Income Taxes from Continuing Operations (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

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	2015		2014		2013
U.S. operations	$	121,940	$	188,473	$	259,057
Foreign operations	1,125		2,368		3,341
Total income from continuing operations before income taxes	$	123,065	$	190,841	$	262,398

Components of Income Tax Expense

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

	Year Ended December 31,
Dollars in thousands	2015			2014			2013
Current:
U.S. Federal	$	89,996		$	69,117		$	38,876
State and local	10,658			12,294			10,104
Foreign	469			415			(424		)
Total current	101,123			81,826			48,556
Deferred:
U.S. Federal	(27,641		)	(16,232		)	(3,642		)
State and local	380			427			(5,653		)
Foreign	(243		)	143			449
Total deferred	(27,504		)	(15,662		)	(8,846		)
Total income tax expense	$	73,619		$	66,164		$	39,710

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,
	2015		2014		2013
U.S Federal tax expense at statutory rates	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	5.8		4.1		3.9
Federal and state credits	(1.6	)	(1.1	)	(0.9	)
Domestic production activities deduction	(4.9	)	(3.6	)	(0.6	)
Goodwill Impairment	24.4		—		—
Recognition of outside basis differences	—		(1.1	)	(15.4	)
ecoATM option payments	0.2		1.4		0.7
Valuation allowance	0.2		—		2.3
Acquisition of ecoATM	—		—		(9.3	)
Other	0.7		—		(0.6	)
Effective tax rate	59.8	%	34.7	%	15.1	%

Summary of Unrecognized Tax Benefits

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

Dollars in thousands	Year Ended December 31,
	2015			2014			2013
Balance, beginning of the year	$	4,639		$	2,781		$	2,383
Additions based on tax positions related to the current year	1,837			1,836			824
Additions for tax positions related to prior years	527			806			18
Reductions for tax positions related to prior years	(118		)	—			(257		)
Reductions from lapse of applicable statute of limitations	—			(784		)	(49		)
Settlements	—			—			(138		)
Balance, end of year	$	6,885		$	4,639		$	2,781

Summary 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,
	2015			2014
Deferred tax assets:
Income tax loss carryforwards	$	3,015		$	5,690
Capital loss carryforwards	4,759			5,930
Credit carryforwards	3,482			2,929
Accrued liabilities and allowances	27,188			22,652
Stock-based compensation	9,065			11,901
Intangible assets	13,109			17,166
Other	5,720			3,776
Gross deferred tax assets	66,338			70,044
Less: Valuation Allowance	(7,141		)	(6,898		)
Total deferred tax assets	59,197			63,146
Deferred tax liabilities:
Property and equipment	(42,984		)	(68,417		)
Product costs	(46,699		)	(43,140		)
Total deferred tax liabilities	(89,683		)	(111,557		)
Net deferred tax liabilities	$	(30,486	)	$	(48,411	)

Change in Valuation Allowance

Change in Valuation Allowance

Dollars in thousands	Year Ended December 31,
	2015		2014		2013
Increase in valuation allowance	$	243	$	—	$	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, 2015
	Federal		State		Foreign
Net operating loss carryforwards	$	23	$	24,570	$	7,082
Deferred tax assets related to net operating loss carryforwards	$	8	$	1,118	$	1,889
Years that net operating loss carryforwards will expire between	2029-2034		2017-2033		2033-2035

Summary of Tax Credit Carryforwards

U.S. State Tax Credits and Expiration Periods

The following table shows our U.S. state tax credits before valuation allowances and related expiration periods.

Dollars in thousands	December 31, 2015
	Amount		Expiration
U.S state tax credits:
Illinois state tax credits	$	2,894	2017-2021
California U.S. state tax credits	588		Do not expire
Total U.S. state tax credits	$	3,482