INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018			2017			2016
Current income tax expense:
Federal	$	(1,470	)	$	10,055		$	11,519
State	(204		)	2,606			2,480
Current income tax (benefit) expense	(1,674		)	12,661			13,999
Deferred income tax (benefit) provision:
Federal	(44,950		)	(3,805		)	3,703
State	(18,951		)	(2,565		)	2,664
Deferred income tax (benefit) provision	(63,901		)	(6,370		)	6,367
Income tax expense (benefit)	$	(65,575	)	$	6,291		$	20,366

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 from continuing operations before income taxes is shown as follows (in thousands):



	Year Ended December 31,
	2018			2017			2016
Federal statutory income tax	$	9,186		$	8,998		$	18,051
State income taxes, net of effect of federal tax benefit	(14,884		)	(268		)	4,038
Impact of Tax Cuts and Jobs Act	270			9,062			—
Excess tax deductions on non-cash compensation	(59,601		)	(11,134		)	—
Change in (release of) valuation allowance	(12		)	593			(416		)
Research and experimentation tax credit	(2,523		)	(1,318		)	(2,574		)
Other, net	1,989			358			1,267
Income tax expense (benefit)	$	(65,575	)	$	6,291		$	20,366

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,
	2018			2017
Deferred tax assets:
Provision for accrued expenses	$	5,953		$	4,368
Net operating loss carryforwards ^(a)	59,817			6,296
Non-cash compensation expense	12,505			8,929
Interest limitation	3,532			—
Contingent liabilities	3,053			6,666
Other	4,545			2,138
Total gross deferred tax assets	89,405			28,397
Less: valuation allowance ^(b)	(2,229		)	(2,694		)
Total deferred tax assets, net of the valuation allowance	87,176			25,703
Deferred tax liabilities:
Intangible and other assets	(4,623		)	(1,960		)
Other	(892		)	(1,160		)
Total gross deferred tax liabilities	(5,515		)	(3,120		)
Net deferred taxes	$	81,661		$	22,583

(a)

At December 31, 2018, the Company had pre-tax consolidated federal net operating losses ("NOLs") of $203.5 million. The federal NOLs no longer expire under the new TCJA. The Company's NOLs will be available to offset taxable income subject to the Internal Revenue Code Section 382 annual limitation. In addition, the Company has state NOLs of approximately $498.5 million at December 31, 2018 that will expire at various times between 2020 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,
	2018			2017
Deferred income tax assets	$	79,289		$	20,156
Non-current assets of discontinued operations	3,266			2,427
Deferred income tax liabilities	(894		)	—
Net deferred taxes	$	81,661		$	22,583

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,
	2018			2017		2016
Balance, beginning of the period	$	2,694		$	2,101	$	2,341
Charges to earnings	(465		)	593		(240		)
Balance, end of the period	$	2,229		$	2,694	$	2,101

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,
	2018		2017
Balance, beginning of the period	$	748	$	550
Additions based on tax positions of the current period	249		198
Additions based on tax positions of the prior period	130		—
Balance, end of the period	$	1,127	$	748