INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13— INCOME TAXES

The Company’s provision (benefit) for income taxes consists of the following for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
	2015		2014			2013
Current:
Federal	$	201	$	-		$	-
State		99		98			2
Foreign		779		-			(287	)
Total current provision		1,079		98			(285	)
Deferred:
Federal		5,166		(2,503	)		791
State		1,443		(481	)		198
Foreign		-		-			-
Total deferred		6,609		(2,984	)		989
Total provision for income taxes	$	7,688	$	(2,886	)	$	704

A reconciliation of the federal statutory rate of 34% to the effective tax rate for income (loss) before income taxes is as follows for the year ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
	2015			2014			2013
Provision for income taxes at federal statutory rate		34.0	%		(34.0	)%		34.0	%
State income taxes, net of federal benefit		4.0			(3.7	)		8.7
Foreign tax differential		-			-			9.0
Other		(1.8	)		4.5			3.3
Effective income tax rate		36.2	%		(33.2	)%		55.0	%

Deferred income tax assets (liabilities) consisted of the following as of December 31, 2015 and 2014:

	December 31,
	2015		2014
Deferred tax assets:
Allowance for doubtful accounts	$	160	$	282
Goods held for sale or auction		692		2,819
Deductible goodwill and other intangibles		9,848		9,988
Accrued liabilities and other		1,177		3,210
Mandatorily redeemable noncontrolling interests		768		740
Foreign tax and other tax credit carryforwards		1,427		342
Net operating loss carryforward		4,920		8,220
Total gross deferred tax assets	$	18,992	$	25,601

The Company's income before income taxes of $21,265 for the year ended December 31, 2015 includes a United States component of income before income taxes of $18,642 and a foreign component comprised of income before income taxes of $2,623. As of December 31, 2015, the Company had federal net operating loss carryforwards of $12,023, state net operating loss carryforwards of $13,886, and foreign tax credit carryforwards of $1,121. The Company’s federal net operating loss carryforwards will expire in the tax year ending December 31, 2030, the state net operating loss carryforwards will expire in 2032, and the foreign tax credit carryforwards will expire in 2022.

The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits of operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. As a result of the common stock offering that was completed on June 5, 2014, the Company had a more than 50% ownership shift in accordance with Internal Revenue Code Section 382. Accordingly, the Company is limited to the amount of net operating loss that may be utilized in future taxable years depending on the Company’s actual taxable income. As of December 31, 2015, the Company believes that the net operating loss that existed as of the more than 50% ownership shift will be utilized in future tax periods before the loss carryforwards expire and it is more-likely-than-not that future taxable earnings will be sufficient to realize its deferred tax assets and has not provided an allowance.

On January 1, 2009, the Company adopted the accounting guidance for accounting for uncertainty in income taxes. This accounting guidance addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under the accounting guidance, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company did not recognize any additional liabilities for uncertain tax positions as a result of the implementation of this accounting guidance.

The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the calendar years ended December 31, 2011 to 2015. The Company and its subsidiaries’ state tax returns are also open to audit under similar statutes of limitations for the same tax years. The Company accrues interest on unrecognized tax benefits as a component of income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. The Company had no such accrued interest or penalties included in the accrued liabilities associated with unrecognized tax benefits as of the date of adoption.