Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.7.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Summary of Changes in Gross Amount of Unrecognized Tax Benefits
A summary of changes in the gross amount of unrecognized tax benefits is as follows:
 
 
 
December 31, 2016
 
 
 
(Dollars in thousands)
 
Balance at January 1, 2016
 
$
100
 
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
 
 
(73)
 
Related interest and penalties, net of federal tax benefits
 
 
(27)
 
Balance as of December 31, 2016
 
$
—
 
Schedule of Schedule of Consolidated Provision for Income Taxes
The consolidated provision for income taxes is as follows:
 
 
 
December 31,
 
 
 
2014
 
2015
 
2016
 
 
 
(Dollars in thousands)
 
Current:
 
 
 
 
 
 
 
 
 
 
Federal
 
$
—
 
$
—
 
$
—
 
State
 
 
269
 
 
249
 
 
229
 
 
 
 
269
 
 
249
 
 
229
 
Deferred:
 
 
 
 
 
 
 
 
 
 
Federal
 
 
3,932
 
 
6,234
 
 
4,938
 
State
 
 
564
 
 
212
 
 
(595)
 
 
 
 
4,496
 
 
6,446
 
 
4,343
 
Provision for income taxes
 
$
4,765
 
$
6,695
 
$
4,572
 
Schedule of Consolidated Deferred Tax Asset and Liability
Consolidated deferred tax assets and liabilities consist of the following:
 
 
 
December 31,
 
 
 
2015
 
2016
 
 
 
(Dollars in thousands)
 
Deferred tax assets:
 
 
 
 
 
 
 
Financial statement accruals not currently deductible
 
$
9,699
 
$
9,324
 
Net operating loss, AMT credit and other carryforwards
 
 
71,593
 
 
71,215
 
State taxes
 
 
114
 
 
87
 
Other
 
 
3,785
 
 
3,394
 
Total deferred tax assets
 
 
85,191
 
 
84,020
 
Valuation allowance for deferred tax assets
 
 
(2,771)
 
 
(4,487)
 
Net deferred tax assets
 
$
82,420
 
$
79,533
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Excess of net book value of property and equipment and software for financial reporting purposes over tax basis
 
$
2,826
 
$
2,096
 
Excess of net book value of intangible assets for financial reporting purposes over tax basis
 
 
127,078
 
 
128,988
 
Interest rate swap
 
 
(315)
 
 
(193)
 
Unrecognized tax benefits
 
 
100
 
 
—
 
Other
 
 
—
 
 
—
 
Total deferred tax liabilities
 
 
129,689
 
 
130,891
 
Net deferred tax liabilities
 
$
(47,269)
 
$
(51,358)
 
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,
 
 
 
2015
 
2016
 
 
 
(Dollars in thousands)
 
Deferred income tax asset per balance sheet
 
$
9,813
 
$
9,411
 
Deferred income tax liability per balance sheet
 
 
(57,082)
 
 
(60,769)
 
 
 
$
(47,269)
 
$
(51,358)
 
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,
 
 
 
2014
 
2015
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Statutory federal income tax rate (at 35%)
 
$
3,584
 
$
6,246
 
$
4,706
 
Effect of state taxes, net of federal
 
 
292
 
 
458
 
 
(486)
 
Permanent items
 
 
613
 
 
445
 
 
266
 
State rate change
 
 
166
 
 
23
 
 
(1,664)
 
Valuation allowance
 
 
84
 
 
(181)
 
 
1,763
 
Other, net
 
 
26
 
 
(296)
 
 
(13)
 
Provision for income taxes
 
$
4,765
 
$
6,695
 
$
4,572