Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The Company recognized income tax expense of $5.2 million, $4.4 million and $1.8 million during the years ended December 31, 2019, 2018 and 2017, respectively, which consists of the following (in thousands):

	2019			2018			2017
Current provision
Federal	$	(85	)	$	(100	)	$	173
State	43			222			62
Total current provision	(42		)	122			235
Deferred provision
Federal	3,740			3,256			955
State	1,501			1,044			564
Total deferred provision	5,241			4,300			1,519
Total income tax expense	$	5,199		$	4,422		$	1,754

Reconciliation of Expected Income Taxes

A reconciliation of the “expected” income taxes computed by applying the federal statutory income tax rate to the total expense is as follows (in thousands):

	2019			2018			2017
Computed “expected” tax (benefit) expense	$	(139	)	$	3,197		$	3,422
Increase (decrease) in income taxes resulting from:
State income taxes	1,535			1,219			2
Return-to-provision	49			—			—
Permanent items	4,054			(264		)	190
Enacted rate change	—			—			(1,755		)
Other	(300		)	270			(105		)
Total income tax expense	$	5,199		$	4,422		$	1,754

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows at December 31, 2019 and 2018 (in thousands):

	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	6,633		$	4,192
Location contracts acquired	4,699			1,887
Other	260			1,032
	11,592			7,111
Deferred tax liabilities:
Property and equipment	24,568			16,006
	$	(12,976	)	$	(8,895	)

Summary of Carryforwards of Net Operating Losses

The following table summarizes carryforwards of net operating losses as of December 31, 2019 and 2018 (in thousands):

	2019			2018
	Amount		Expiration	Amount		Expiration
Federal net operating losses	$	27,873	2033 - 2039	$	17,942	2031 - 2038
State net operating losses	14,454		2024 - 2031	5,655		2023 - 2030