INCOME TAXES

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company is subject to federal and state income taxes in the United States. Additionally, as a result of business combinations completed in 2014 the Company has been subject to foreign income taxes in the United Kingdom since the date of the acquisitions. At December 31, 2015, the Company had net operating loss (“NOL”) carryforwards for Federal income tax purposes of approximately $123,000. These NOL carryforwards can be utilized to offset future taxable income that may be generated in the Company’s continuing business activities. If not previously utilized, the NOL carryforwards will expire primarily in 2033 through 2035. Additionally, as of December 31, 2015, the Company had approximately $3,000 of foreign tax credits that may be applied to reduce future U.S. Federal income tax liabilities. These foreign tax credits expire in 2024 if not utilized.

For the three months ended March 31, 2016 and 2015, the Company did not recognize any income tax benefit or expense for operations in the U.S. A valuation allowance has been provided for all U.S. based net deferred tax assets, including the Federal NOL and foreign tax credits discussed above, since the “more likely than not” realization criteria was not met as of March 31, 2016 and 2015. For the three months ended March 31, 2016 and 2015, the Company recognized U.K. based income tax expense of $191 and $252, respectively. Accordingly, all of the Company’s income tax expense is associated with foreign income taxes on U.K. earnings. The Company’s effective income tax rate on U.K. earnings was 23% for the three months ended March 31, 2016. As of March 31, 2016, gross unrecognized tax benefits are immaterial and there was no change in such benefits during the three months ended March 31, 2016. The Company does not expect a significant increase or decrease to the uncertain tax positions within the next twelve months.