
	Years Ended December 31,
(in thousands)	2020		2019		2018
Current
Federal	$	27,852	$	23,066	$	18,864
State	9,751		6,129		3,668
Total current tax expense (benefit)	37,603		29,195		22,532
Deferred
Federal	3,899		3,535		5,901
State	2,433		2,447		4,528
Total deferred tax expense (benefit)	6,332		5,982		10,429
Total expense (benefit) for income taxes	$	43,935	$	35,177	$	32,961

The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated:


	Years Ended December 31,
(in thousands)	2020				2019				2018
Tax at statutory rate	$	34,419	21	%	$	29,544	21	%	$	22,899	21	%
State taxes, net of federal benefit	9,775		6		6,859		5		6,450		6


Nondeductible compensation	2,686		2		2,080		2		2,182		2
Effect of net (income) loss attributable to noncontrolling interests	(1,939)		(1)		(968)		(1)		(171)		—
Change in valuation allowance	(1,383)		(1)		(1,330)		(1)		4,508		4
Other, net	377		—		(1,008)		(1)		(2,907)		(3)
Income tax expense (benefit)	$	43,935	27	%	$	35,177	25	%	$	32,961	30	%

The provision for income taxes reflects U.S. federal, state and local taxes at an effective tax rate of 27%, 25% and 30% for the years ended December 31, 2020, 2019 and 2018, respectively. The Company's tax position for the years ended December 31, 2020, 2019 and 2018 was impacted by changes in the valuation allowance related to the unrealized and realized gains and losses on the Company's investments.

Deferred taxes resulted from temporary differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences were as follows:


	December 31,
(in thousands)	2020		2019
Deferred tax assets:
Intangible assets	$	3,237	$	5,279
Net operating losses	13,490		13,704
Compensation accruals	12,971		12,789
Lease liability	5,835		6,897
Investments	3,758		5,561
Capital losses	1,255		773
Other	984		581
Gross deferred tax assets	41,530		45,584
Valuation allowance	(6,107)		(6,844)
Gross deferred tax assets after valuation allowance	35,423		38,740
Deferred tax liabilities:
Intangible assets	(18,170)		(15,252)
Right of use asset	(4,328)		(5,263)
Fixed assets	(1,900)		(1,372)
Other investments	(1,487)		(975)
Gross deferred tax liabilities	(25,885)		(22,862)
Deferred tax assets, net	$	9,538	$	15,878

At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of its deferred tax assets. The Company maintained a valuation allowance in the amount of $6.1 million and $6.8 million at December 31, 2020 and 2019, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets.

As of December 31, 2020, the Company had net operating loss carry-forwards for federal income tax purposes represented by an $8.5 million deferred tax asset. The related federal net operating loss carry-forwards are scheduled to begin to expire in the year 2031. As of December 31, 2020, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $5.0 million deferred tax asset. The state net operating loss carry-forwards are scheduled to begin to expire in 2021.

Internal Revenue Code Section 382 ("Section 382") limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation's stock involving a 50 percentage point increase in ownership by 5% or larger stockholders. At December 31, 2020, the Company had pre-change losses represented by deferred tax assets totaling $9.5 million that are subject to Section 382 limits. The utilization of these assets is subject to an annual limitation of $1.1 million.


	Years Ended December 31,
(in thousands)	2020		2019		2018
Balance, beginning of year	$	1,172	$	—	$	—
Decrease related to tax positions taken in prior years	(365)		—		—
Increase related to positions taken in the current year	214		1,172		—
Balance, end of year	$	1,021	$	1,172	$	—

If recognized, $0.8 million of the $1.0 million gross unrecognized tax benefit balance at December 31, 2020 would favorably impact the Company's effective income tax rate. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next 12 months.

The Company recognizes interest and penalties related to income tax matters within income tax expense. The Company recorded no interest or penalties related to unrecognized tax benefits at December 31, 2020, 2019 and 2018.