INCOME TAXES

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016		2015			2016		2015
Current
Federal	$	—	$	—		$	—	$	—
State	118		19			143		50
Total current	118		19			143		50
Deferred
Federal	268		(3,803		)	393		(19,290		)
State	35		(767		)	57		(3,304		)
Total deferred	303		(4,570		)	450		(22,594		)
Total income tax expense (benefit)	$	421	$	(4,551	)	$	593	$	(22,544	)

The income tax expense recognized for the three months and nine months ended September 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 nine months ended September 30, 2016 and 2015 is summarized as follows (in thousands):

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
Tax benefit at statutory rate	$	(3,730	)	$	(11,275	)	$	(10,002	)	$	(108,143	)
State tax benefit, net of federal taxes	131			(446		)	134			(435		)
Valuation allowance changes affecting income tax provision	4,967			4,715			10,282			42,501
Goodwill impairment	—			2,385			—			43,362
Non-deductible transaction costs and other	(947		)	70			179			171
Income tax expense (benefit)	$	421		$	(4,551	)	$	593		$	(22,544	)

At September 30, 2016, the Company had Federal net operating loss (“NOL”) carry forwards of approximately $293.8 million, of which $16.3 million is subject to an annual limitation, which will begin expiring in 2026 and later. Of our Federal NOLs, $18.2 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. The Company has post-apportioned state NOL carry forwards of approximately $378.0 million, the majority of which will begin expiring in 2017 and later.