8 .	Income Taxes

We recognize deferred tax assets and liabilities for future tax consequences attributable to differences between our financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. We recognize the effect on deferred tax assets and liabilities resulting from a change in tax rates in income in the period that includes the date of the change.

Under certain circumstances, we recognize liabilities in our financial statements for positions taken on uncertain tax issues.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others

may

be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, we believe it is more likely than

not

that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are

not

offset or aggregated with other positions. Tax positions that meet the more-likely-than-

not

recognition threshold are measured as the largest amount of tax benefit that is more than

percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as income tax expense in the statement of operations.

Federal and state and local income tax expense (benefit) is summarized as follows (in thousands):

	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	42,531		$	4,633		$	-
State and local		11,447			3,261			2,730
State and local - reserve for uncertain tax positions		(63	)		757			(698	)
Current income tax expense		53,915			8,651			2,032
Deferred:
Federal (1)		17,385			(81,666	)		38,214
State and local		5,547			4,341			3,172
Deferred income tax expense (benefit)		22,932			(77,325	)		41,386
Total income tax expense (benefit)	$	76,847		$	(68,674	)	$	43,418

(

)

Includes a federal tax benefit of

$146.0

million in

2017

from the restatement of deferred taxes resulting from the reduction of the corporate tax rate due to the enactment of the TCJA.

Significant components of our deferred tax liabilities and assets are as follows (in thousands):

	December 31,
	2018		2017
Deferred tax liabilities:
Net book value of property and equipment	$	21,097	$	18,131
Broadcast licenses, goodwill and other intangibles		286,299		272,330
Total deferred tax liabilities		307,396		290,461

Deferred tax assets:
Liability for accrued vacation		1,461		1,438
Liability for accrued bonus		3,993		2,391
Allowance for doubtful accounts		1,358		1,170
Liability under health and welfare plan		639		608
Liability for pension plan		8,437		9,611
State and local operating loss carryforwards		2,358		4,719
Alternative minimum tax carryforwards		-		3,925
Acquisition costs		1,946		2,104
Restricted stock		2,083		2,636
Other		231		244
Total deferred tax assets		22,506		28,846
Valuation allowance for deferred tax assets		-		(75	)
Net deferred tax assets		22,506		28,771

Deferred tax liabilities, net of deferred tax assets	$	284,890	$	261,690

We have an aggregate of approximately

$51.9

million of various state operating loss carryforwards. We project to have taxable income in the carryforward periods. Therefore, we believe that it is more likely than

not

that our state net operating loss carryforwards will be fully utilized.

A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements for the years ended

December 31, 2018,

2017

and

2016

is as follows (in thousands):

	Year Ended December 31,
	2018			2017			2016
Statutory federal rate applied to income before income tax expense	$	60,406		$	67,647		$	36,992
Current year permanent items		3,065			2,408			1,830
State and local taxes, net of federal tax benefit		14,004			7,889			5,056
Change in valuation allowance		(75	)		(1,457	)		(151	)
Reserve for uncertain tax positions		(63	)		757			(698	)
Rate change due to enactment of tax reform		-			(145,997	)		-
Other items, net		(490	)		79			389
Income tax expense (benefit) as recorded	$	76,847		$	(68,674	)	$	43,418

Effective income tax rate		26.7%			35.5%			41.1%

As of each year end, we are required to adjust our pension liability to an amount equal to the funded status of our pension plans with a corresponding adjustment to other comprehensive income on a net of tax basis. During

2018,

we decreased our recorded non-current pension liability by

$1.1

million and recognized other comprehensive income of

$0.8

million, net of a

$0.3

million tax expense. During

2017,

we increased our recorded non-current pension liability by

$7.4

million and recognized other comprehensive loss of

$4.5

million, net of a

$2.9

million tax benefit. During

2016,

we increased our recorded non-current pension liability by

$0.6

million and recognized other comprehensive loss of

$0.4

million, net of a

$0.2

million tax benefit.

2018,

2017

and

2016,

we made income tax payments (net of refunds) of

$34.2

million,

$2.0

million and

$14.6

million, respectively. At

December 31, 2018

and

2017,

we had current prepaid income taxes of approximately

$0.0

million and

$13.8

million, respectively.

We prescribe a recognition threshold and measurement attribution for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For benefits to be recognized, a tax position must be more likely than

not

to be sustained upon examination by taxing authorities.

We file income tax returns in the U.S. federal and multiple state jurisdictions. With few exceptions, we are

longer subject to U.S. federal, or state and local tax examinations by tax authorities for years prior to

2011.

This extended open adjustment period is due to material amounts of net operating loss carryforwards, which exist at the federal level and in multiple-state jurisdictions arising from the

2009

and

2011

tax years.