Note 4 - Income Taxes

The income tax (expense) benefit recorded for the three and six months ended June 30, 2018, and 2017, differs from the amounts that would be provided by applying the statutory United States federal income tax rate to income or loss before income taxes primarily due to the effect of state income taxes, excess tax benefits and deficiencies from share-based payment awards, changes in valuation allowances, and accumulated impacts of other smaller permanent differences. The quarterly rate can also be affected by the proportional impacts of forecasted net income or loss as of each period end presented.

The provision for income taxes for the three and six months ended June 30, 2018, and 2017, consisted of the following:



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Current portion of income tax (expense) benefit:
Federal	$	—		$	4,607		$	—		$	(2,832	)
State	40			2,439			(585		)	(1,403		)
Deferred portion of income tax (expense) benefit	861			64,015			(97,505		)	30,790
Income tax (expense) benefit	$	901		$	71,061		$	(98,090	)	$	26,555
Effective tax rate	(5.5		)%	37.2		%	22.7		%	36.9		%

The enactment of the 2017 Tax Act on December 22, 2017, reduced the Company’s federal tax rate for 2018 and future years from 35 percent to 21 percent. Although the Company believes it has properly analyzed the tax accounting impacts of the 2017 Tax Act, it will continue to monitor provisions with discrete rate impacts, such as the limitation on executive compensation for subsequent events and guidance within the one year measurement period. There are no new estimates or finalized income tax items associated with the 2017 Tax Act included in income tax expense for the three or six months ended June 30, 2018.

On a year-to-date basis, a change in the Company’s effective tax rate between reporting periods will generally reflect differences in its estimated highest marginal state tax rate due to changes in the composition of income or loss from Company activities, including divestitures, among multiple state tax jurisdictions. For the three months ended June 30, 2018, the decrease in the effective tax rate year-over-year also reflects the cumulative effects of property divestitures in higher marginal rate states in 2018. Cumulative effects of state tax rate changes are reflected in the period legislation is enacted. Excess tax benefits and deficiencies from share-based payment awards impact the Company’s effective tax rate between periods.

In 2017, the Company re-evaluated various factors affecting deferred tax assets related to net operating losses and tax credits, and determined utilization would be appropriate. The change in the current portion of income tax (expense) benefit between periods reflects the effect of this determination. The Company is generally no longer subject to United States federal or state income tax examinations by tax authorities for years before 2013.