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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2014
Income Taxes [Abstract]  
Components of income tax expense (benefit)
The components of income tax expense (benefit) are as follows:

(in thousands)
 
Year Ended December 31, 2014
  
Year Ended December 31, 2013
 
Federal - current
 
$
(19,179
)
 
$
750
 
State - current
  
(16,683
)
  
1,394
 
Total current
  
(35,862
)
  
2,144
 
Federal - deferred
  
(10,200
)
  
(1,270
)
State - deferred
  
(324
)
  
(165,000
)
Change in valuation allowance
  
10,524
   
1,435
 
Total deferred
  
-
   
-
 
Income tax expense (benefit)
 
$
(35,862
)
 
$
2,144
 
Income tax reconciliation
The components of pretax income (loss) and the difference between income taxes computed at the statutory federal rate and the provision for income taxes are as follows:

(in thousands)
 
Year Ended
December 31,
2014
  
Year Ended
December 31,
2013
 
     
Income (loss) before income taxes
 
$
(21,441
)
)
 
$
(3,874
)
)
Tax expense (benefit) :
        
Tax at statutory federal rate
 
$
(7,504
)
)
 
$
(1,356
)
)
State income taxes
  
183
   
256
 
Federal uncertain tax position reversal
  
(19,179
)
)
  
-
 
State uncertain tax position reversal
  
(16,866
)
)
  
-
 
Federal interest
  
-
   
750
 
State interest
  
-
   
1,138
 
Permanent items
  
(3,020
)
  
(79
)
)
Other
  
-
   
-
 
Change in valuation allowance
  
10,524
   
1,435
 
Income tax expense (benefit)
 
$
(35,862
)
)
 
$
2,144
 

A reconciliation of the United States federal statutory rate to the Company's effective income tax rate is as follows:

  
Year Ended
December 31,
2014
    
Year Ended
December 31,
2013
  
Tax at statutory federal rate
 
35.0
 
%
  
35.0
 
%
State income taxes
 
(0.9)
)
   
(6.6)
)
 
Federal uncertain tax position reversal
 
89.5
    
-
  
State uncertain tax position reversal
 
78.7
    
-
  
Federal interest
 
-
    
(19.4)
)
 
State interest
 
-
    
(29.4)
)
 
Permanent difference, tax credits and other adjustments
 
14.1
    
2.1
  
Other
 
-
    
-
  
Change in valuation allowance
 
(49.1)
)
   
(37.0)
)
 
Effective income tax rate
 
167.3
 
%
  
(55.3)
)
%
Net deferred tax asset
The Carteret Tax Basis and federal NOL carryforward deductions utilized as part of the Company's 2012 federal income tax return as filed were as follows:

 
(in thousands)
  
Carteret Tax Basis
 
$
152,000
 
Federal NOL carryforwards utilized
 
$
25,000
 
Calculation of net federal uncertain tax position reserve
A roll forward of the uncertain tax positions reserve, excluding accrued federal and state interest is as follows:

 
(in thousands)
 
December 31, 2014
  
December 31, 2013
 
Uncertain tax position reserve excluding accrued interest, at beginning of period
 
$
34,157
  
$
34,157
 
Federal uncertain tax position reserve excluding accrued interest
  
(18,429
)
  
-
 
State uncertain tax position reserve excluding accrued interest
  
(15,728
)
  
-
 
Uncertain tax position reserve excluding accrued interest, at end of period
 
$
-
  
$
34,157
 
Uncertain tax positions tax reserve
The Company's uncertain tax positions tax reserve, including accrued interest is as follows:

 
(in thousands)
 
December 31, 2014
  
December 31, 2013
 
Federal uncertain tax positions reserve, including accrued federal interest
 
$
-
  
$
19,179
 
State uncertain tax positions reserve, including accrued state interest
  
-
   
16,866
 
Total uncertain tax positions reserve, including accrued federal and state interest
 
$
-
  
$
36,045
 
Interest expense related to the uncertain tax positions
The interest expense related to the uncertain tax positions is as follows:

(in thousands)
 
Year Ended December 31, 2014
  
Year Ended December 31, 2013
 
Federal
 
$
-
  
$
750
 
State jurisdictions
  
-
   
1,138
 
 
        
Interest expense - taxes
 
$
-
  
$
1,888
 
Indemnification asset
The Company's indemnification asset which reflects the potential amounts reimbursable pursuant to the tax gross-up provision of the Settlement Agreement for the federal uncertain tax position reserve recognized, is as follows:

 
(in thousands)
December 31, 2014
 
December 31, 2013
 
Indemnification asset – federal tax gross-up
 
$
-
  
$
18,429
 
Federal net operating loss carryforwards
The federal NOL carryforwards as of December 31, 2014 are as follows:

Tax Year
Originating
Tax Year
Expiring
 
Amount
 
    
2006
2026
 
$
500,000
 
2007
2027
  
12,700,000
 
2008
2028
  
4,600,000
 
2009
2029
  
2,400,000
 
2010
2030
  
1,900,000
 
2011
2031
  
1,900,000
 
2013
2033
  
3,700,000
 
2014
2034
  
4,900,000
 
    
$
32,600,000
 
Alternate minimum tax credit carryforwards
In addition, the Company has alternate minimum tax credit carryforwards ("AMT Credits"), which are not subject to expiration, as follows:

  
Amount
 
AMT Credits
 
$
21,000,000
 
State net operating loss carryforwards
The state NOL carryforwards as of December 31, 2014 are as follows:

Tax Year
Originating
Tax Year
Expiring
 
Amount
 
    
2011
2031
 
$
1,900,000
 
2013
2033
  
3,400,000
 
2014
2034
  
4,700,000
 
    
$
10,000,000
 
Calculation of net deferred tax assets from NOL carryforwards
The Company has calculated a net deferred tax asset arising primarily from NOL carryforwards as follows.

 
 
December 31, 2014
  
December 31, 2013
 
Net deferred tax asset
 
$
11,900,000
  
$
1,400,000
 
Valuation allowance
  
(11,900,000
)
  
(1,400,000
)
Net deferred tax asset recognized
 
$
-
  
$
-