Income Taxes and Tax Receivable Agreement (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

Income tax (benefit) expense is comprised of the following (in thousands):

	Year Ended December 31,
	2015			2014		2013
Current:
Federal	$	—		$	—	$	—
State	909			1,669		469
Deferred:
Federal	(132,311		)	13,235		6,353
State	(17,580		)	854		748
Total income tax (benefit) expense	$	(148,982	)	$	15,758	$	7,570

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes as reported in the consolidated statements of operations and the amount of income tax (benefit) expense computed by multiplying consolidated income (loss) in each year by the U.S. federal statutory rate of 35% follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
Tax (benefit) expense at U.S.federal statutory rate	$	(26,648	)	$	(3,840	)	$	8,601
State income tax, net of U.S. federal tax benefit	1,059			1,402			408
Change in valuation allowance	(137,721		)	29,336			4,067
Expiration of carryforwards and stock option forfeitures	—			1,286			2,524
Net income attributable to non-controlling interests	(24,996		)	(13,207		)	(9,108		)
Changes in measurement of uncertain tax positions	(10		)	589			—
Nondeductible transaction costs	3,442			4,230			—
Tax return reconciling differences	(1,574		)	(4,419		)	836
Change in effective tax rate	(2,143		)
TRA liability	39,428
Other	181			381			242
Total income tax (benefit) expense	$	(148,982	)	$	15,758		$	7,570

Schedule of Deferred Tax Assets and Liabilities

The components of temporary differences and the approximate tax effects that give rise to the Company’s net deferred tax asset are as follows (in thousands):

	December 31,
	2015			2014
Deferred tax assets:
Medical malpractice liability	$	869		$	526
Accrued vacation and incentive compensation	2,212			2,079
Net operating loss carryforwards	146,663			123,709
Allowance for bad debts	1,846			980
Basis differences of partnerships and joint ventures	—			16,131
SERP liability	685			527
Capital loss carryforwards	2,052			3,513
Stock option compensation	367			362
Deferred rent	2,288			—
Deferred financing costs	3,083			4,386
Audit and tax fee accruals	242			760
FIN 48 liabilities	244			440
TRA liability	2,750			—
Other deferred assets	1,748			1,597
Total gross deferred tax assets	165,049			155,010
Less: Valuation allowance	(6,949		)	(142,909		)
Total deferred tax assets	158,100			12,101
Deferred tax liabilities:
Depreciation on property and equipment	(806		)	(1,050		)
Amortization of intangible assets	(16,083		)	(16,159		)
Basis differences of partnerships and joint ventures	(46,494		)	(43,195		)
Deferred rent	—			(515		)
Other deferred liabilities	(612		)	(466		)
Total deferred tax liabilities	(63,995		)	(61,385		)
Net deferred tax assets (liabilities)	$	94,105		$	(49,284	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending liability for gross unrecognized tax benefits for the years ended December 31, 2015 and 2014 is as follows (in thousands):

	Year Ended December 31,
	2015			2014
Unrecognized tax benefits at beginning of year	$	2,755		$	—
Additions for tax positions acquired from Symbion	—			1,766
Additions based on tax provisions related to the current year	—			66
Additions for tax positions of prior years	136			923
Reductions for tax positions of prior year	(996		)
Settlements	(492		)
Unrecognized tax benefits at end of year	$	1,403		$	2,755