Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of income tax expense (benefit)

The components of income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands):


	For the Years Ended December 31,
	2017		2016		2015
Current:
Federal	$	80	$	542	$	253
State		296		364		183
Total current		376		906		436

Deferred:
Federal		38,303		(93,383)		—
State		1,589		(17,044)		—
Total deferred		39,892		(110,427)		—
Total income tax expense (benefit)	$	40,268	$	(109,521)	$	436

Components of deferred income tax assets and liabilities

Significant components of deferred income tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in thousands):


	December 31,
	2017		2016
Deferred tax assets:
Net operating loss carryforward and credits	$	32,829	$	47,529
Impairment charges		28,926		48,311
Other inventory valuation adjustments		7,929		13,819
Other reserves and accruals		3,366		5,028
Land development reserves		3,180		5,270
Executive incentive compensation		1,875		2,352
Total deferred tax assets		78,105		122,309
Valuation allowance for deferred tax assets		—		—
Deferred tax assets, net of valuation allowance		78,105		122,309

Deferred tax liabilities:
Deferred gain		(3,495)		(6,246)
Goodwill		(1,524)		(1,013)
State taxes		(1,426)		(2,800)
Depreciation		(844)		(1,222)
Capitalized expenses		(451)		(771)
Total deferred tax liabilities		(7,740)		(12,052)
Deferred tax assets, net	$	70,365	$	110,257

Reconciliation of income tax expense (benefit)

A reconciliation of income tax expense (benefit) to the expected income tax expense (benefit) at the federal statutory rate of 35% for each of the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands):


	For the Years Ended December 31,
	2017		2016		2015
Income tax expense computed at statutory rate	$	6,416	$	13,155	$	4,320
State income tax expense, net of federal benefit		506		1,201		1,452
Remeasurement of deferred tax assets (lower federal rate)		32,484		—		—
Change in valuation allowance on deferred tax assets		—		(124,525)		(5,336)
Change in state rate		395		688		—
Share-based compensation costs		470		—		—
Other		(3)		(40)		—
Income tax expense (benefit)	$	40,268	$	(109,521)	$	436