INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of Components of Income Tax Expense (Benefit)

Our total provision/(benefit) from income taxes consists of the following for the years ended December 31, 2015, 2014, and 2013:

(in thousands)	2015		2014		2013
Current income tax provision/(benefit):
Federal	$	7,264	$	4,034	$	20
State		611		273		-
Total		7,875		4,307		20
Deferred income tax (benefit)/provision:
Federal		(1,468)		2,113		635
State		(409)		154		(221)
Total		(1,877)		2,267		414
Change in valuation allowance		-		(16,726)		(414)
Excess tax benefit from stock-based compensation awards		360		784		-
Tax provision/(benefit) from continuing operations		6,358		(9,368)		20
Tax provision from discontinued operation		-		-		38
Total provision/(benefit) for income taxes	$	6,358	$	(9,368)	$	58

Schedule of Effective Income Tax Rate Reconciliation

The difference between our expected income tax provision/(benefit) from applying federal statutory tax rates to the pre-tax income/(loss) from continuing operations and actual income tax provision/(benefit) from continuing operations relates primarily to the effect of the following:

	As of December 31,
	2015			2014			2013
US Federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal benefit		2.1	%		1.0	%		1.0	%
Non-deductible expenses		0.1	%		-	%		245.9	%
Domestic production activities deduction		(5.3)	%		-	%		-	%
Change in valuation allowance		-	%		(86.5)	%		(300.4)	%
Change in tax rates and other		(1.6)	%		(1.2)	%		34.6	%
Stock-based compensation – windfall tax benefits		1.7	%		4.0	%		-	%
Other		(2.7)	%		(0.7)	%		-	%
Total income tax provision/(benefit)		29.3	%		(48.4)	%		16.1	%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Our deferred income tax assets and liabilities consisted of the following:

(in thousands)	As of December 31,
	2015		2014
Deferred tax assets:
Accruals and advances	$	2,153	$	2,149
Bond hedge		12,243		12,677
Accruals for chargebacks and returns		2,945		1,107
Inventory		1,271		618
Intangible Asset		504		-
Net operating loss carryforward		7,938		11,798
Other		1,149		674
Total deferred tax assets	$	28,203	$	29,023
Deferred tax liabilities:
Depreciation	$	(700)	$	(587)
Debt discount		(10,029)		(11,892)
Intangible assets		-		(467)
Other		(16)		(496)
Total deferred tax liabilities	$	(10,745)	$	(13,442)
Valuation allowance		(142)		(142)
Total deferred tax asset, net	$	17,316	$	15,439