INCOME TAXES

9 Months Ended

Sep. 30, 2019

INCOME TAXES

INCOME TAXES

12. INCOME TAXES

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Income tax benefit (expense) at U.S. statutory rate	$	37,656	$	(10)	$	73,925	$	734
Tax effect from:
Valuation allowance		(29,438)		—		(61,861)		—
Share-based compensation		(906)		(86)		(2,298)		456
State income taxes, net of federal benefit		(206)		8		(754)		(755)
State income taxes, valuation allowance		1,575		—		1,637		—
Non-deductible employee compensation in excess of $1,000		(12)		183		(173)		(975)
Non-deductible goodwill impairment		(6,568)		—		(9,214)		—
Other		(14)		26		(228)		(210)
Income tax benefit (expense)	$	2,087	$	121	$	1,034	$	(750)

In determining the requirement for a valuation allowance against its deferred tax assets, the Company considers its historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset, along with other available positive and negative evidence. Due primarily to the parent company, along with several of its subsidiaries, being in a three-year cumulative loss from continuing operations position at September 30, 2019, the Company has determined it more likely than not its consolidated deferred tax asset and a substantial portion of separate entities’ deferred tax assets established for state loss carryforwards, will not be realized as a benefit in the future.  Accordingly, the Company has increased its valuation allowance against these net deferred tax assets by $60,224 at September 30, 2019.