Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes.

Schedule of components of the Company's income tax expense

The components of the Company’s income tax expense from operations for the year ended December 31, consisted of (in thousands):

	2016		2015		2014
Current:
Federal	$	468	$	139	$	105
State		1,259		1,398		860
Deferred:
Federal		4,045		(162)		1,045
State		135		(19)		130
Income tax expense	$	5,907	$	1,356	$	2,140

Schedule of reconciliation of income tax expense from operations to the federal statutory rate

A reconciliation of income tax expense from operations to the federal statutory rate for the year ended December 31, is as follows (in thousands):

	2016		2015		2014
Income taxes computed at federal statutory rate	$	73,200	$	61,161	$	43,280
State income taxes – net of federal benefit		7,347		7,196		5,114
Other differences:
Income taxes computed at the effective federal and state statutory rate for pass-through entities not subject to tax		(75,689)		(67,761)		(46,661)
Increase (decrease) of valuation allowance		1,049		735		(396)
Other		—		25		803
Income tax expense	$	5,907	$	1,356	$	2,140

Summary of significant items comprising the net deferred tax asset

Significant items comprising the net deferred tax assets at December 31, were (in thousands):

	2016		2015
Deferred tax liabilities
Accelerated depreciation	$	(4,655)	$	(3,389)
Prepaid expenses		(358)		(232)
Other		(57)		(93)
		(5,070)		(3,714)
Deferred tax assets
Investment impairment		30,680		30,767
Gift cards		969		940
Deferred revenues		355		332
Accrual for employee benefits and severance		1,246		884
Stock option expense		55		—
Investment in partnership		115,057		—
Tax Receivable Agreement		7,387		—
AMT credit		1,049		549
Net operating loss carryforward		8,512		9,926
Claims reserves		547		444
Intangible assets		70		54
Goodwill		1,898		2,264
Deferred book gain		1,337		1,472
Other reserves		5,339		4,820
		174,501		52,452
Valuation allowance		(43,553)		(42,504)
Net deferred tax assets	$	125,878	$	6,234