |  |  | 90 |  |  | 100 |  |  | 54
|  |  | Total current |  |  | 115 |  |  | 100 |  |  | 54
| Deferred: |  |  |  |  |  |  |  |  |
|  | Federal |  |  | 17,042 |  |  | 17,373 |  |  | 19,051
|  | State |  |  | 1,280 |  |  | 2,438 |  |  | 3,371
|  |  | Total deferred |  |  | 18,322 |  |  | 19,811 |  |  | 22,422
Total income taxes (benefit) |  | $ | 18,437 |  | $ | 19,911 |  | $ | 22,476
Deferred Tax Assets And Deferred Tax Liabilities The income tax accounting process to determine the Company’s deferred tax assets and liabilities involves estimating all temporary differences between the tax and financial reporting bases of the Company’s assets and liabilities based on tax laws and statutory tax rates applicable to the period in which the differences are expected to affect taxable income. These estimates include assessing the likely future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. C hanges to the se estimates could have a future impact on the Company’s financial positio n or results of operations. The tax effects of significant temporary differences that comprise the net deferred tax assets and liabilities are as follows:
|  |  |  |  | December 31,
|  |  |  |  | 2015 |  | 2014
|  |  |  |  | (amounts in thousands)
Deferred tax assets: |  |  |  |  |  |
| Employee benefits |  | $ | 783 |  | $ | 678
| Deferred compensation |  |  | 988 |  |  | 588
| Provision for doubtful accounts |  |  | 835 |  |  | 959
| Deferred gain on tower transaction |  |  | 235 |  |  | 236
| Other |  |  | 987 |  |  | 505
| Total current deferred tax assets before valuation allowance |  |  | 3,828 |  |  | 2,966
| Valuation allowance |  |  | (231) |  |  | (620)
| Total current deferred tax assets - net |  |  | 3,597 |  |  | 2,346
| Federal and state income tax loss carryforwards |  |  | 129,944 |  |  | 130,074
| Share-based compensation |  |  | 3,218 |  |  | 2,648
| Investments - impairments |  |  | 499 |  |  | 498
| Lease rental obligations |  |  | 3,440 |  |  | 2,289
| Deferred compensation |  |  | 3,968 |  |  | 4,322
| Deferred gain on tower transaction |  |  | 3,039 |  |  | 3,281
| Other non-current |  |  | 1,014 |  |  | 1,154
| Total non-current deferred tax assets before valuation allowance |  |  | 145,122 |  |  | 144,266
| Valuation allowance |  |  | (20,407) |  |  | (20,146)
| Total non-current deferred tax assets - net |  |  | 124,715 |  |  | 124,120
| Total deferred tax assets |  | $ | 128,312 |  | $ | 126,466
Deferred tax liabilities: |  |  |  |  |  |
| Advertiser broadcasting obligations |  | $ | (133) |  | $ | (98)
| Total current deferred tax liabilities |  |  | (133) |  |  | (98)
| Deferral of gain recognition on the extinguishment of debt |  |  | (4,568) |  |  | (6,119)
| Property, equipment and certain intangibles (other |  |  |  |  |  |
|  | than broadcasting licenses and goodwill) |  |  | 4,804 |  |  | 5,579
| Broadcasting licenses and goodwill |  |  | (206,594) |  |  | (187,050)
| Total non-current deferred tax liabilities |  |  | (206,358) |  |  | (187,590)
| Total deferred tax liabilities |  | $ | (206,491) |  | $ | (187,688)
| Total net deferred tax liabilities |  | $ | (78,179) |  | $ | (61,222)
Valuation Allowance For Deferred T a x Assets Judgment is required in estimating valuation allowances for deferred tax assets. Deferred tax assets are reduced by a valuation allowance if an assessment of their components indicates that it is more likely than not that all or some portion of these asset s will not be realized. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in the carryforward periods under tax law. The Company periodically assess es the need for valuation allowances for deferred tax assets based on more-likely-than-not realization threshold criteria. In the Company’s assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, am ong other matters, forecasts of future profitability, the duration of statutory carryforward periods and any ownership change limitations under Internal Revenue Code Section 382 o n the Company’s future income that can be used to offset historic losses. As changes occur in the Company’s assessments regarding its ability to recover its deferred tax assets, the Company’s tax provision is increased in any period in which the Company determines that the recovery is not probable. The following table presents the changes in the deferred tax asset valuation allowance for the periods indicated:
