Components of income tax (benefit) expense were as follows (in thousands):

 

		Year Ended December 31,
		2019				2018				2017
Current		$	(11,092	)		$	35			$	(12,786	)
Deferred			(64,102	)			500				217
Total income tax (benefit) expense		$	(75,194	)		$	535			$	(12,569	)

 

 

The reconciliation of income taxes computed at the U.S. federal statutory tax rate to our income tax (benefit) expense is as follows (in thousands):

 

		Year Ended December 31,
		2019				2018				2017
Income tax (benefit) expense at the federal statutory rate		$	(233	)		$	52,366			$	23,490
Compensation adjustments			971				457				664
State income taxes			(175	)			560				63
Uncertain tax position			(11,523	)			—				—
Impact of U.S. tax reform			—				487				105,933
Gain on exchange of debt			—				—				(24,981	)
Valuation allowance			(64,704	)			(53,980	)			(118,643	)
Other			470				645				905
Total income tax (benefit) expense		$	(75,194	)		$	535			$	(12,569	)

 

Our effective tax rate for the years  and  differed from the applicable federal statutory rate of for and and for primarily due to the impact of the valuation allowance on our deferred tax assets, which is discussed below.  As a result, effective tax rates for the years presented above are meaningful

 

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows (in thousands):

 

		December 31,
		2019				2018
Deferred tax liabilities:
Property and equipment		$	21,647			$	—
Derivatives			—				11,139
Investment in non-consolidated entity			14,716				6,875
Other			2,283				812
Total deferred tax liabilities			38,646				18,826
Deferred tax assets:
Property and equipment			—				3,934
Derivatives			1,409				—
Asset retirement obligations			76,924				65,811
Federal net operating losses			15,265				10,039
State net operating losses			7,393				7,133
Interest expense limitation carryover			48,458				41,814
Share-based compensation			965				583
Valuation allowance			(54,436	)			(117,764	)
Other			6,584				7,091
Total deferred tax assets			102,562				18,641
Net deferred tax assets (liabilities)		$	63,916			$	(185	)

 

 

 

As of we have a current income tax receivable of  million which relates primarily to a net operating loss (“NOL”) carryback claim for that was carried back to prior years.  As of we had current income taxes receivable of million which primarily relates to our NOL carryback claims for the years and that were carried back to prior years.  These carryback claims, in addition to the claim, were made pursuant to IRC Section (f) (related to rules regarding “specified liability losses”), which permits certain platform dismantlement, well abandonment and site clearance costs to be carried back years.  During we received refunds of million and made income tax payments of million.  Additionally, we received million in interest income associated with the refunds in   During  we received refunds of million and made income tax payments of million.  During we received refunds of million and made income tax payments of million.  The refunds received in and were primarily due to the net operating loss carryback claims under Code Section (f). 

 

 

 

The table below presents the details of our net operating loss and interest expense limitation carryover as of  (in thousands):

 

		Amount				Expiration Year
Federal net operating loss		$	72,692				2037
State net operating loss			122,155				2026-2038
Interest expense limitation carryover			223,928				N/A

 

 

During  and we recorded a decrease in the valuation allowance of  million and million, respectively, related to federal and state deferred tax assets.  Deferred tax assets are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods.  The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions in which those temporary differences or net operating losses are deductible.   In assessing the need for a valuation allowance on our deferred tax assets, we consider whether it is more likely than that some portion or all of them will be realized.  

   

Throughout the Company has been assessing the realizability of our deferred tax assets by considering positive factors such as, when considering the Company’s results for the months ended and the Company has cumulative pre-tax income.  Based on the assessment, we determined that the Company’s ability to maintain long-term profitability despite near-term changes in commodity prices and operating costs demonstrated that a portion of the Company’s net deferred tax assets would more likely than be realized.  During we released  million of the valuation allowance, resulting in an income tax benefit in   The portion of the valuation allowance remaining relates to state net operating losses and the disallowed interest limitation carryover under IRC section (j).  As of the Company’s valuation allowance was  million.

 

On the Tax Cuts and Jobs Act (“TCJA”) was enacted into law and we applied the guidance in Staff Accounting Bulletin when accounting for the enactment-date effects of the TCJA in and   As a result of the enactment of the TCJA, our net deferred tax assets and its respective valuation allowance were adjusted downwards by million as of Our Consolidated Statement of Income, Consolidated Balance Sheet and Consolidated Statement of Cash Flow for the year were materially impacted as a result of the provisional re-measurement of our net deferred tax assets and its related valuation allowance.  

 

 

The table below sets forth the beginning and ending balance of the total amount of unrecognized tax benefits.  The settlement of our net operating loss carryback claims with the IRS effectively allowed us to also settle our uncertain tax position which resulted in a change in our unrecognized tax benefits and materially impacted our income tax benefit.

 

Reconciliation of the balances of our uncertain tax positions are as follows (in thousands):

 

		December 31,
		2019				2018
Balance, beginning of period		$	9,482			$	9,482
Decrease during the period			(9,482	)			—
Balance, end of period		$	—			$	9,482

 

We recognize interest and penalties related to uncertain tax positions in income tax expense.  For  and the amounts recognized in income tax expense were immaterial.

 

 

The tax years from  through  remain open to examination by the tax jurisdictions to which we are subject.