ENTRAVISION COMMUNICATIONS CORP - 10-K filing on 2017-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016		2015		2014
Current
Federal	$	—	$	—	$	—
State		0.6		0.6		0.6
Foreign		—		—		0.1
		0.6		0.6		0.7
Deferred
Federal		12.0		12.8		15.0
State		0.5		3.0		2.7
		12.5		15.8		17.7
Total provision for taxes	$	13.1	$	16.4	$	18.4

Schedule of Effective Income Tax Rate

The income tax provision (benefit) differs from the amount of income tax determined by applying the Company’s federal corporate income tax rate of 35% to pre-tax income for the years ended December 31, 2016 and December 31, 2015, and income tax rate of 34% to pre-tax income for the year ended December 31, 2014 due to the following (in millions):

	2016		2015			2014
Computed “expected” tax provision (benefit)	$	11.7	$	14.7		$	15.5
Change in income tax resulting from:
State taxes, net of federal benefit		1.4		2.5			2.1
Foreign taxes		—		—			0.1
Other		—		(0.8	)		0.7
	$	13.1	$	16.4		$	18.4

Components of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities at December 31, 2016 and 2015 consist of the following (in millions):

		2016			2015
Deferred tax assets:
Accrued expenses	$	3.4		$	3.2
Accounts receivable		1.0			1.2
Net operating loss carryforward		116.7			123.6
Stock-based compensation		1.8			2.1
Intangible assets		8.0			8.0
Credits		1.0			1.0
Property and equipment		0.4			0.3
Other		2.5			2.9
		134.8			142.3
Valuation allowance		-			(1.2	)
Net deferred tax assets	$	134.8		$	141.1
Deferred tax liabilities:
Intangible assets	$	(89.6	)	$	(82.5	)
Property and equipment		-			-
Deferred state taxes		(0.5	)		(0.7	)
		(90.1	)		(83.2	)
	$	44.7		$	57.9

Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions):

	Amount
Balance at December 31, 2014	$	6.4
Change in balances related to tax positions		(0.1)
Balance at December 31, 2015	$	6.3
Change in balances related to tax positions		0.0
Balance at December 31, 2016	$	6.3