Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018			2017			2016
Current expense (benefit):
Federal	$	(569	)	$	999		$	158
State	2,993			1,733			2,076
Total current expense	2,424			2,732			2,234
Deferred expense (benefit):
Federal	15,023			36,569			13,146
State	(311		)	(270		)	1
Total deferred expense	14,712			36,299			13,147
Total income tax expense	$	17,136		$	39,031		$	15,381

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, 2018			December 31, 2017
Deferred tax assets:
Basis in partnerships	10,947			13,377
Accrued expenses	2,182			1,418
Inventory	1,521			944
State net operating loss carryover	1,063			1,353
Federal net operating loss carryover	432			14,078
Alternative minimum tax credit carryover	576			1,145
Change in fair value of contingent consideration	385			—
Stock-based compensation	347			268
Other	175			28
Deferred tax assets, gross	17,628			32,611
Valuation allowance	(1,063		)	(1,346		)
Deferred tax assets, net	$	16,565		$	31,265

Deferred tax liabilities:
Prepaid insurance	$	(66	)	$	(17	)
Other	—			(37		)
Deferred tax liabilities	$	(66	)	$	(54	)
Total deferred income tax assets, net	$	16,499		$	31,211

Schedule of Effective Tax Rate Reconciliation

Effective Tax Rate Reconciliation

The tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21%, 35% and 35% for the years ended December 31, 2018, 2017 and 2016, respectively, to income before income taxes as a result of the following (amounts in thousands):



	Years Ended December 31,
	2018			2017			2016
Tax on pre-tax book income (before reduction of noncontrolling interests)	$	17,151		$	22,483		$	17,693
Tax effect of non-controlled earnings	(2,743		)	(3,630		)	(3,996		)
State tax expense, net	2,258			1,213			1,153
Change in federal statutory tax rate	—			19,017			—
Other	470			(52		)	531
Total tax expense	$	17,136		$	39,031		$	15,381
Effective tax rate	21.0		%	60.8		%	30.4		%

Rollforward of Valuation Allowances

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



	Years Ended December 31,
	2018			2017
Valuation allowance at beginning of the year	$	1,346		$	1,147
Release of Colorado net operating loss valuation allowance	—			(8		)
Change in federal benefit tax rate - deferred	—			240
Expiration of state net operating losses	(283		)	(33		)
Valuation allowance at end of the year	$	1,063		$	1,346

Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions for the year ended December 31, 2017 is as follows (in thousands):



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