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10. INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of components of income tax expense | For the years ended December 31, 2017, 2016 and 2015, we recognized income tax expense comprised of the following (in thousands):
|  | December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Federal current tax |  | $ | 871 |  |  | $ | 88 |  |  | $ | 237 |
State current tax |  |  | 4,906 |  |  |  | 914 |  |  |  | 1,705 |
Other current tax |  |  | 23 |  |  |  | 28 |  |  |  | 28 |
Federal deferred tax |  |  | 21,389 |  |  |  | 2,539 |  |  |  | 3,625 |
State deferred tax |  |  | (2,879 | ) |  |  | 863 |  |  |  | 412 |
Income tax expense (benefit) |  | $ | 24,310 |  |  | $ | 4,432 |  |  | $ | 6,007 |
Schedule of reconciliation of income tax expense |
|  | Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Federal tax |  | $ | 8,971 |  |  |  | 34.00 | % |  | $ | 4,229 |  |  |  | 34.00 | % |  | $ | 4,979 |  |  |  | 34.00 | %
State franchise tax, net of federal benefit |  |  | 1,799 |  |  |  | 6.82 | % |  |  | 224 |  |  |  | 1.80 | % |  |  | 1,245 |  |  |  | 8.50 | %
Other Non deductible expenses |  |  | 91 |  |  |  | 0.35 | % |  |  | (11 | ) |  |  | -0.09 | % |  |  | (1 | ) |  |  | -0.01 | %
Changes in valuation allowance |  |  | (1,045 | ) |  |  | -3.96 | % |  |  | 585 |  |  |  | 4.70 | % |  |  | (2,536 | ) |  |  | -17.32 | %
Tax Cuts and Jobs Act |  |  | 13,527 |  |  |  | 51.27 | % |  |  | – |  |  |  | 0.00 | % |  |  | – |  |  |  | 0.00 | %
Deferred true-ups and other |  |  | (194 | ) |  |  | -0.74 | % |  |  | (3,142 | ) |  |  | -25.25 | % |  |  | 1,964 |  |  |  | 13.41 | %
Other reconciling items |  |  | 1,161 |  |  |  | 4.39 | % |  |  | 2,547 |  |  |  | 20.47 | % |  |  | 356 |  |  |  | 2.43 | %
Income tax expense (benefit) |  | $ | 24,310 |  |  |  | 92.13 | % |  | $ | 4,432 |  |  |  | 35.64 | % |  | $ | 6,007 |  |  |  | 41.02 | %
Schedule of deferred tax assets and liabilities | Our deferred tax assets and liabilities comprise the following (in thousands):
|  | December 31, |
Deferred tax assets: |  | 2017 |  |  | 2016 |
Net operating losses |  | $ | 47,212 |  |  | $ | 84,509 |
Accrued expenses |  |  | 3,242 |  |  |  | 4,400 |
Straight-Line rent adjustment |  |  | 7,749 |  |  |  | 10,750 |
Unfavorable contract liability |  |  | 1,288 |  |  |  | 2,114 |
Equity compensation |  |  | 871 |  |  |  | 950 |
Allowance for doubtful accounts |  |  | 8,720 |  |  |  | 6,033 |
Other |  |  | 2,504 |  |  |  | 1,357 |
Valuation allowance |  |  | (4,049 | ) |  |  | (4,428 | )
Total Deferred Tax Assets |  | $ | 67,537 |  |  | $ | 105,685 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (373 | ) |  |  | (6,994 | )
Goodwill |  |  | (17,568 | ) |  |  | (23,350 | )
Intangibles |  |  | (7,839 | ) |  |  | (12,066 | )
Non accrual experience method reserve |  |  | (2,778 | ) |  |  | (8,483 | )
Other |  |  | (8,127 | ) |  |  | (4,436 | )
Total Deferred Tax Liabilities |  | $ | (36,685 | ) |  | $ | (55,329 | )
Net Deferred Tax Asset |  | $ | 30,852 |  |  | $ | 50,356 |
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, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Balance at beginning of year |  | $ | 3,861 |  |  | $ | 94 |  |  | $ | 3,761 |
Increases (Decreases) related to prior year tax positions |  |  | 1 |  |  |  | 3,861 |  |  |  | (3,667 | )
Expiration of the statute of limitations for the assessment of taxes |  |  | – |  |  |  | (94 | ) |  |  | – |
Increase (Decreases) related to change in rate |  |  | (247 | ) |  |  | – |  |  |  | – |
Balance at end of year |  | $ | 3,615 |  |  | $ | 3,861 |  |  | $ | 94 |

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