Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

Income tax expense (benefit) is comprised of the following:

	Year Ended December 31,
(In thousands)	2019			2018		2017
Current taxes:
Federal	$	9,832		$	29	$	771
State		2,656			1,857		373
Deferred taxes:
Federal		(46,972	)		20,136		37,565
State		(5,104	)		5,024		4,844
Total	$	(39,588	)	$	27,046	$	43,553

Significant Components of Net Deferred Tax Asset and Liability

The following table sets forth the significant components of our net deferred tax asset and liability as of December 31, 2019 and 2018:

(In thousands)	December 31, 2019			December 31, 2018
Deferred tax asset:
Accruals and reserves	$	1,913		$	769
Deferred compensation		787			496
Share-based payments		5,035			2,111
Lease liability		9,262			—
Section 163(j) interest limitation		5,647			—
Interest rate swap		4,147			—
Net operating loss carryforwards		9,301			9,430
Capital loss carryforwards		7,844			7,620
Tax credits		—			6,437
		43,936			26,863
Valuation allowance		(14,435	)		(10,457	)
	$	29,501		$	16,406
Deferred tax liability:
Property and equipment	$	(8,161	)	$	(2,600	)
Intangible assets		(170,894	)		(14,125	)
Right-of-use assets		(10,779	)		—
Prepaid expenses		(513	)		—
		(190,347	)		(16,725	)
Net long-term deferred tax liability	$	(160,846	)	$	(319	)

Difference between Income Tax Expense Computed using Statutory Federal Income Tax Rate and effective rate

The difference between income tax expense computed using the statutory federal income tax rate and the effective rate is as follows:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Statutory federal income tax (benefit)	$	(68,546	)	$	26,239		$	36,674
State income taxes, less federal income tax benefit		(5,103	)		6,261			5,119
Permanent items		1,653			1,496			1,750
Goodwill impairment		28,771			—			—
Change in valuation allowance		2,968			(1,005	)		—
Share-based compensation		304			(6,378	)		(6,441	)
Tax Act adjustments		—			—			7,442
Change in uncertain tax position liability		55			(644	)		—
Prior year tax adjustments		(494	)		(590	)		(544	)
Net impact of foreign operations		(9	)		990			—
State income tax credits		813			677			(447	)
Income tax expense (benefit)	$	(39,588	)	$	27,046		$	43,553

Changes in Unrecognized Tax Benefits

The aggregate changes in the balance of unrecognized tax benefits, exclusive of interest, were as follows:

(In thousands)
Unrecognized tax benefits at December 31, 2017	$	644
Decreases based upon settlements with tax authorities		(644	)
Unrecognized tax benefits at December 31, 2018	$	—
Increases related to Nutrisystem Merger		1,006
Increases related to current year tax positions		8
Increases related to prior year tax positions		66
Decreases due to lapse of statute of limitations		(19	)
Unrecognized tax benefits at December 31, 2019	$	1,061