Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income Tax Benefit from Continuing Operations

The income tax benefit from continuing operations for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 is comprised of the following (in thousands):



	2017
	Federal			State		Total
Current income tax expense	$	138		$	—	$	138
Deferred income tax expense (benefit)	(993		)	254		(739		)
Income tax expense (benefit)	$	(855	)	$	254	$	(601	)



	2016
	Federal			State			Total
Current income tax expense	$	121		$	—		$	121
Deferred income tax benefit	(1,285		)	(123		)	$	(1,408	)
Income tax benefit	$	(1,164	)	$	(123	)	$	(1,287	)



	2015
	Federal		State		Total
Current income tax expense	$	63	$	—	$	63
Deferred income tax expense	17,735		2,825		20,560
Income tax expense	$	17,798	$	2,825	$	20,623

Schedule of Income Tax Benefit Computed Using Federal Statutory Income Tax Rate

The income tax benefit for the years ended December 31, 2017, 2016, and 2015 differs from the amount that would be computed using the federal statutory income tax rate due to the following (in thousands):



	For the Years Ended December 31,
	2017			2016			2015
Computed federal tax expense (benefit) at statutory rate	$	1,343		$	(1,291	)	$	14,275
State income taxes - net of federal tax benefit	126			(123		)	1,865
Gain on condemnation of Valencia	—			—			4,312
Federal tax rate change	(2,296		)	—			—
IRC Section 453A interest	113			121			63
Equity compensation	83			—			—
Other differences	30			6			108
Income tax expense	$	(601	)	$	(1,287	)	$	20,623

Summary of Deferred Tax Assets and Deferred Tax Liabilities Including Valuation Allowance

The following table summarizes the Company’s temporary differences between book and tax accounting that give rise to the deferred tax assets and deferred tax liabilities, including the valuation allowance, as of December 31, 2017 and 2016 (in thousands):



	December 31, 2017			December 31, 2016
DEFERRED TAX ASSETS:
Taxable meter deposits	$	33		$	40
Net operating loss carry forwards	2,087			4,976
Balterra intangible asset acquisition	224			336
Deferred gain on Sale of GWM	1,132			1,652
Deferred gain on ICFA funds received	4,911			7,350
Equity investment loss	341			459
Other	1,040			1,404
Total deferred tax assets	9,768			16,217
Valuation allowance	—			(9		)
Net deferred tax asset	9,768			16,208
DEFERRED TAX LIABILITIES:
Regulatory asset	(315		)	—
CP Water intangible asset acquisition	(381		)	(571		)
ICFA intangible asset	(577		)	(502		)
Property, plant and equipment	(4,392		)	(642		)
Gain on condemnation of Valencia	(7,217		)	(17,078		)
Total deferred tax liabilities	(12,882		)	(18,793		)
Net deferred tax liability	$	(3,114	)	$	(2,585	)