Note 20. Income Taxes

The following table presents the loss before income taxes for the periods presented (in thousands):

	For the year ended December 31,
	2015		2014		2013
Loss attributable to common stockholders	$	33,545	$	80,895	$	1,792
Loss attributable to noncontrolling interest and redeemable noncontrolling interests		220,660		86,638		64,294
Total	$	254,205	$	167,533	$	66,086

The income tax provision (benefit) consists of the following (in thousands):

	For the year ended December 31,
	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State		—			—			169
Total current expense		—			—			169
Deferred:
Federal		(7,516	)		(8,196	)		(1,114	)
State		2,217			(1,847	)		354
Total deferred provision		(5,299	)		(10,043	)		(760	)
Total	$	(5,299	)	$	(10,043	)	$	(591	)

The following table represents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented:

	For the year ended December 31,
	2015			2014			2013
Tax provision (benefit) at federal statutory rate		(34.00	)%		(34.00	)%		(34.00	)%
State income taxes, net of federal benefit		0.87			(1.10	)		0.79
Effect of noncontrolling and redeemable noncontrolling interests		29.53			17.59			34.10
Stock-based compensation		1.06			1.37			0.94
Effect of prepaid tax asset		0.04			9.39			—
Tax credits		(0.43	)		(0.22	)		(2.16	)
Other		0.85			0.98			(0.56	)
Total		(2.08	)%		(5.99	)%		(0.89	)%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table represents significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands):

	December 31,
	2015			2014
Deferred tax assets:
Accruals and prepaids	$	12,904		$	4,302
Deferred revenue		34,710			44,359
Net operating loss carryforwards		229,464			176,555
Stock-based Compensation		3,748			1,612
Investment tax and other credits		11,261			7,369
Gross deferred tax assets		292,087			234,197
Deferred tax liabilities:
Capitalized initial direct costs		27,539			16,640
Fixed asset depreciation		178,511			142,866
Deferred tax on investment in partnerships		276,183			184,240
Gross deferred tax liabilities		482,233			343,746
Net deferred tax liabilities	$	(190,146	)	$	(109,549	)

An analysis of deferred tax liabilities is as follows (in thousands):

	December 31,
	2015			2014
Deferred tax assets	$	292,087		$	234,197
Deferred tax liabilities		(482,233	)		(343,746	)
Net deferred tax liabilities	$	(190,146	)	$	(109,549	)

As of December 31, 2015, the Company had net operating loss carryforwards for federal, California and other state income tax purposes of approximately $595.0 million, $368.0 million and $178.6 million, respectively, which will begin to expire in the year 2028, 2020 and 2020, respectively, if not utilized. Of the federal, California, and other state NOL carryover, $5.3 million, $1.3 million and $2.5 million relates to windfall stock option deductions which, when realized, will be an increase to additional paid in capital. As of December 31, 2014, the Company had net operating loss carryforwards for federal, California and other state income tax purposes of approximately $454.5 million, $283.1 million and $126.5 million, respectively. Of the federal, California, and other state NOL carryover, $1.8 million, $1.1 million and $0.5 million relates to windfall stock option deductions which, when realized, will be an increase to additional paid in capital.

As of December 31, 2015, the Company has an investment tax credit carryforward of approximately $4.2 million and California enterprise zone credits of approximately $1.0 million, which begins to expire in the year 2028 and 2023, respectively, if not utilized. As of December 31, 2014, the Company has an investment tax credit carryforward of approximately $2.4 million and California enterprise zone credits of approximately $0.9 million.

Generally, utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal revenue Code (IRC) of 1986, as amended and similar state provisions. The Company performed an analysis to determine whether an ownership change under Section 382 of the Code had occurred and determined that no ownership changes were identified as of December 31, 2015.

Valuation allowances are provided against deferred tax assets to the extent that it is more likely than not that the deferred tax asset will not be realized. The Company’s management considers all available positive and negative evidence including its history of operating income or losses, future reversals of existing taxable temporary difference, taxable income in carryback years and tax-planning strategies. The Company has concluded there was sufficient positive evidence based on the reversal pattern of the deferred tax liability and available tax planning strategies being relied upon at the end of December 31, 2015 and December 31, 2014 to support the position that the Company does not need to maintain a valuation allowance on deferred tax assets.

Uncertain Tax Positions

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal, state and local jurisdictions, where applicable. The statute of limitations for the tax returns varies by jurisdictions.

We determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. We use a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. We have analyzed the Company’s inventory of tax positions with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction).

Our policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations. The Company does not have any tax positions for which it is reasonably possible that the total amount of gross unrecognized tax benefits will significantly change within 12 months of December 31, 2015.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2014 and December 31, 2014	$	—
Acquired from CEE		1,525
Balance at December 31, 2015	$	1,525

There was 0.3 million of interest and penalties for uncertain tax positions as of December 31, 2015. As of December 31, 2014, there was no unrecognized tax benefits and there were no interest and penalties accrued for any uncertain tax position.

Three of our investment funds are currently being audited by the IRS. The Company is subject to taxation in the U.S., and various state and local jurisdictions. The following table summarizes the tax years that remain open and subject to examination by the tax authorities in the most significant jurisdictions in which the Company operates:

		Tax Years
U.S. Federal		2011 - 2015
State		2010 - 2015