Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Federal, State and Foreign Income Tax Provision

The federal and state tax provision is summarized as follows:


	Year Ended December 31,
	2019		2018		2017
Federal income tax (benefit) expense:
Current	$	(371)	$	3,462	$	19,011
Deferred	(1,166)		(1,157)		(19,762)
Total federal income tax (benefit) expense	(1,537)		2,305		(751)

State income tax expense (benefit):
Current	2,562		2,113		4,048
Deferred	(1,598)		266		706
Total state income tax expense	964		2,379		4,754
Total (benefit) provision for income taxes	$	(573)	$	4,684	$	4,003

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes is as follows:


	Year Ended December 31,
	2019			2018			2017
Federal statutory rates	21.0		%	21.0		%	35.0		%
Federal income tax at statutory rates	$	(1,160)		$	4,812		$	19,281
Revaluation of net deferred tax liabilities due to U.S. tax reform	—			(286)			(19,304)
U.S. tax reform impact on equity income of investees	—			—			(1,646)
Change in valuation allowance	10			36			177
Change in uncertain tax positions	181			108			7
State income taxes, net of federal benefit	721			1,843			3,157
Non-taxable income	(93)			—			—
Compensation expense	606			235			—
Stock-based compensation	(101)			76			3,400
Meals and entertainment	81			74			99
Transaction costs	—			263			159
Gain on remeasurement of cost method investment	—			(1,381)			—
Tax credits	(858)			(1,208)			(354)
Legal expense	—			—			(805)
Other	40			112			(168)
(Benefit) provision for income taxes	$	(573)		$	4,684		$	4,003
Effective income tax rate	10.4		%	20.4		%	7.3		%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities of continuing operations are as follows:


	December 31,
	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	14,357	$	19,485
Capital loss carryforward	1,406		1,072
Tax credit carryforwards	792		840
Accounts receivable allowance	1,497		227
Accrued items and reserves	2,854		6,817
Stock-based compensation	1,276		1,480
Deferred rent	476		543
Deferred revenue	207		272
Other	68		773
Total deferred tax assets	22,933		31,509
Deferred tax liabilities:
Deferred financing costs	—		12
Prepaids	1,766		900
Property and equipment depreciation	3,404		3,492
Goodwill and intangibles amortization	5,312		6,944
Equity investment	32,774		40,577
Total deferred tax liabilities	43,256		51,925
Deferred tax liabilities, net of deferred tax assets	(20,323)		(20,416)
Less valuation allowance	(2,584)		(2,633)
Net deferred tax liabilities	$	(22,907)	$	(23,049)

Unrecognized Tax Benefits Rollforward

A reconciliation of the liability for unrecognized income tax benefits for continuing operations is as follows:


	December 31,
	2019		2018		2017
Unrecognized tax benefits, beginning of year	$	1,222	$	1,115	$	1,108
Increase related to prior year tax positions	133		104		22
Increase related to current year tax positions	128		160		101
Statute of limitations expiration	(80)		(157)		(116)
Unrecognized tax benefits, end of year	$	1,403	$	1,222	$	1,115

Summary of Operating Loss Carryforwards

In addition, at December 31, 2019, the Company had approximately $20,453 of state net operating loss carryforwards which expire as follows:






2023	$	2,141
2028 and thereafter	18,312
Total state net operating loss carryforwards	$	20,453