INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

For the years ended December 31, 2018, 2017 and 2016, we recognized income tax expense comprised of the following (in thousands):

	December 31,
	2018			2017			2016
Federal current tax	$	(765	)	$	871		$	88
State current tax	7,263			4,906			914
Other current tax	20			23			28
Federal deferred tax	(2,020		)	21,389			2,539
State deferred tax	(4,104		)	(2,879		)	863
Income tax expense (benefit)	$	394		$	24,310		$	4,432

Schedule of reconciliation of income tax expense

A reconciliation of the statutory U.S. federal rate and effective rates is as follows:

	Years Ended December 31,
	2018					2017					2016
Federal tax	$	8,256		21.00	%	$	8,971		34.00	%	$	4,229		34.00	%
State franchise tax, net of federal benefit	1,332			3.39	%	1,799			6.82	%	224			1.80	%
Other Non deductible expenses	471			1.20	%	91			0.35	%	(11		)	(0.09	)%
Changes in valuation allowance	1,760			4.48	%	(1,045		)	(3.96	)%	585			4.70	%
Tax Cuts and Jobs Act	—			—	%	13,527			51.27	%	—			—	%
Gain on change in control	(8,303		)	(21.12	)%	—			—	%	—			—	%
Deferred true-ups and other	(4,254		)	(10.82	)%	(194		)	(0.74	)%	(3,142		)	(25.25	)%
Other reconciling items	1,132			2.88	%	1,161			4.39	%	2,547			20.47	%
Income tax expense (benefit)	$	394		1.00	%	$	24,310		92.13	%	$	4,432		35.64	%

Schedule of deferred tax assets and liabilities

Our deferred tax assets and liabilities comprise the following (in thousands):

	December 31,
Deferred tax assets:	2018			2017
Net operating losses	$	46,875		$	47,212
Accrued expenses	3,421			3,242
Straight-Line rent adjustment	9,811			7,749
Unfavorable contract liability	1,354			1,288
Equity compensation	1,065			871
Allowance for doubtful accounts	14,850			8,720
Other	2,815			2,504
Valuation allowance	(5,810		)	(4,049		)
Total Deferred Tax Assets	$	74,381		$	67,537
Deferred tax liabilities:
Property and equipment	(6,194		)	(373		)
Goodwill	(19,780		)	(17,568		)
Intangibles	(8,110		)	(7,839		)
Non accrual experience method reserve	(1,446		)	(2,778		)
Other	(7,345		)	(8,127		)
Total Deferred Tax Liabilities	$	(42,875	)	$	(36,685	)
Net Deferred Tax Asset	$	31,506		$	30,852

Schedule of unrecognized tax benefits

A reconciliation of the total gross amounts of unrecognized tax benefits for the years ended as follows (in thousands):

	December 31,
	2018		2017			2016
Balance at beginning of year	$	3,615	$	3,861		$	94
Increases related to prior year tax positions	896		1			3,861
Increases related to current year tax positions	111		—			—
Expiration of the statute of limitations for the assessment of taxes	—		—			(94		)
Increase (decrease) related to change in rate	7		(247		)	—
Balance at end of year	$	4,629	$	3,615		$	3,861