Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The income tax provision consists of the following (the 2018 amounts have been recast in accordance with Note 1 above):


Year ended December 31,	2019			2018
Current Benefit
Federal	$	(247	)	$	(753	)
State		(174	)		(10	)

Total Current Benefit		(421	)		(763	)

Deferred Expense (Benefit)
Federal		789			(2,095	)
State		(46	)		(2,266	)

Total Deferred Expense (Benefit)		743			(4,361	)

Income Tax Expense (Benefit)	$	322		$	(5,124	)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation between a federal income tax rate of 21% in for the years ended December 31, 2019 and 2018 of income before income taxes and the effective tax rate which is derived by dividing the provision (benefit) for income taxes by the income before the provision for income taxes (in thousands):


Year ended December 31,	2019			2018
Computed provision for income taxes at the statutory rate	$	(3,964	)	$	37,000
Increase (decrease) in income taxes resulting from:
State income tax provision, net of federal income tax benefit		(830	)		(2,880	)
Non-deductible expenses		241			198
Gain on troubled debt restructuring		—			(44,981	)
Loss of tax attributes		—			14,322
Valuation allowance changes affecting the provision for income taxes		5,873			(9,562	)
Return to provision adjustments		(954	)		(125	)
Other, net		(46	)		904

Provision (benefit) for income taxes	$	322		$	(5,124	)

Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows:


December 31,	2019			2018
Deferred Tax Assets
Accruals and reserves not currently deductible	$	6,631		$	7,084
Federal NOL and interest expense limitation carryovers		13,796			286
State NOL and interest expense limitation carryovers		1,106			39
Accrued and deferred compensation		2,888			2,809
Prepaid items		1,198			2,432
Lease liability		4,052			—

Contract liability		2,543			3,242

Residual value guarantee settlement		—			2,568

Other		1,010			849

Subtotal before valuation allowance		33,224			19,309
Less: valuation allowance		(6,330	)		(457	)

Total Deferred Tax Assets		26,894			18,852

Deferred Tax Liabilities
Property and equipment		(24,696	)		(20,701	)
Right-of-use asset		(4,791	)		—
Other		(6	)		(6	)

Total Deferred Tax Liabilities		(29,493	)		(20,707	)

Net Deferred Income Tax Liabilities	$	(2,599	)	$	(1,855	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 and 2018 is as follows (in thousands):


December 31,	2019			2018
Unrecognized tax benefits at the beginning of the year	$	388		$	278
Gross increases – current year tax positions		—			128
Gross decreases – lapse of statute		(140	)		(18	)

Unrecognized tax benefits at the end of the year	$	248		$	388

Interest and penalties in year-end balance	$	121		$	252