|12 Months Ended|
Dec. 31, 2014
|Income Tax Disclosure [Abstract]|
13. Income Taxes
Income Tax Expense (Benefit)
Components of income tax expense (benefit) were as follows (in thousands):
Effective Tax Rate Reconciliation
The reconciliation of income taxes computed at the U.S. federal statutory tax rate to our income tax expense (benefit) is as follows (in thousands):
Our effective tax rate for the year 2014 is distorted due to a small pre-tax loss; consequently, our permanent differences have a larger impact on our effective tax rate. Our effective tax rate for the year 2013 differed from the federal statutory rate primarily as a result of state income taxes. Our effective tax rate for the year 2012 differed from the federal statutory rate primarily as a result of the recapture of deductions for qualified domestic production activities under Section 199 of the IRC as a function of loss carrybacks to prior years and the impact of state income taxes.
Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows (in thousands):
During 2014, we made did not make any payments for federal and state income taxes and we received refunds of $3.0 million. During 2013, we made payments primarily for federal and state income taxes of approximately $3.0 million. During 2013, we received refunds of $59.1 million, of which $9.5 million have been accounted for as unrecognized tax benefits. The refunds were primarily attributable to tax loss carrybacks to 2010 and 2011, and refunds of estimated tax payments. During 2012, we made payments primarily for federal and state income taxes of $16.1 million and we received refunds related to prior years of $0.5 million.
At December 31, 2014, we did not have a federal income tax receivable. At December 31, 2013, we had a federal income tax receivable of $3.1 million. This amount is comprised principally of refunds related to estimated taxes paid during 2013.
Net Operating Loss and Tax Credit Carryovers
The table below presents the details of our net operating loss and tax credit carryovers as of December 31, 2014 (in thousands):
The federal net operating loss and alternative minimum tax credit amounts presented in the table, Deferred Tax Assets and Liabilities, reflect adjustments for unrecognized excess tax benefits and uncertain tax positions, as applicable, to the amounts presented above.
As of December 31, 2014 and 2013, we had a valuation allowance related to Louisiana state net operating losses. The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions during periods in which those temporary differences or net operating losses are deductible. In assessing the need for a valuation allowance on our deferred tax assets, we consider whether it is more likely than not that some portion or all of them will not be realized. As part of our assessment, we consider future reversals of existing taxable temporary differences.
Uncertain Tax Positions
The table below sets forth the reconciliation of the beginning and ending balances of the total amount of unrecognized tax benefits. There are no unrecognized benefits that would impact the effective tax rate if recognized. While amounts could change in the next 12 months, we do not anticipate it having a material impact on our financial statements.
Balances and changes in the uncertain tax positions are as follows (in thousands):
We recognize interest and penalties related to uncertain tax positions in income tax expense. For 2014, 2013 and 2012, the amounts recognized in income tax expense were immaterial.
Years open to examination
The tax years from 2010 through 2014 remain open to examination by the tax jurisdictions to which we are subject.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef