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 2015 differed from the federal statutory rate of 35.0% primarily due to recording a valuation allowance for our deferred tax assets, which is discussed below.  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.  

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 2015, we did not make any payments for federal and state income taxes or receive any refunds of significance.  During 2014, we 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.    

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, 2015 (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.

Valuation Allowance

 During 2015, we recorded a valuation allowance of $232.9 million related to federal and state deferred tax assets.  Deferred tax assets are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods.  The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions 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 of December 31, 2015 we had a valuation allowance related to Federal, Louisiana and Alabama net operating losses and other deferred taxes.  As of December 31, 2014, we had a valuation allowance related only to Louisiana net operating losses.  

Uncertain Tax Positions

The table below sets forth the beginning and ending balance 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 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 2015, 2014 and 2013, the amounts recognized in income tax expense were immaterial.

Years open to examination

The tax years from 2012 through 2015 remain open to examination by the tax jurisdictions to which we are subject.