INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The provision for income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2019			2018			2017
Current:
Federal⁽¹⁾	$	(468	)	$	(2,113	)	$	2,272
State	1,847			215			2,162
Total current provision (benefit)	1,379			(1,898		)	4,434
Deferred:
Federal	107			(8,009		)	(8,333		)
State	(3,383		)	(4,486		)	1,668
Total deferred benefit	(3,276		)	(12,495		)	(6,665		)
Total benefit from income taxes	$	(1,897	)	$	(14,393	)	$	(2,231	)

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(1)

As of December 31, 2018, the income tax benefit reflects the recognition of a $2.1 million income tax receivable from amended federal income tax returns to carry back the net operating loss and tax credits generated in 2017 and refundable alternative minimum tax credit.

Schedule of reconciliation of the provision for income taxes to the amount computed by applying the federal statutory rate to income before income taxes

The provision for income taxes reconciles to the amount computed by applying the federal statutory rate, 21.0%, to income before income taxes as follows (in thousands, except percentages):



	Year Ended December 31,
	2019					2018					2017
Expected federal income tax	21.0	%	$	1,234		21.0	%	$	(11,247	)	35.0	%	$	11,406
State income taxes⁽¹⁾	(26.1	)%	(1,536		)	8.0	%	(4,270		)	8.0	%	2,606
Permanent items	(6.5	)%	(384		)	1.1	%	(614		)	0.3	%	88
Research and development tax credits	(17.1	)%	(1,003		)	1.6	%	(850		)	(2.6	)%	(850		)
Excess tax benefits and stock-based compensation	(13.9	)%	(815		)	(1.0	)%	559			(0.7	)%	(243		)
Acquisition-related tax adjustments	3.2	%	189			(2.1	)%	1,144			(1.4	)%	(445		)
Enactment of the Tax Act	—	%	—			—	%	—			(47.4	)%	(15,461		)
Other	7.1	%	418			(1.7	)%	885			2.0	%	668
Income tax benefit	(32.3	)%	$	(1,897	)	26.9	%	$	(14,393	)	(6.8	)%	$	(2,231	)

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(1)

As of December 31, 2019, the state income taxes reflect the recognition of a $2.0 million tax benefit from change in state tax apportionment, change in state tax laws, and tax rates applied against the Company’s deferred tax balance.

Schedule of components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):



	December 31,
	2019		2018
Components of deferred tax assets and liabilities
Deferred tax assets:
Operating lease liabilities	$	18,524	$	—
Unrealized gains and losses in other comprehensive income	12,568		3,200
Interest expense carryforwards	9,079		11,278
Net operating loss carryforwards	6,975		17,258
Tax credit carryforwards	4,156		3,114
Stock-based compensation	4,078		3,553
Accrued expenses and reserves	2,196		4,571
Other	1,297		2,634
Total deferred tax assets	58,873		45,608
Deferred tax liabilities:
Intangibles	113,978		127,272
Property, equipment and capitalized software	22,606		26,612
Operating lease right-of-use assets	15,300		—
Prepaids and other	4,453		2,092
Total deferred tax liabilities	156,337		155,976
Net deferred tax liabilities before valuation allowance	97,464		110,368
Valuation allowance	229		301
Net deferred tax liabilities	$	97,693	$	110,669

Schedule of unrecognized tax benefits

The following table presents the changes in uncertain tax position (in thousands):



	2019			2018			2017
January 1	$	1,158		$	—		$	80
Gross increases in tax positions in current period	2			—			—
Gross increase in tax positions in prior period	37			32			291
Gross decrease in tax positions in prior period	(1		)	(1		)	(160		)
Gross increase in tax positions from acquisitions	16			1,162			—
Settlement	—			—			(211		)
Lapse of statute of limitations	(51		)	(35		)	—
Uncertain tax position at December 31	$	1,161		$	1,158		$	—