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86
Significant components of our deferred tax assets and liabilities and the net increase (decrease) in the valuation allowance were
as follows:
Dollars in thousands
December 31,
2014 2013
Deferred tax assets:
Income tax loss carryforwards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,690 $ 7,347
Capital loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,930 5,917
Credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,929 2,289
Accrued liabilities and allowances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,652 14,929
Stock-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,901 12,547
Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,166 17,252
Investment basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,968
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,776 2,148
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,044 66,397
Less: Valuation Allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,898)(6,898)
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,146 59,499
Deferred tax liabilities:
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (68,417)(93,407)
Product costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,140)(40,757)
Convertible debt interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (552)
Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (111,557)(134,716)
Net deferred tax liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ (48,411)$ (75,217)
Change in Valuation Allowance
Dollars in thousands
Year Ended December 31,
2014 2013 2012
Increase in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 6,898 $ —
Deferred Tax Assets Relating to Income Tax Loss Carryforwards
Our deferred tax assets relating to income tax loss carryforwards and expiration periods are summarized as follows:
Dollars in thousands
December 31, 2014
Federal State Foreign
Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 257 $ 36,457 $ 16,448
Deferred tax assets related to net operating loss carryforwards . . . . . . . $ 90 $ 1,286 $ 4,314
Years that net operating loss carryforwards will expire between. . . . . . 2029 to 2034 2019 and 2034 2033 and 2035
Based upon our projections for future taxable income over the periods in which the deferred tax assets are deductible, we
believe it is more likely than not that we will realize the benefits of these deductible differences.
U.S. State Tax Credits and Expiration Periods
The following table shows our U.S. state tax credits and related expiration periods. Based upon our projections for future
taxable income, we believe it is more likely than not that we will realize the benefits of these credits prior to their expiration.
Dollars in thousands
December 31, 2014
Amount Expiration
U.S state tax credits:
Illinois state tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,388 2016 to 2017
California U.S. state tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,118 Do not expire
Total U.S. state tax credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,506