Note 20 - Income Taxes

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

20. Income Taxes

We account for income taxes in accordance with ASC Topic 740,

Income Taxes

("ASC 740"). ASC 740 requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. Changes to enacted tax rates could materially impact the value of our deferred tax asset.

Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our prior and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods, our utilization experience with operating loss and tax credit carryforwards, and tax planning alternatives.

Our 2016 first quarter provision for income taxes of $42.5 million primarily related to our $115.2 million of pretax income. As of March 31, 2016, we had a $350.6 million deferred tax asset which was partially offset by a valuation allowance of $1.4 million related to state net operating loss carryforwards that are limited by shorter carryforward periods. As of such date, $139.9 million of our deferred tax asset related to net operating loss carryforwards ($106.3 million of federal and state net operating loss carryforwards that were subject to the Internal Revenue Code Section 382 (“Section 382”) gross annual limitation of $15.6 million for both federal and state purposes, and $33.6 million of state net operating loss carryforwards that were not subject to such limitation). The remaining deferred tax asset balance of $210.7 million represented deductible timing differences, primarily related to inventory impairments and financial accruals, which have no expiration date. As of March 31, 2016 and December 31, 2015, our liability for unrecognized tax benefits was $12.7 million and $10.6 million, respectively, which is included in accrued liabilities in the accompanying condensed consolidated balance sheets. In addition, as of March 31, 2016, we remained subject to examination by various tax jurisdictions for the tax years ended December 31, 2011 through 2015.