|  |  |  |  | Increase |  | Increase |  |  |
|  |  |  |  | (Decrease) |  | (Decrease) |  |  |
|  |  |  |  | Charged |  | Charged |  |  |
|  |  |  |  | (Credited) |  | (Credited) |  |  |
|  | Balance At |  | To Income |  | To |  | Balance At
|  | Beginning |  | Taxes |  | Balance |  | End Of
Year Ended |  | Of Year |  | (Benefit) |  | Sheet |  | Year
|  |  | (amounts in thousands)
December 31, 2015 |  | $ | 20,766 |  | $ | (165) |  | $ | 37 |  | $ | 20,638
December 31, 2014 |  |  | 20,238 |  |  | 528 |  |  | - |  |  | 20,766
December 31, 2013 |  |  | 18,333 |  |  | 1,905 |  |  | - |  |  | 20,238
Liabilities For Uncertain Tax Positions The Company recognizes liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to estimate the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis. Changes in assumptions may result in the recognition of a tax benefit or an additional charge to the tax provision. The Company classifies interest and penalties that are related to income tax liabilities as a component of income tax expense. T he income tax liabilities and accrued interest and penalties are presented as non-current liabilities, as payments are not anticipated within one year of the balance sheet date. These non-current income tax liabilities are recorded in other long-term liabilities in the consolidated balance sheets. The Company’s liabilities for uncertai n tax positions are reflected in the following table:
|  |  | December 31,
|  |  | 2015 |  | 2014
|  |  | (amounts in thousands)
Liabilities for uncertain tax positions |  |  |  |  |  |
| Tax |  | $ | 67 |  | $ | 67
| Interest and penalties |  |  | 170 |  |  | 150
| Total |  | $ | 237 |  | $ | 217
The amounts for interest and penalties expense reflected in the statements of operations were eliminated in the statements of cash flows under net deferred taxes (benefit) and other as no cash payments were made during these periods. The follo wing table presents the expense (income) for uncertain tax positions, which amounts were reflected in the consolidated statements of operations as an increase (decrease) to income tax expense:
|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013
|  | (amounts in thousands)
Interest and penalties (income) |  |  | 20 |  |  | 18 |  |  | 11
Total income taxes (benefit) |  |  |  |  |  |  |  |  |
from uncertain tax positions |  | $ | 20 |  | $ | 18 |  | $ | 11
The increa se in liabilities for uncertain tax positions for 2015 primarily reflects the addition of interest related to existing uncertain tax positions. The following table presents the gross amount of changes in unrecognized tax benefits:
|  |  | Years Ended December 31,
|  |  | 2015 |  | 2014 |  | 2013
|  |  | (amounts in thousands)
Beginning of year balance |  | $ | (7,690) |  | $ | (7,690) |  | $ | (7,690)
Prior year positions |  |  |  |  |  |  |  |  |
| Gross Increases |  |  | - |  |  | - |  |  | -
| Gross Decreases |  |  | - |  |  | - |  |  | -
Current year positions |  |  |  |  |  |  |  |  |
| Gross Increases |  |  | - |  |  | - |  |  | -
| Gross Decreases |  |  | - |  |  | - |  |  | -
Settlements with tax authorities |  |  | - |  |  | - |  |  | -
Reductions due to statute lapse |  |  | - |  |  | - |  |  | -
End of year balance |  | $ | (7,690) |  | $ | (7,690) |  | $ | (7,690)
Ending liability balance included above that was |  |  |  |  |  |  |  |  |
| reflected as an offset to deferred tax assets |  | $ | (7,623) |  | $ | (7,623) |  | $ | (7,623)
