Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

The Company had a provision for income taxes for the six months ended June 30, 2014 and 2013 that consisted of the following (in thousands):


	Six Months Ended
	June 30,
	2014		2013
Current:
Foreign	$	—	$	—
Federal		—		—
State		5.3		4.0

Total		5.3		4.0

Deferred:
Foreign		—		—
Federal		2.1		—
State		.4		—

Total		2.5		—

Total:
Foreign		—		—
Federal		2.1		—
State		5.7		4.0

Total	$	7.8	$	4.0

Net Deferred Tax Assets

The tax effects of temporary differences that gave rise to deferred tax assets at June 30, 2014, and December 31, 2013, were as follows (in thousands):


	June 30, 2014			December 31, 2013
Deferred tax assets:
Net operating losses	$	30,291		$	28,973
Capital losses		4,153			4,153
Other asset reserves		(1,165	)		1
Accrued expenses		21			23

Total deferred tax assets		33,300			33,150
Valuation allowance		(32,067	)		(31,931	)

		1,233			1,219

Deferred tax liabilities:
State deferreds		(1,233	)		(1,219	)

Total deferred tax liabilities		(1,233	)		(1,219	)

Net deferred taxes	$	—		$	—

Reconciliation of Statutory Federal Income Tax Rate to Actual Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:


	June 30,
	2014			2013
Federal tax (benefit) rate		(34.0	)%		(34.0	)%

Increase (decrease) in taxes resulting from:
State income taxes		(5.8	)		(5.8	)
Change in valuation allowance		34.6			34.5
Permanent differences		5.3			5.3
Minimum tax		0.2			0.2

		0.3	%		0.2	%

SIMON WORLDWIDE INC 10-Q