XML 19 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company records income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the tax rates and laws expected to be in effect when the differences are expected to reverse.

For the three and nine months ended September 30, 2017, there was no income tax benefit due to net operating loss carryforwards and the Company recorded a full valuation allowance against its net deferred taxes.
 
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2017, the Company did not have any accrued interest or penalties related to uncertain tax positions. The tax years 2012 through 2016 remain open to examination by the tax jurisdictions to which the Company is subject.
 
At December 31, 2016, the Company had, subject to the limitation discussed below, $233.6 million of net operating loss carryforwards for U.S. tax purposes.  The loss carryforward will expire in varying amounts through 2036, if not utilized.

Uncertainties exist as to the future utilization of the operating loss carryforwards. Therefore, the Company has established a valuation allowance of $137.8 million for deferred tax assets at December 31, 2016.