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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Taxes  
Income Taxes

 

11. Income Taxes

 

For the three and nine months ended September 30, 2015, the Company recorded an expense for income taxes of approximately $0.1 million and $0.5 million, respectively, consisting primarily of foreign and state income taxes. The provision for income taxes for each of the three and nine months ended September 30, 2014 was approximately $0.1 million, consisting primarily of foreign and state income taxes.

 

For the three and nine months ended September 30, 2015 and 2014, the provision for income taxes differed from the statutory amount primarily due to the Company realizing no benefit for current year losses and maintaining a full valuation allowance against the U.S. and certain foreign net deferred tax assets, while recognizing state and foreign taxes currently payable.

 

The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the U.S. Federal, state, and certain foreign net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the domestic net deferred tax assets and certain foreign jurisdictions with net deferred tax assets as of September 30, 2015 and December 31, 2014. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three and nine months ended September 30, 2015, there have been no material changes to the total amount of unrecognized tax benefits.

 

At September 30, 2015, the Company had $1.2 million of unrecognized tax benefits, none of which would affect the effective tax rate, as all of the unrecognized tax benefit is recorded as a reduction to deferred tax assets which are currently offset by a valuation allowance.  To date, the Company has not recognized any interest or penalties related to uncertain tax positions as part of the income tax provision.