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Income Taxes Disclosure - Income Taxes from Continuing Operations (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign

The components of income from continuing operations before income taxes were as follows:



	Year Ended December 31,
Dollars in thousands	2014		2013		2012
U.S. operations	$	188,473	$	259,057	$	263,730
Foreign operations	2,368		3,341		2,784
Total income from continuing operations before income taxes	$	190,841	$	262,398	$	266,514

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense from continuing operations were as follows:



	Year Ended December 31,
Dollars in thousands	2014			2013			2012
Current:
U.S. Federal	$	69,117		$	38,876		$	—
State and local	12,294			10,104			4,142
Foreign	415			(424		)	7
Total current	81,826			48,556			4,149
Deferred:
U.S. Federal	(16,232		)	(3,642		)	87,715
State and local	427			(5,653		)	8,002
Foreign	143			449			345
Total deferred	(15,662		)	(8,846		)	96,062
Total income tax expense	$	66,164		$	39,710		$	100,211

Schedule of Effective Income Tax Rate Reconciliation

Rate Reconciliation

The income tax expense differs from the amount that would result by applying the U.S. statutory rate to income before income taxes as follows:



	Year Ended December 31,
	2014		2013		2012
U.S Federal tax expense at statutory rates	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	4.1		3.9		3.9
Federal and state credits	(1.1	)	(0.9	)	(0.8	)
Domestic production activities deduction	(3.6	)	(0.6	)	—
Recognition of outside basis differences	(1.1	)	(15.4	)	—
ecoATM option payments	1.4		0.7		—
Valuation allowance	—		2.3		—
Acquisition of ecoATM	—		(9.3	)	—
Other	—		(0.6	)	(0.5	)
Effective tax rate	34.7	%	15.1	%	37.6	%

Summary of Income Tax Contingencies

The aggregate changes in the balance of unrecognized tax benefits were as follows:



Dollars in thousands	Year Ended December 31,
Dollars in thousands	2014			2013			2012
Balance, beginning of the year	$	2,781		$	2,383		$	2,455
Additions based on tax positions related to the current year	1,836			824			—
Additions for tax positions related to prior years	806			18			251
Reductions for tax positions related to prior years	—			(257		)	(71		)
Reductions from lapse of applicable statute of limitations	(784		)	(49		)	(252		)
Settlements	—			(138		)	—
Balance, end of year	$	4,639		$	2,781		$	2,383

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities and the net increase (decrease) in the valuation allowance were as follows:



Dollars in thousands	December 31,
	2014			2013
Deferred tax assets:
Income tax loss carryforwards	$	5,690		$	7,347
Capital loss carryforwards	5,930			5,917
Credit carryforwards	2,929			2,289
Accrued liabilities and allowances	22,652			14,929
Stock-based compensation	11,901			12,547
Intangible assets	17,166			17,252
Investment basis	—			3,968
Other	3,776			2,148
Gross deferred tax assets	70,044			66,397
Less: Valuation Allowance	(6,898		)	(6,898		)
Total deferred tax assets	63,146			59,499
Deferred tax liabilities:
Property and equipment	(68,417		)	(93,407		)
Product costs	(43,140		)	(40,757		)
Convertible debt interest	—			(552		)
Total deferred tax liabilities	(111,557		)	(134,716		)
Net deferred tax liabilities	$	(48,411	)	$	(75,217	)

Summary of Valuation Allowance

Change in Valuation Allowance



Dollars in thousands	Year Ended December 31,
Dollars in thousands	2014		2013		2012
Increase in valuation allowance	$	—	$	6,898	$	—

Summary of Operating Loss Carryforwards

Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as follows:



Dollars in thousands	December 31, 2014
Dollars in thousands	Federal		State		Foreign
Net operating loss carryforwards	$	257	$	36,457	$	16,448
Deferred tax assets related to net operating loss carryforwards	$	90	$	1,286	$	4,314
Years that net operating loss carryforwards will expire between	2029 to 2034		2019 and 2034		2033 and 2035

Summary of Tax Credit Carryforwards

The following table shows our U.S. state tax credits and related expiration periods. Based upon our projections for future taxable income, we believe it is more likely than not that we will realize the benefits of these credits prior to their expiration.



Dollars in thousands	December 31, 2014
Dollars in thousands	Amount		Expiration
U.S state tax credits:
Illinois state tax credits	$	3,388	2016 to 2017
California U.S. state tax credits	1,118		Do not expire
Total U.S. state tax credits	$	4,506

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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