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16. INCOME TAXES
The provision for income taxes (including discontinued operations) consists of the following:
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Three Months Ended June 30,
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Six Months Ended June 30,
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2015
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2014
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2015
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2014
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Current:
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Federal
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$
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34
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$
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518
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$
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80
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$
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590
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State and Local
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8
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103
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20
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164
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Total Current Provision
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$
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42
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$
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621
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$
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100
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$
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754
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Deferred:
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Federal
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$
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(13
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)
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$
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(74
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)
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$
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(23
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)
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$
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(314
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)
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State and Local
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(2
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)
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(7
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)
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(4
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)
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(520
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)
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Total Deferred Provision
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$
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(15
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)
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$
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(81
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)
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$
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(27
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)
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$
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(834
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)
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Total Provision (benefit) for Income Taxes
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$
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27
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$
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540
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$
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73
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$
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(80
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)
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Provision (benefit) for income taxes from continuing operations
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$
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27
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$
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4
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$
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73
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$
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144
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Provision (benefit) for income taxes from discontinued operations
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$
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—
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$
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536
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$
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—
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$
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(224
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)
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The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of June 30, 2015 are presented below:
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June 30, 2015
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December 31, 2014
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Deferred tax assets:
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Allowance for loan losses
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$
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395
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$
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366
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Depreciation and amortization
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16,765
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13,938
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Accrued expenses
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1,436
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2,006
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Net operating losses
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29,510
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26,543
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Other
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172
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2,365
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Total deferred tax assets
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48,278
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45,218
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Less valuation allowance
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(31,920
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)
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(27,434
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)
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Net deferred tax assets
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$
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16,358
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$
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17,784
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Deferred tax liabilities:
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Leaseholds
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16,289
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17,741
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Total deferred tax liabilities
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$
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16,289
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$
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17,741
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Net deferred income tax assets (A)
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$
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69
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$
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43
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(A)
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Recorded in Receivables and Other Assets on the consolidated balance sheets.
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In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible.
Newcastle had recorded a valuation allowance against a significant portion of its deferred tax assets as of June 30, 2015 as management does not believe that it is more likely than not that the deferred tax assets will be realized.
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