Income Taxes

Income tax (benefit) expense from continuing operations for the years ended December 31, 2016, 2015 and 2014 consisted of the following (dollars in thousands):



	2016			2015			2014
Current income tax expense
State and local	$	1,678		$	2,422		$	3,352
Total current income tax expense	$	1,678		$	2,422		$	3,352

Deferred tax (benefit) expense
Federal	$	(19,496	)	$	(48,123	)	$	7,172
State and local	(8,336		)	(139		)	(270		)
Total deferred tax (benefit) expense	(27,832		)	(48,262		)	6,902
Total income tax (benefit) expense	$	(26,154	)	$	(45,840	)	$	10,254

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, 2016, 2015 and 2014 because of the following (dollars in thousands):



	2016			2015			2014
Pretax (loss) income at federal statutory rate	$	(187,906	)	$	(207,317	)	$	7,707
State income tax (benefit) expense, net federal (benefit) expense	(1,812		)	(1,385		)	992
Meals and entertainment	429			380			424
Change in state tax rates	(1,618		)	1,605			(1,580		)
Section 162 disallowance	538			110			562
Impairment charges on goodwill with no tax basis	163,630			153,371			—
Increase in valuation allowance	32			190			2,189
Other	553			7,206			(40		)
Net income tax (benefit) expense	$	(26,154	)	$	(45,840	)	$	10,254

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2015 are presented below (dollars in thousands):



	2016			2015
Noncurrent deferred tax assets:
Accounts receivable	$	1,422		$	1,849
Advertising relationships	2,548			3,686
Other liabilities	27,014			28,140
AMT tax credit	2,042			2,042
Net operating loss	111,778			155,475
Noncurrent deferred tax assets	144,804			191,192
Less: valuation allowance	(17,205		)	(17,173		)
Net noncurrent deferred tax assets	127,599			174,019
Noncurrent deferred tax liabilities:
Intangible assets	482,620			527,775
Property and equipment	20,485			30,260
Cancellation of debt income	12,544			31,865
Noncurrent deferred tax liabilities	515,649			589,900
Net noncurrent deferred tax liabilities	388,050			415,881
Net deferred tax liabilities	$	388,050		$	415,881

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 considered 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. Based upon the Company's analysis of all sources of positive and negative evidence, including the expected generation of taxable income in future years in certain jurisdictions, the Company concluded that it is more likely than not certain deferred tax assets will be realized.

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 its 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. During the year ended December 31, 2016, the valuation allowance remained at $17.2 million. The changes in the valuation allowance relate to a decrease of $0.2 million related to state rate changes, an increase of $0.8 million related to the Company's estimates of its inability to recover certain state net operating losses and a decrease of $0.6 million related to the write off of certain state net operating losses expected to expire in the future. For the year ended December 31, 2016, $0.6 million of the change in valuation allowance was recorded to deferred tax expense as $0.6 million of the overall zero change in valuation allowance related directly to the write off of net operating losses with an existing valuation allowance.

At December 31, 2016, the Company had federal net operating loss carry forwards, which are available to offset future taxable income, of approximately $271.4 million which will expire in the years 2030 through 2032. At December 31, 2016, the Company had state net operating loss carry forwards available to offset future income of approximately $1.2 billion which, if not utilized, will expire in the years 2017 through 2036. 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 for which no deferred tax asset is recognized. 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 recorded interest and penalties related to unrecognized tax benefits in current income tax expense. Of this amount, $2.9 million was recorded to expense in 2016. The total interest and penalties accrual as of December 31, 2016 is $2.1 million. The overall decrease in accrued interest and penalty in 2016 of $2.9 million is due to additional accruals for interest and penalty on prior year positions of $0.4 million, and reductions to interest and penalty accruals of $3.3 million related to the reversal of positions associated with the expiration of certain statues of limitations. The total unrecognized tax benefits and accrued interest and penalties at December 31, 2016 was $14.0 million. Of this total, $12.4 million represented 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 $14.0 million total unrecognized tax benefits and accrued interest and penalties, $13.3 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 2012; 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, 2015	$	14,466
Settlements	(1,180		)
Lapse of statute of limitations	(657		)
Balance at December 31, 2015	$	12,629
Increase for prior year positions	275
Lapse of statute of limitations	(1,014		)
Balance at December 31, 2016	$	11,890