13. INCOME TAXES

Significant components of the income tax benefit (expense) for the years ended December 31, 2018, 2017 and 2016 are as follows:


	Year Ended December 31,
	2018		2017		2016
Current:
Federal	$	(4,304)	$	(1,748)	$	(703)
State and local		(2,504)		(1,921)		(1,713)
Total current		(6,808)		(3,669)		(2,416)

Deferred:
Federal		10,461		10,343		(7,989)
State and local		1,386		452		(790)
Total deferred		11,847		10,795		(8,779)

	$	5,039	$	7,126	$	(11,195)

The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax benefit (expense) is as follows:


	Year Ended December 31,
	2018		2017		2016
Income tax benefit (expense) at U.S. statutory rate	$	64,535	$	(2,822)	$	(12,675)
Tax effect from:
State income taxes, net of federal benefit		12,547		(418)		(1,904)
State income taxes, valuation allowance		(13,140)		—		—
Share-based compensation		80		3,003		4,148
Valuation allowance		(48,677)		—		—
Loss on noncontrolling interest		—		(113)		(1,138)
Change in tax laws		1,104		7,828		—
Changes in uncertain tax positions		(636)		—		—
Disallowed compensation		(678)		—		—
Impairment losses		(9,674)		—		—
Other		(422)		(352)		374
Income tax benefit (expense)	$	5,039	$	7,126		(11,195)

Significant components of deferred tax assets and liabilities are as follows:



	December 31,
	2018		2017
Deferred tax assets:
Intangible assets	$	50,630	$	—
Allowance for doubtful accounts		6,501		5,696
Net operating loss and credit carryforwards		4,064		2,114
Compensation and benefits		7,407		4,611
Other temporary differences		2,164		679
Total deferred tax assets		70,766		13,100
Valuation allowance		(62,916)		—
Total net deferred tax assets		7,850		13,100

Deferred tax liabilities:
Property and equipment		(9,358)		(8,221)
Intangibles assets		—		(18,185)
Prepaid expenses and other current assets		(1,158)		(740)
Investments		(115)		(321)
Total deferred tax liabilities		(10,631)		(27,467)

Net deferred tax liabilities	$	(2,781)	$	(14,367)

At December 31, 2018, the Company had deferred tax assets of $70,766. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with other available positive and negative evidence. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, the three-year loss position is not solely determinative and accordingly, the Company considers all other available positive and negative evidence in its analysis. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. Due primarily to the parent company, along with several of its subsidiaries, being in a three-year cumulative loss from continuing operations position as of December 31, 2018, the Company has determined it is not more likely its consolidated and a substantial portion of separate entities deferred tax assets established for state loss carryforwards and net deferred tax assets, will be realized as a benefit in the future. Accordingly, the Company has established a valuation allowance against these net deferred tax assets in the amount of $62,916.

At December 31, 2018, the Company had $40,970 of state and local gross net operating loss carryforwards. These carryforwards expire between 2019 through 2037.

The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In addition to the reduction in the tax rate, the major provisions of the Tax Act which were applicable to the Company include providing for immediate expense recognition of capital expenditures, modified the meals and entertainment deduction, changed the executive compensation deduction, along with repealing or modifying many other business deductions or credits. In addition, on December 22, 2017 the SEC Staff issued Staff Accounting Bulletin No. 118, which addressed how an entity should recognize provisional amounts when it does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when an entity has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year.

At December 31, 2017, the Company had not completed its accounting for the effects of the Tax Act. The Company was able to determine a reasonable estimate of the impact of the Tax Act by calculating provisional amounts for 2017. In accordance with the Tax Act, the Company re-measured its deferred tax assets and liabilities based on the tax rates at which they are expected to reverse in the future, generally 21 percent, which resulted in an additional income tax benefit of $7,828 in 2017, which is included as a component of the income tax benefit for the year ended December 31, 2017. In the fourth quarter of 2018, the Company refined its previous estimates made in 2017 and completed its accounting for the Tax Act which resulted in recording an additional income tax benefit of $1,104, which is included as a component of the income tax benefit for the year ended December 31, 2018.

The change in unrecognized tax benefits is as follows:


	Year Ended December 31,
	2018		2017		2016
Balance, January 1,	$	268	$	268	$	—
Additions based on tax positions of prior years		783		—		268
Additions based on tax positions of the current year		1,302		—		—
Reductions due to lapse in statute of limitations		(268)		—		—
Balance, December 31,	$	2,085	$	268	$	268

If all these unrecognized tax benefits were recognized the impact on the income tax benefit would have been an increase of $816 for the year ended December 31, 2018. It is reasonably possible that our unrecognized tax benefits could decrease by approximately $723 in the next twelve months. The liability for unrecognized tax benefits for uncertain tax positions is included “Accrued expenses - other” in the consolidated balance sheets.

The Company prepares and files its tax returns based on interpretations of tax laws and regulations. In the normal course of business, such tax returns are subject to examination by various taxing authorities. The Company has open tax years of 2014 to 2017 with various significant tax jurisdictions.