Income Taxes

Income tax (benefit) expense from continuing operations for the years ended December 31, 2015, 2014 and 2013 consisted of the following (dollars in thousands):



	2015			2014			2013
Current income tax expense
State and local	$	2,422		$	3,352		$	2,987
Total current income tax expense	$	2,422		$	3,352		$	2,987

Deferred tax (benefit) expense
Federal	$	(48,123	)	$	7,172		$	(65,330	)
State and local	(139		)	(270		)	(6,121		)
Total deferred tax expense (benefit)	(48,262		)	6,902			(71,451		)
Total income tax (benefit) expense	$	(45,840	)	$	10,254		$	(68,464	)

Total income tax (benefit) expense from continuing operations differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2015, 2014 and 2013 due to the following (dollars in thousands):



	2015			2014			2013
Pretax (loss) income at federal statutory rate	$	(207,317	)	$	7,707		$	(8,698	)
State income tax (benefit) expense, net federal (benefit) expense	(1,385		)	992			(209		)
Meals and entertainment	380			424			291
Acquisition costs	—			—			399
Change in state tax rates	1,605			(1,580		)	296
Section 162 disallowance	110			562			140
Impairment charges on goodwill with no tax basis	153,371			—			—
Increase (decrease) in valuation allowance	190			2,189			(61,512		)
Other	7,206			(40		)	829
Net income tax (benefit) expense	$	(45,840	)	$	10,254		$	(68,464	)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2015 and 2014 are presented below (dollars in thousands):



	2015			2014
Current deferred tax assets:
Accounts receivable	$	—		$	1,975
Accrued expenses and other current liabilities	—			826
Net operating loss	—			45,246
Current deferred tax assets	—			48,047
Less: valuation allowance	—			(4,199		)
Net current deferred tax assets	—			43,848
Noncurrent deferred tax assets:
Accounts receivable	1,849			—
Advertising relationships	3,686			4,839
Other liabilities	28,140			19,835
AMT tax credit	2,042			2,042
Net operating loss	155,475			136,700
Noncurrent deferred tax assets	191,192			163,416
Less: valuation allowance	(17,173		)	(14,792		)
Net noncurrent deferred tax assets	174,019			148,624
Noncurrent deferred tax liabilities:
Intangible assets	527,775			560,954
Property and equipment	30,260			38,798
Cancellation of debt income	31,865			51,002
Other	—			5,861
Noncurrent deferred tax liabilities	589,900			656,615
Net noncurrent deferred tax liabilities	415,881			507,991
Net deferred tax liabilities	$	415,881		$	464,143

Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry-forwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse.

During the year ended December 31, 2014, the valuation allowance increased by $2.2 million to $19.0 million. This increase was recorded to deferred tax expense and primarily relates to the Company's estimate of its inability to recover certain separate company state net net operating losses. During the year ended December 31, 2015, the valuation allowance decreased by $1.8 million to $17.2 million. The $1.8 million decrease to the valuation allowance relates to an increase of $0.3 million related to state rate changes, an increase of $0.2 million related to the Company's estimates of it's inability to recover certain state net operating losses and a decrease of $2.3 million related to the write off of certain state net operating losses expected to expire in the future. For the year ended December 31, 2015, $0.5 million of the change in valuation allowance was recorded to deferred tax expense as $2.3 million of the overall $1.8 million decrease in valuation allowance related directly to the write off of net operating losses with an existing valuation allowance.

At December 31, 2015, the Company has federal net operating loss carry forwards, which are available to offset future taxable income, of approximately $384.4 million which will expire in the years 2030 through 2032. At December 31, 2015, the Company has state net operating loss carry forwards available to offset future income of approximately $1.6 billion which, if not utilized, will expire in the years 2016 through 2035. In addition to the federal and state net operating loss carry forwards noted above, approximately $1.5 million of net operating loss carry forwards relate to windfall tax benefits associated with the Company's equity based compensation plan that will benefit additional paid in capital when realized. The Company's policy is to treat these equity based net operating loss carry forwards as the last net operating loss carry forwards to be consumed.

The Company records interest and penalties related to unrecognized tax benefits in current income tax expense. Of this amount, $0.4 million was recorded to expense in 2015. The total interest and penalties accrued as of December 31, 2015 is $5.0 million. The overall decrease in accrued interest and penalty in 2015 of $1.2 million is due to additional accruals for interest and penalty of $0.5 million, payments of $1.6 million related to settlements with taxing authorities and reductions to interest and penalty accruals of $0.1 million related to the reversal of positions associated with the expiration of certain statute of limitations. The total unrecognized tax benefits and accrued interest and penalties at December 31, 2015 was $17.6 million. Of this total, $14.8 million represents the unrecognized tax benefits and accrued interest and penalties that, if recognized, would favorably affect the effective income tax rate in future periods. Of the $17.6 million total unrecognized tax benefits and accrued interest and penalties, $13.5 million relates to items which are not expected to change significantly within the next 12 months. Substantially all federal, state, local and foreign income tax returns have been closed for the tax years through 2011; however, the various tax jurisdictions may adjust the Company's net operating loss carry forwards. The following table reconciles unrecognized tax benefits during the relevant years:



Balance at January 1, 2014	$	14,888
Lapse of statute of limitations	(422		)
Balance at December 31, 2014	$	14,466
Settlements	(1,180		)
Lapse of statute of limitations	(657		)
Balance at December 31, 2015	$	12,629