INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of components of the income tax provision (benefit)

The components of the income tax expense (benefit) are as follows (in thousands):



	Year Ended December 31,
	2017			2016		2015
Current income tax expense:
Federal	$	10,055		$	11,519	$	5,847
State	2,606			2,480		1,149
Current income tax expense	12,661			13,999		6,996
Deferred income tax (benefit) provision:
Federal	(3,805		)	3,703		(19,676		)
State	(2,565		)	2,664		(10,293		)
Deferred income tax (benefit) provision	(6,370		)	6,367		(29,969		)
Income tax expense (benefit)	$	6,291		$	20,366	$	(22,973	)

Schedule of reconciliation of total income tax provision to amounts computed by applying statutory federal income tax rate to income (loss) from continuing operations before income taxes

A reconciliation of the income tax expense (benefit) to the amounts computed by applying the statutory federal income tax rate to income (loss) from continuing operations before income taxes is shown as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Income tax expense at the federal statutory rate of 35%	$	8,998		$	18,051		$	9,920
State income taxes, net of effect of federal tax benefit	(268		)	4,038			1,480
Impact of Tax Cuts and Jobs Act	9,062			—			—
Excess Tax Deductions on Non-Cash Compensation	(11,134		)	—			—
Change in (release of) valuation allowance	593			(416		)	(34,409		)
Research and experimentation tax credit	(1,318		)	(2,574		)	—
Other, net	358			1,267			36
Income tax expense (benefit)	$	6,291		$	20,366		$	(22,973	)

Schedule of components of the deferred tax assets and deferred tax liabilities

The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Provision for accrued expenses	$	4,368		$	8,056
Net operating loss carryforwards ^(a)	6,296			8,548
Non-cash compensation expense	8,929			5,699
Goodwill	—			1,825
Contingent liabilities	6,666			—
Other	2,138			139
Total gross deferred tax assets	28,397			24,267
Less: valuation allowance ^(b)	(2,694		)	(2,101		)
Total deferred tax assets, net of the valuation allowance	25,703			22,166
Deferred tax liabilities:
Intangible and other assets	(1,960		)	(2,704		)
Other	(1,160		)	(1,071		)
Total gross deferred tax liabilities	(3,120		)	(3,775		)
Net deferred taxes	$	22,583		$	18,391

(a)

At December 31, 2017, the Company had pre-tax consolidated federal net operating losses ("NOLs") of $5.8 million. The federal NOLs will expire in 2030. The Company's NOLs will be available to offset taxable income (until such NOLs are either used or expire) subject to the Internal Revenue Code Section 382 annual limitation. In addition, the Company has state NOLs of approximately $190.4 million at December 31, 2017 that will expire at various times between 2018 and 2038.


(b)	The valuation allowance is related to items for which it is "more likely than not" that the tax benefit will not be realized.

Deferred income taxes are presented in the accompanying consolidated balance sheets as follows (in thousands):



	December 31,
	2017		2016
Deferred income tax assets	$	20,156	$	14,610
Non-current assets of discontinued operations	2,427		3,781
Net deferred taxes	$	22,583	$	18,391

Schedule of the deferred tax valuation allowance reconciliation

A reconciliation of the beginning and ending balances of the deferred tax valuation allowance is as follows (in thousands):



	Year Ended December 31,
	2017		2016			2015
Balance, beginning of the period	$	2,101	$	2,341		$	40,121
Charges to earnings ^(a)	593		(240		)	(37,780		)
Balance, end of the period	$	2,694	$	2,101		$	2,341

Schedule of reconciliation of beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):



	Year Ended December 31,
	2017		2016
Balance, beginning of the period	$	550	$	19
Additions based on tax positions of the current year	198		550
Lapse of statute of limitations	—		(19		)
Balance, end of the period	$	748	$	550