RE:Q4 & FY resultsIncome taxes
During the fourth quarter of 2015, we concluded that it was more likely than not that we would be able to realize the benefit of our federal deferred tax assets in the future. We based this conclusion on historical and projected operating performance, as well as our expectation that operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As a result, we reduced the valuation allowance on a portion of our net deferred tax assets at December 31, 2015, which resulted in a $31.2 million benefit to our tax provision in 2015. In 2014, our tax expense of $0.1 million relates to changes in federal and state deferred income tax expense.
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I was a bit taken aback when I read that the net revenue for the year was a massive net gain instead of an expected negative revenue. I still can't wrap my head around this tax expense though. Can someone provide some insight?