Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of current and deferred income tax expense are as follows (in thousands):



	Years Ended December 31,
	2017			2016		2015
Current expense:
Federal	$	999		$	158	$	—
State	1,733			2,076		819
Total current expense	2,732			2,234		819
Deferred expense (benefit):
Federal	36,569			13,146		8,412
State	(270		)	1		(60		)
Total deferred expense	36,299			13,147		8,352
Total income tax provision	$	39,031		$	15,381	$	9,171

Schedule of Deferred Tax Assets and Liabilities

The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):



	December 31, 2017			December 31, 2016
Deferred tax assets:
Accrued bonuses	$	591		$	1,120
Accrued payroll	75			101
Stock-based compensation	268			291
Federal net operating loss carryover	14,078			40,800
State net operating loss carryover	1,353			1,147
Basis in partnerships	13,377			22,922
Warranty accrual	483			444
Inventory (Section 263A)	944			945
Accrued job costs	178			503
Reserve to complete	91			345
Alternative minimum tax credit carryover	1,145			158
Other	28			126
Deferred tax assets, gross	32,611			68,902
Valuation allowance	(1,346		)	(1,147		)
Deferred tax assets, net	$	31,265		$	67,755

Deferred tax liabilities:
Prepaid insurance	$	(17	)	$	(43	)
Other	(37		)	(114		)
Deferred tax liabilities	$	(54	)	$	(157	)

Schedule of Effective Tax Rate Reconciliation

The provision for income before income tax provision differs from the amount that would be computed by applying the statutory federal income tax rate of 35% to income before income tax provision as a result of the following (amounts in thousands):



	Years Ended December 31,
	2017			2016			2015
Tax on pre-tax book income (before reduction for noncontrolling interests)	$	22,483		$	17,693		$	12,151
Tax effect of noncontrolled earnings post Transaction	(3,630		)	(3,996		)	(3,577		)
State tax expense, net	1,213			1,153			533
Change in federal statutory tax rate	19,017			—			—
Other	(52		)	531			64
Total tax expense	$	39,031		$	15,381		$	9,171
Effective tax rate	60.8		%	30.4		%	26.4		%

Rollforward of Valuation Allowances

The rollforward of valuation allowances is as follows (amounts in thousands):



	Years Ended December 31,
	2017			2016
Valuation allowance at beginning of the year	$	1,147		$	1,161
Release of Colorado net operating loss valuation allowance	(8		)	—
Change in federal benefit tax rate - deferred	240			—
Expiration of state net operating losses	(33		)	(14		)
Valuation allowance at end of the year	$	1,346		$	1,147

Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):



	Years Ended December 31,
	2017			2016
Uncertain tax positions at beginning of year	$	249		$	—
Change related to Georgia state income taxes	(249		)	249
Uncertain tax positions at end of year	$	—		$	249