10. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of components of income tax expense

	December 31,
	2015		2014			2013
Federal current tax	$	237	$	–		$	–
State current tax		1,705		1,283			643
Other current tax		28		29			(39	)
Federal deferred tax		3,625		869			3,794
State deferred tax		412		(214	)		(888	)
Income tax expense	$	6,007	$	1,967		$	3,510

Reconciliation of income tax expense

	Years Ended December 31,
	2015		2014		2013
Federal tax		34.00%		34.00%		34.00%
State franchise tax, net of federal benefit		8.50%		-3.64%		-14.20%
Other Non deductible expenses		-0.01%		0.00%		0.07%
Meals and entertainment		1.75%		4.85%		1.98%
Noncontrolling Interest in Partnerships		-2.16%		-2.88%		-1.48%
Equity compensation		-1.74%		-8.72%		35.39%
Changes in valuation allowance		-17.32%		24.52%		-17.88%
Return-to-provision		3.29%		-9.57%		-1.96%
Deferred true-ups and other		13.41%		16.34%		0.00%
Uncertain tax positions		0.01%		-3.67%		-2.92%
Expiring net operating losses		1.28%		2.61%		26.64%
Income tax expense		41.01%		53.85%		59.64%

Schedule of deferred tax assets and liabilities

	December 31,
	2015			2014
Deferred tax assets:
Net operating losses	$	78,912		$	87,709
Accrued expenses		4,125			3,594
Straight-Line Rent Adjustment		11,263			8,897
Unfavorable contract liability		2,142			2,811
Equity compensation		846			253
Allowance for doubtful accounts		4,341			2,124
Other		1,092			1,891
Valuation Allowance		(3,841	)		(6,378	)
Total Deferred Tax Assets	$	98,880		$	100,901
Deferred tax liabilities:
Property Plant & Equipment		(8,582	)		(7,755	)
Goodwill		(18,617	)		(17,833	)
Intangibles		(12,088	)		(12,105	)
NAEM Reserve		(7,882	)		(6,441	)
Other		(4,747	)		(4,189	)
Total Deferred Tax Liabilities	$	(51,916	)	$	(48,323	)
Net Deferred Tax Asset	$	46,964		$	52,578

Schedule of unrecognized tax benefits

A reconciliation of the total gross amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands):

	December 31,
	2015			2014			2013
Balance at beginning of year	$	3,761		$	3,970		$	4,184
Decreases related to prior year tax positions		(3,667	)		–			(214	)
Expiration of the statute of limitations for the assessment of taxes		–			(209	)		–
Balance at end of year	$	94		$	3,761		$	3,970

Federal [Member]

Schedule of net operating loss carryforwards

Year Ended	Total Net Operating Loss Carryforwards		Amount Subject to 382 limitation
2017		3,356		–
2018		12,284		–
2019		7,178		–
2020		–		–
Thereafter		211,094		40,610
	$	233,912	$	40,610

California [Member]

Schedule of net operating loss carryforwards

Year Ended	Total Net Operating Loss Carryforwards
2016		3,683
2017		9,292
2018		–
2019		–
2020		–
Thereafter		18,247
	$	31,222