The gross amount of the Company’s unrecognized tax benefits is reflected in the above table which, if recognized, would impact the Company’s effective income tax rate in the period of recognition. The total amount of unrecognized tax benefits could increas e or decrease within the next 12 months for a number of reasons including the expiration of statutes of limitations, audit settlements and tax examination activities. As of December 31, 2015, there were no significant unrecognized net tax benefits (exclusive of interest and penalties) that over the next 12 months are subject to the expiration of various statutes of limitation. Interest and penalties accrued on uncertain tax positions are released upon the expiration of statutes of limitations. Federal And State Income Tax Audits The Company is subject to federal and state income tax audits from time to time that could result in proposed assessments. Management believes that the Company has made sufficient tax provisions for tax periods that are within the statutory period of limitations not previously audited and that are potentially open for examination by the taxing authorities. Potential liabilities associated with these years will be resolved when an event occurs to warrant closure, prima rily through the completion of audits by the taxing jurisdictions, or if the statute of limitations expires. To the extent audits or other events result in a material adjustment to the accrued estimates, the effect would be recognized during the period of the event. There can be no assurance, however, that the ultimate outcome of audits will not have a material adverse impact on the Company’s financial position, results of operations or cash flows. The Company cannot predict with certainty how these audits will be resolved and whether the Company will be required to make additional tax payments, which may include penalties and interest. During 2010, the Company concluded an audit by the IRS with no proposed adjustment for the tax years of 2004 through 2008. For most states where the Company conducts business, the Company is subject to examination for the preceding three to six years. In certain states, the period could be longer. Income Tax Payments, Refunds And Credits The Company accrued a $0.1 million Alternative Minimum Tax (“AMT”) associated with expected income subject to tax for 2015, before the offset of available net operating loss carryforwards (“NOLs”). The AMT is available to be carried forward indefinitely to be used as a credit to offset future income tax liabilities. The following table provides the amount of income tax payments and income tax refunds for the periods indicated:
|  |  | Years Ended December 31,
|  |  | 2015 |  | 2014 |  | 2013
|  |  | (amounts in thousands)
State income tax payments |  | $ | 81 |  | $ | 79 |  | $ | 69
Federal and state income tax refunds |  | $ | - |  | $ | 10 |  | $ | 5
Net Operating Loss Carryforwards The Company has recorded a valuation allowance for certain of its state NOLs as the Company does not expect to obtain a benefit in future periods. In addition, u tilization in future years of the NOL carryforwards may be subject to limitations due to the changes in ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. W indfall tax benefits will be recognized for book purposes and recorded to paid-in capital only when realized. The Company does not recognize a deferred tax asset for unrealized tax benefits associated with the tax deductions in excess of the compensation recorded (excess tax benefit). The Company applies the “with and without” approach for utilization of tax attributes upon realization of NOLs in the future. This method allocates stock-based compensation benefits last among other tax benefits recognized. The NOLs reflected in the following table exclud e these windfall stock compensation deductions. In addition, the NOLs reflect an estimate of the NOLs for the 201 5 tax filing year as these returns will not be filed until later in 201 6:
|  | Net Operating Losses
|  | December 31, 2015
|  |  |  | Suspended |  |  |  |
|  | NOLs |  | Windfall |  | NOL Expiration Period
|  | (amounts in thousands) |  | (in years)
Federal NOL carryforwards |  | $ | 292,800 |  | $ | 10,799 |  | 2030 | to | 2035
State NOL carryforwards |  | $ | 614,834 |  | $ | 8,806 |  | 2016 | to | 2034
State income tax credit |  | $ | 1,248 |  |  |  |  |  | to | 2018

X
- References No definition available. + 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 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration