Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense

The provision for income tax for the years ended December 31, 2017 and 2016, consisted of the following components ($ in thousands):



	Year Ended December 31,
	2017		2016
Current:
Federal	$	2,473	$	3,295
State	385		493
Total current taxes	2,858		3,788
Deferred:
Federal	13,264		(7,736		)
State	696		(803		)
Total deferred taxes	13,960		(8,539		)
Income taxes	$	16,818	$	(4,751	)

Schedule of Differences Between the Income Tax Provision at the US Federal Statutory Rate and the Provision for Income Tax

The items accounting for differences between the federal statutory income tax rate and our effective tax rate for the years ended December 31, 2017 and 2016, are as follows:



	2017		2016
U.S. federal income tax rate	35.0	%	35.0	%
State income taxes, net of federal tax benefits	3.1	%	(0.1	)%
Tax Act	18.7	%	—	%
Valuation allowance	(10.6	)%	(51.6	)%
Operations of nontaxable subsidiary	(8.0	)%	(40.9	)%
Stock-based compensation contribution	—	%	(1.2	)%
Non-deductible or non-taxable items	0.1	%	2.0	%
Other	0.5	%	—	%
Total	38.8	%	(56.8	)%

Schedule of Deferred Tax Assets and Liabilities

The deferred income tax assets consisted of the following as of December 31, 2017 and 2016 ($ in thousands):



	Year Ended December 31,
	2017			2016
Deferred tax assets:
Investment in subsidiary	$	17,980		$	16,715
Tax receivable agreement	3,991			3,789
Stock compensation	694			694
Net operating loss carryforwards	3,165			2,230
Allowance for doubtful accounts	5			4
Other	2			165
Total deferred tax assets	25,837			23,597
Less valuation allowances	(9,250		)	(12,799		)
Deferred tax assets, net of valuation allowance	16,587			10,798
Deferred tax liabilities:
Identifiable intangible assets	(1,197		)	(2,383		)
Stock compensation	(423		)	(225		)
Other	(7		)	(9		)
Deferred tax assets, net	$	14,960		$	8,181