Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.3.1.900
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Summary of Changes in Gross Amount of Unrecognized Tax Benefits
A summary of the changes in the gross amount of unrecognized tax benefits is as follows: 
 
 
 
December 31, 2015
 
 
 
(Dollars in thousands)
 
Balance at January 1, 2015
 
$
508
 
Additions based on tax positions related to the current year
 
 
—
 
Additions based on tax positions related to prior years
 
 
—
 
Reductions related to tax positions of prior years
 
 
—
 
Decrease due to statute expirations
 
 
(417)
 
Related interest and penalties, net of federal tax benefits
 
 
9
 
Balance as of December 31, 2015
 
$
100
 
Schedule of Consolidated Provision (Benefit) for Income Taxes from Continuing Operations
The consolidated provision (benefit) for income taxes from continuing operations for Salem consisted of the following:
 
 
 
December 31,
 
 
 
2013
 
2014
 
2015
 
 
 
(Dollars in thousands)
 
Current:
 
 
 
 
 
 
 
 
 
 
Federal
 
$
—
 
$
—
 
$
—
 
State
 
 
193
 
 
269
 
 
249
 
 
 
 
193
 
 
269
 
 
249
 
Deferred:
 
 
 
 
 
 
 
 
 
 
Federal
 
 
(1,075)
 
 
3,932
 
 
6,234
 
State
 
 
(3,310)
 
 
564
 
 
212
 
 
 
 
(4,385)
 
 
4,496
 
 
6,446
 
Provision for (benefit from) income taxes
 
$
(4,192)
 
$
4,768
 
$
6,695
 
Schedule of Consolidated Deferred Tax Asset and Liability
The consolidated deferred tax asset and liability consisted of the following: 
 
 
December 31,
 
 
 
2014
 
2015
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Deferred tax assets:
 
 
 
 
 
 
 
Financial statement accruals not currently deductible
 
$
8,045
 
$
9,699
 
Net operating loss, AMT credit and other carryforwards
 
 
72,618
 
 
71,593
 
State taxes
 
 
108
 
 
114
 
Other
 
 
3,821
 
 
3,785
 
Total deferred tax assets
 
 
84,592
 
 
85,191
 
Valuation allowance for deferred tax assets
 
 
(2,952)
 
 
(2,771)
 
Net deferred tax assets
 
$
81,640
 
$
82,420
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Excess of net book value of property and equipment and software for financial reporting purposes over tax basis
 
$
3,000
 
$
2,826
 
Excess of net book value of intangible assets for financial reporting purposes over tax basis
 
 
118,773
 
 
127,078
 
Interest rate swap
 
 
187
 
 
(315)
 
Unrecognized tax benefits
 
 
508
 
 
100
 
Other
 
 
128
 
 
—
 
Total deferred tax liabilities
 
 
122,596
 
 
129,689
 
Net deferred tax liabilities
 
$
(40,956)
 
$
(47,269)
 
Schedule of Reconciliation of Net Deferred Tax Liabilities to Financial Instrument
The following table reconciles the above net deferred tax liabilities to the financial statements:
 
 
 
December 31,
 
 
 
2014
 
2015
 
 
 
(Dollars in thousands)
 
Deferred income tax asset per balance sheet
 
$
8,153
 
$
9,813
 
Deferred income tax liability per balance sheet
 
 
(49,109)
 
 
(57,082)
 
 
 
$
(40,956)
 
$
(47,269)
 
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Provision for Income Tax
A reconciliation of the statutory federal income tax rate to the provision for income tax is as follows:
 
 
 
Year Ended December 31,
 
 
 
2013
 
2014
 
2015
 
 
 
(Dollars in thousands)
 
Statutory federal income tax rate (at 35%)
 
$
(2,411)
 
$
3,584
 
$
6,246
 
Effect of state taxes, net of federal
 
 
(2,025)
 
 
542
 
 
300
 
Permanent items
 
 
270
 
 
613
 
 
445
 
Other, net
 
 
(26)
 
 
26
 
 
(296)
 
Provision for income taxes
 
$
(4,192)
 
$
4,765
 
$
6,695