Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

For the years ended December 31, 2014, 2013 and 2012, the income tax provision was comprised of the following:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Current:
Federal	$	8,073	$	2,912	$	316
State		7,610		3,056		132
Foreign		426		468		365
Total current		16,109		6,436		813
Deferred:
Federal		1,056		1,300		—
State		3,556		406		—
Total deferred		4,612		1,706		—
Total income tax expense	$	20,721	$	8,142	$	813

Income Before Provision for Income Taxes

Income before provision for income taxes for the years ended December 31, 2014, 2013 and 2012, was as follows:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Domestic source	$	43,069	$	12,986	$	7,153
Foreign source		1,915		1,903		1,579
Income before provision for income taxes	$	44,984	$	14,889	$	8,732

Reconciliation of Income Taxes Computed at U.S. Federal Statutory Rate to Income Taxes

The following is a reconciliation of income taxes computed at the U.S. federal statutory rate to the income taxes reported in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Income tax expense at statutory rate	$	15,747		$	5,211		$	3,056
State income taxes		8,038			2,522			251
Deferred tax impact of reorganization		(2,382	)		—			—
Nondeductible transaction costs		—			1,148			—
Tax benefit of partnership status		—			(726	)		(2,211	)
Valuation allowance reversal		—			(502	)		—
Foreign rate differential		(253	)		(220	)		(188	)
All other		(429	)		709			(95	)
Total income tax expense	$	20,721		$	8,142		$	813

Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences giving rise to deferred income tax assets and liabilities as of December 31, 2014 and 2013 were as follows:

	As of December 31,
	2014			2013
	(in thousands)
Deferred tax assets:
Loss and credit carryforwards	$	7,212		$	16,606
Accrued expenses		2,221			620
Stock-based compensation		7,752			5,200
Total deferred tax assets		17,185			22,426
Valuation allowance		(910	)		(902	)
Net deferred tax assets		16,275			21,524
Deferred tax liabilities:
Fixed assets		(2,721	)		(1,145	)
Intangible assets		(104,973	)		(105,435	)
Investment in partnership		—			(1,751	)
Total deferred tax liabilities		(107,694	)		(108,331	)
Net deferred tax liability	$	(91,419	)	$	(86,807	)

Classification of net deferred tax assets (liabilities) on the consolidated balance sheets as of December 31, 2014 and 2013 was as follows:

	As of December 31,
	2014			2013
	(in thousands)
Current assets	$	825		$	3,688
Non-current liabilities		(92,244	)		(90,495	)
Total deferred tax liability	$	(91,419	)	$	(86,807	)

Credit Carryforwards

The Company had the following tax loss and credit carryforwards as of December 31, 2014 and 2013:

	2014		2013		Beginning Year of Expiration
	(in thousands)
U.S. federal loss carryforwards	$	7,706	$	34,297	2027
U.S. state and local loss carryforwards		9,856		36,201	2027
U.S. contribution carryforwards		166		85	2015
Illinois Edge Credits_(a)		2,938		1,654	2017
New York unincorporated business tax credits_(a)		875		—	2021
U.S. research and development credits		—		53	2031
U.S. Alternative Minimum Tax Credit carryover		—		240	No expiration

(a)	Amounts are before the federal benefit of state tax

Unrecognized Tax Benefit Activity Excluding Related Accrual for Interest

The following table summarizes the Company’s unrecognized tax benefit activity during the years ended December 31, 2014 and 2013, excluding the related accrual for interest:

	As of December 31,
	2014			2013
	(in thousands)
Balance at beginning of year	$	1,097		$	—
Reductions for tax positions of prior years		(491	)		—
Additions for tax positions of prior years		50			166
Additions for tax positions of the current year		2,532			931
Balance at end of year	$	3,188		$	1,097