Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Federal, State and Foreign Income Tax Provision

The federal and state tax provision is summarized as follows:



	Year Ended December 31,
	2018			2017			2016
Federal income tax expense (benefit):
Current	$	3,462		$	19,011		$	20,963
Deferred	(1,157		)	(19,762		)	(6,545		)
Total Federal income tax expense (benefit)	2,305			(751		)	14,418

State income tax expense (benefit):
Current	2,113			4,048			4,501
Deferred	266			706			(947		)
Total State income tax expense (benefit)	2,379			4,754			3,554
Total provision for income taxes	$	4,684		$	4,003		$	17,972

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes is as follows:



	Year Ended December 31,
	2018			2017			2016
Federal statutory rates	21		%	35		%	35		%
Federal income tax at statutory rates	$	4,812		$	19,281		$	15,699
Revaluation of net deferred tax liabilities due to U.S. tax reform	(286		)	(19,304		)	—
U.S. tax reform impact on equity income of investees	—			(1,646		)	—
Change in valuation allowance	36			177			296
Change in uncertain tax positions	108			7			73
State income taxes, net of federal benefit	1,843			3,157			2,399
Compensation expense	235			—			—
Stock compensation	76			3,400			—
Meals and entertainment	74			99			94
Transaction costs	263			159			—
Cost method investment re-measurement gain	(1,381		)	—			—
Tax credits	(1,208		)	(354		)	(947		)
Legal expense	—			(805		)	522
Other	112			(168		)	(164		)
Provision for income taxes	$	4,684		$	4,003		$	17,972
Effective income tax rate	20		%	7		%	40		%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities of continuing operations are as follows:



	December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	19,485		$	—
Capital loss carryforward	1,072			—
Tax credit carryforwards	840			486
Accounts receivable allowance	227			1,134
Accrued items and reserves	6,817			8,297
Stock compensation	1,480			1,480
Deferred rent	543			572
Deferred revenue	272			—
Other	773			172
	31,509			12,141
Deferred tax liabilities:
Deferred financing costs	12			38
Prepaids	900			1,439
Property and equipment depreciation	3,492			3,329
Goodwill and intangibles amortization	6,944			3,678
Equity investment	40,577			42,113
Other	—			303
	51,925			50,900
Net deferred tax liabilities	(20,416		)	(38,759		)
Less valuation allowance	(2,633		)	(473		)
Net deferred tax liabilities	$	(23,049	)	$	(39,232	)
Net noncurrent deferred tax assets, net of valuation allowance of $0 for 2018 and 2017	$	2,601		$	—
Net noncurrent deferred tax liabilities, net of valuation allowance of $2,633 and $473 for 2018 and 2017, respectively	(25,650		)	(39,232		)
	$	(23,049	)	$	(39,232	)

Unrecognized Tax Benefits Rollforward

A reconciliation of the liability for unrecognized income tax benefits for continuing operations is as follows:



	December 31,
	2018			2017			2016
Unrecognized tax benefits, beginning of year	$	1,115		$	1,108		$	271
Balance upon acquisition/disposition	—			—			764
Increase related to prior year positions	104			22			37
Increase related to current year tax positions	160			101			139
Statute of limitations expiration	(157		)	(116		)	(103		)
Unrecognized tax benefits, end of year	$	1,222		$	1,115		$	1,108

Summary of Operating Loss Carryforwards

In addition, at December 31, 2018, the Company had approximately $26,936 of state net operating loss carryforwards which expire as follows:



2023	$	2,021
Thereafter	24,915
Total state net operating loss carryforwards	$	26,936