Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is composed of the following (in thousands):

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	(30,301	)	$	52,578		$	1,358
State		5,623			15,275			4,035
Total current (benefit) expense		(24,678	)		67,853			5,393
Deferred:
Federal		31,122			(46,364	)		(9,636	)
State		989			(11,752	)		(2,827	)
Total deferred expense (benefit)		32,111			(58,116	)		(12,463	)
Income tax expense (benefit)	$	7,433		$	9,737		$	(7,070	)

Schedule of Reconciliation on Income Tax Benefit Computed at Statutory Federal Rate and Income Tax Expense (Benefit)

The following table presents a reconciliation of the income tax benefit computed at the statutory federal rate and the Company’s income tax expense (benefit) (in thousands):

	Year Ended December 31,
	2016			2015			2014
Income tax benefit—computed as 35% of pretax loss	$	(82,286	)	$	(85,235	)	$	(60,546	)
Effect of non-controlling interests and redeemable non-controlling interests		91,183			93,221			47,962
Goodwill impairment		12,810			—			—
Amortization of prepaid tax asset		11,750			6,661			2,199
Effect of nondeductible expenses		6,942			1,232			6,617
State and local income tax expenses (net of federal benefit)		4,298			2,289			616
Effect of domestic production activities deduction		(473	)		(4,699	)		—
Effect of tax credits		(36,328	)		(4,106	)		(3,939	)
Other		(463	)		374			21
Income tax expense (benefit)	$	7,433		$	9,737		$	(7,070	)

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the impact of temporary differences between assets and liabilities for financial reporting purposes and the amounts recognized for income tax reporting purposes, net operating loss carryforwards and other tax credits measured by applying currently enacted tax laws. The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2016			2015
Deferred tax assets:
Accruals and reserves	$	8,523		$	4,582
Stock-based compensation		7,791			9,068
Tax credits		1,744			—
Transaction costs		—			4,216
Other		351			395
Gross deferred tax assets		18,409			18,261
Valuation allowance		(204	)		(212	)
Net deferred tax assets		18,205			18,049
Deferred tax liabilities:
Investment in solar funds		(368,536	)		(220,803	)
Depreciation and amortization		(38,116	)		(13,004	)
Interest rate swaps		(5,732	)		—
Accruals and reserves		(1,039	)		(275	)
Gross deferred tax liabilities		(413,423	)		(234,082	)
Net deferred tax liabilities	$	(395,218	)	$	(216,033	)