Income Taxes

Income tax expense differed from the amount computed by applying the federal statutory rate of 35% to pre-tax loss or income as a result of the following:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Tax expense (benefit) at the statutory federal rate	$	1,415		$	(180	)	$	996		$	186,428
State income tax expense (benefit) (net of federal benefit)	142			(18		)	100			18,643
Decrease in valuation allowance	(87		)	81			(245		)	(90,083		)
Costs for the SEC investigation	(256		)	—			1,092			—
Other	30			(269		)	91			221
Income tax expense (benefit)	$	1,244		$	(386	)	$	2,034		$	115,209

As of September 30, 2015, the Company had no federal net operating loss carryforwards and had $325.7 million of state net operating loss carryforwards, which are available to offset future taxable income through 2031.

In general, a valuation allowance is recorded if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss carryforwards. As of December 31, 2013, based on the timing of reversal of future taxable amounts and the Company’s history of losses, management did not believe it met the requirements to realize the benefits of certain of its deferred tax assets; therefore, the Company had maintained a valuation allowance of $93.1 million. During the nine months ended September 30, 2014, the Company reversed $90.1 million of the valuation allowance that was recorded as of December 31, 2013. As of September 30, 2015, management believes it has not met the requirements to realize the benefits for a portion of its deferred tax assets for state net operating loss carryforwards; therefore, the Company has maintained a valuation allowance of $6.0 million for these deferred tax assets.