INCOME TAXES

The Company’s federal and state income tax expense (benefit) from continuing operations for the three months and six months ended June 30, 2016 and 2015 is summarized in the following table (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2016		2015			2016		2015
Current
Federal	$	—	$	—		$	—	$	—
State	25		29			25		30
Total current	25		29			25		30
Deferred
Federal	108		(16,816		)	125		(15,188		)
State	16		(3,134		)	22		(2,835		)
Total deferred	124		(19,950		)	147		(18,023		)
Total income tax expense (benefit)	$	149	$	(19,921	)	$	172	$	(17,993	)

The income tax expense recognized for the three months and six months ended June 30, 2016 is a result of an increase in the deferred tax liability.

The Company’s reconciliation of the statutory rate from continuing operations to the effective income tax rate for the three months and six months ended June 30, 2016 and 2015 is summarized as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Tax benefit at statutory rate	$	(2,844	)	$	(92,080	)	$	(6,271	)	$	(96,972	)
State tax benefit, net of federal taxes	3			11			3			11
Valuation allowance changes affecting income tax provision	1,926			31,098			5,314			37,879
Goodwill impairment	—			40,977			—			40,977
Non-deductible transaction costs and other	1,064			73			1,126			112
Income tax expense (benefit)	$	149		$	(19,921	)	$	172		$	(17,993	)

At June 30, 2016, we had Federal net operating loss (“NOL”) carry forwards of approximately $274.9 million, of which $17.0 million is subject to an annual limitation, which will begin expiring in 2026 and later. Of our Federal NOLs, $18.0 million will be recorded in additional paid-in capital when realized. These NOLs are related to the exercise of non-qualified stock options and restricted stock grants. We have post-apportioned state NOL carry forwards of approximately $358.0 million, the majority of which will begin expiring in 2017 and later.