Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of income tax expense (benefit) (in thousands) consist of the following:



	For the Years Ended December 31,
	2018			2017			2016
Current
Federal	$	458		$	368		$	—
State and local	9			266			—
Foreign	251			—			—
Total current tax expense	718			634			—
Deferred
Federal	(14,820		)	3,202			(9,708		)
State and local	(2,252		)	(3,102		)	(1,138		)
Foreign	(49		)	—			—
Total deferred tax expense	(17,121		)	100			(10,846		)
Change in valuation allowance	16,443			(7,371		)	91
Total tax expense (benefit)	$	40		$	(6,637	)	$	(10,755	)

A reconciliation of the U.S. statutory tax rate to our effective tax rate is presented below:



	For the Years Ended December 31,
	2018		2017		2016
U.S. statutory tax rate	21.0	%	35.0	%	35.0	%
U.S. state income taxes, net of U.S. federal tax benefit	3.6	%	3.3	%	4.0	%
Foreign earnings at other than U.S. rates	(0.2	)%	—	%	—	%
Change in valuation allowance	(30.4	)%	(34.0	)%	(0.1	)%
Change in valuation allowance, tax reform	—	%	43.7	%	—	%
Impact of tax reform	—	%	(36.0	)%	—	%
Goodwill impairment	—	%	—	%	(18.7	)%
Gain on contribution	—	%	—	%	(5.0	)%
Non-controlling interest	(0.7	)%	(4.6	)%	(11.0	)%
Excess tax benefits on stock-based compensation	3.9	%	3.1	%	0.1	%
Federal and state R&D tax credits	4.5	%	—	%	—	%
Change in uncertain tax positions	(1.1	)%	—	%	—	%
Other, net	(0.7	)%	(1.8	)%	0.2	%
Effective rate	(0.1	)%	8.7	%	4.5	%

Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows:



	As of December 31,
	2018			2017
Deferred Tax Assets
Start-up and organizational costs	$	160		$	185
Internally developed software costs	3,283			3,974
Net operating loss carryforwards	76,019			51,197
Federal and state R&D tax credits	1,828			—
Other	861			(69		)
Subtotal	82,151			55,287
Valuation allowance	(37,037		)	(53,201		)
Total deferred tax assets	45,114			2,086

Deferred Tax Liabilities
Equity-method investment	43,492			4,523
Intangible assets	26,710			—
Total deferred tax liabilities	70,202			4,523
Net deferred tax assets (liabilities)	$	(25,088	)	$	(2,437	)

Changes in our valuation allowance (in thousands) were as follows:



	For the Years Ended December 31,
	2018			2017			2016
Balance at beginning-of-year	$	53,201		$	26,376		$	19,974
Charged to costs and expenses	16,443			(7,371		)	91
Charged to other accounts ⁽¹⁾	(32,607		)	34,196			6,311
Balance at end-of-year	$	37,037		$	53,201		$	26,376


⁽¹⁾	Amounts charged to other accounts includes a decrease of $32.6 million, increase of $34.2 million and increase of $6.3 million charged to additional paid-in-capital for the years ended December 31, 2018, 2017 and 2016, respectively.

Changes in our unrecognized tax benefits (in thousands) were as follows:



	For the Years Ended December 31,
	2018			2017			2016
Balance at beginning-of-year	$	762		$	—		$	—
Gross increases - tax positions in prior period	934			1,108			—
Gross decreases - tax positions in prior period	(762		)	—			—
Gross increases - tax positions in current period	—			74			—
Change in tax rate	—			(420		)	—
Balance at end-of-year	$	934		$	762		$	—