Income Taxes

The federal and state provision (benefit) for income taxes was $0.0 million for the years ended December 31, 2017, 2016 and 2015.

The total income tax provision (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 35.0% to net income (loss) before income taxes as a result of the following:



	Year Ended December 31,
	2017		2016		2015
Statutory tax (benefit) expense	(35.0	)%	(35.0	)%	(35.0	)%
Increase (decrease) in taxes resulting from:
Stock-based compensation	—		0.2		0.1
Nondeductible expenses	0.2		0.4		0.2
Tax Cuts and Jobs Act impact	93.2		—		—
Valuation allowance	(58.4	)	34.4		34.7
	0.0	%	0.0	%	0.0	%

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets were as follows:



	As of December 31,
	2017			2016
	(In thousands)
Deferred tax asset:
Carrying values of partner companies and other holdings	$	69,751		$	95,134
Tax loss and credit carryforwards	58,138			82,775
Accrued expenses	766			1,183
Stock-based compensation	814			1,763
Other	967			1,310
	130,436			182,165
Valuation allowance	(130,436		)	(182,165		)
Net deferred tax asset	$	—		$	—

As of December 31, 2017, the Company and its subsidiaries consolidated for tax purposes had federal net operating loss carryforwards of approximately $254.3 million. These carryforwards expire as follows:



	Total
	(In thousands)
2018	$	—
2019	—
2020	—
2021	3,728
2022 and thereafter	250,572
	$	254,300

In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (i) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (ii) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (iii) creating a new limitation on deductible interest expense; and (iv) changing rules related to uses and limitations of net operating carryforwards created in tax years beginning after December 31, 2017. The most significant impact on the Company's consolidated financial statements is a reduction of approximately $82.5 million in deferred tax assets which is offset by changes to the Company’s valuation allowance.

In assessing the recoverability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has determined that it is more likely than not that certain future tax benefits may not be realized as a result of current and future income. Accordingly, a valuation allowance has been recorded against substantially all of the Company’s deferred tax assets.

The Company recognizes in its Consolidated Financial Statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. All uncertain tax positions relate to unrecognized tax benefits that would impact the effective tax rate when recognized.

The Company does not expect any material increase or decrease in its income tax expense, in the next twelve months, related to examinations or changes in uncertain tax positions.

There were no changes in the Company’s uncertain tax positions for the years ended December 31, 2017, 2016 and 2015.

The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Tax years 2014 and forward remain open for examination for federal tax purposes and the Company’s more significant state tax jurisdictions. To the extent utilized in future years’ tax returns, net operating loss carryforwards at December 31, 2017 will remain subject to examination until the respective tax year is closed. The Company recognizes penalties and interest accrued related to income tax liabilities in income tax benefit (expense) in the Consolidated Statements of Operations.