Income Taxes
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Dec. 31, 2014
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
The Company provides for income taxes at a statutory rate of 35% adjusted for permanent differences expected to be realized, which primarily relate to non-deductible executive compensation expenses and state income taxes. The effective tax rate for the years ended December 31, 2014 and 2013 was 38% and 42%, respectively.
The following table presents Callon’s deferred tax assets and liabilities with respect to its carryforwards and other temporary differences:
If not utilized, the Company’s federal operating loss (“NOL”) carryforwards will expire as follows:
The Company’s current operations are located in Texas and are subject to the Texas margin tax. The Company has established a full valuation allowance on the tax benefits associated with state net operating loss carryforwards of approximately $171,907, which expire in years through 2034, related to other states in which the Company does not anticipate generating taxable state income. These amounts are not included in the deferred tax summary table above.
The Company had no significant unrecognized tax benefits at December 31, 2014. Accordingly, the Company does not have any interest or penalties related to uncertain tax positions. However, if interest or penalties were to be incurred related to uncertain tax positions, such amounts would be recognized in income tax expense. Tax periods for years 2001 through 2014 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject.
Below is a reconciliation of the reported amount of income tax expense attributable to continuing operations to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.
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