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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the provision for income taxes are as follows:
| Years Ended December 31,
($ in thousands) | 2018 |  | 2017 |  | 2016
Current |  |  |  |  |
Federal | $ | 18,864 |  |  | $ | 15,670 |  |  | $ | 12,790 |
State | 3,668 |  |  | 1,985 |  |  | 1,855 |
Total current tax expense (benefit) | 22,532 |  |  | 17,655 |  |  | 14,645 |
Deferred |  |  |  |  |
Federal | 5,901 |  |  | 20,895 |  |  | 5,489 |
State | 4,528 |  |  | 1,940 |  |  | 910 |
Total deferred tax expense (benefit) | 10,429 |  |  | 22,835 |  |  | 6,399 |
Total expense (benefit) for income taxes | $ | 32,961 |  |  | $ | 40,490 |  |  | $ | 21,044 |
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) | 2018 |  | 2017 |  | 2016
Tax at statutory rate | $ | 22,899 |  |  | 21 | % |  | $ | 28,150 |  |  | 35 | % |  | $ | 24,432 |  |  | 35 | %
State taxes, net of federal benefit | 6,450 |  |  | 6 |  |  | 3,548 |  |  | 4 |  |  | 2,010 |  |  | 3 |
Effect of U.S. tax reform (the Tax Act) | — |  |  | — |  |  | 13,074 |  |  | 16 |  |  | — |  |  | — |
Effect of net income (loss) attributable to noncontrolling interests | (171 | ) |  | — |  |  | (1,017 | ) |  | (1 | ) |  | (91 | ) |  | — |
Change in valuation allowance | 4,508 |  |  | 4 |  |  | (2,613 | ) |  | (3 | ) |  | (5,125 | ) |  | (7 | )
Other, net | (725 | ) |  | (1 | ) |  | (652 | ) |  | (1 | ) |  | (182 | ) |  | (1 | )
Income tax expense (benefit) | $ | 32,961 |  |  | 30 | % |  | $ | 40,490 |  |  | 50 | % |  | $ | 21,044 |  |  | 30 | %
The provision for income taxes reflects U.S. federal, state and local taxes at an effective tax rate of 30%, 50% and 30% for the years ended December 31, 2018, 2017 and 2016, respectively. The Company's tax position for the years ended December 31, 2018, 2017 and 2016 was impacted by changes in the valuation allowance related to the unrealized and realized gains and losses on the Company’s investments. On December 22, 2017, the Tax Cuts and Jobs Act (the Tax Act) was enacted which made significant changes to federal income tax law, including reducing the statutory corporate income tax rate to 21 percent from 35 percent. The SEC issued Staff Accounting Bulletin No. 118, which specifies, among other things, that reasonable estimates of the income tax effects of the Tax Act should be used, if determinable. The accounting for these elements of the 2017 Tax Act is complete. 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 are as follows:
| December 31,
($ in thousands) | 2018 |  | 2017
Deferred tax assets: |  |  |
Intangible assets | $ | 7,352 |  |  | $ | 10,706 |
Net operating losses | 14,750 |  |  | 16,769 |
Compensation accruals | 11,728 |  |  | 7,681 |
Investments | 7,557 |  |  | 7,322 |
Capital losses | 512 |  |  | 870 |
Other | 942 |  |  | 1,675 |
Gross deferred tax assets | 42,841 |  |  | 45,023 |
Valuation allowance | (8,439 | ) |  | (3,088 | )
Gross deferred tax assets after valuation allowance | 34,402 |  |  | 41,935 |
Deferred tax liabilities: |  |  |
Intangible assets | (12,286 | ) |  | (9,507 | )
Gross deferred tax liabilities | (12,286 | ) |  | (9,507 | )
Deferred tax assets, net | $ | 22,116 |  |  | $ | 32,428 |
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 $8.4 million and $3.1 million at December 31, 2018 and 2017, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets. As of December 31, 2018, 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, 2018, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $6.3 million deferred tax asset. The state net operating loss carry-forwards are scheduled to begin to expire in 2019. Internal Revenue Code 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. During the year ended December 31, 2009, the Company incurred an ownership change as defined in Section 382. At December 31, 2018, the Company has pre-change losses represented by deferred tax assets totaling $11.6 million. The utilization of these assets is subject to an annual limitation of $1.1 million. The Company has had no unrecognized tax benefits activity for the years ended December 31, 2018, 2017 and 2016. The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. The Company recorded no interest or penalties related to unrecognized tax benefits at December 31, 2018, 2017 and 2016. The earliest federal tax year that remains open for examination is 2015. The earliest open years in the Company’s major state tax jurisdictions are 2010 for Connecticut and 2015 for all of the Company's remaining state tax jurisdictions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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