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Note 13 - Income Taxes | 12 Months Ended
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Dec. 31, 2015
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
(13) | Income Taxes
Income Tax Provision Income tax provision from continuing operations was as follows (in thousands):
Year Ended December 31, |  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 58,408 |  |  | $ | 56,342 |  |  | $ | 46,727 |
State |  |  | 14,572 |  |  |  | 7,944 |  |  |  | 5,539 |
|  |  | 72,980 |  |  |  | 64,286 |  |  |  | 52,266 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 6,046 |  |  |  | 10,433 |  |  |  | 9,010 |
State |  |  | 679 |  |  |  | 236 |  |  |  | (702 | )
|  |  | 6,725 |  |  |  | 10,669 |  |  |  | 8,308 |
Total |  | $ | 79,705 |  |  | $ | 74,955 |  |  | $ | 60,574 |
At December 31, 2015 and 2014, we had income taxes receivable of $23.8 million and $5.6 million, respectively, included as a component of other current assets in our Consolidated Balance Sheets. The reconciliation between amounts computed using the federal income tax rate of 35% and our income tax provision from continuing operations is shown in the following tabulation (in thousands):
Year Ended December 31, |  | 2015 |  |  | 2014 |  |  | 2013 |
Federal tax provision at statutory rate |  | $ | 91,947 |  |  | $ | 73,673 |  |  | $ | 58,026 |
State taxes, net of federal income tax benefit |  |  | 9,357 |  |  |  | 6,526 |  |  |  | 3,141 |
Equity investment basis difference |  |  | 11,048 |  |  |  | 1,422 |  |  |  | — |
Non-deductible items |  |  | 882 |  |  |  | 1,766 |  |  |  | 1,010 |
Permanent differences related to the employee stock purchase program |  |  | 156 |  |  |  | 68 |  |  |  | 55 |
Net change in valuation allowance |  |  | (3,303 | ) |  |  | (4,121 | ) |  |  | (554 | )
General business credits |  |  | (29,093 | ) |  |  | (4,002 | ) |  |  | (440 | )
Other |  |  | (1,289 | ) |  |  | (377 | ) |  |  | (664 | )
Income tax provision |  | $ | 79,705 |  |  | $ | 74,955 |  |  | $ | 60,574 |
Deferred Taxes Individually significant components of the deferred tax assets and (liabilities) are presented below (in thousands):
December 31, |  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred revenue and cancellation reserves |  | $ | 39,323 |  |  | $ | 31,539 |
Allowances and accruals, including state tax carryforward amounts |  |  | 43,185 |  |  |  | 29,198 |
Interest on derivatives |  |  | 206 |  |  |  | 678 |
Goodwill |  |  | 2,581 |  |  |  | 2,668 |
Capital loss carryforward |  |  | 10,414 |  |  |  | 10,711 |
Valuation allowance |  |  | (5,360 | ) |  |  | (8,663 | )
Total deferred tax assets |  |  | 90,349 |  |  |  | 66,131 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Inventories |  |  | (21,313 | ) |  |  | (19,356 | )
Goodwill |  |  | (31,258 | ) |  |  | (21,320 | )
Property and equipment, principally due to differences in depreciation |  |  | (84,355 | ) |  |  | (67,271 | )
Prepaid expenses and other |  |  | (6,552 | ) |  |  | (3,582 | )
Total deferred tax liabilities |  |  | (143,478 | ) |  |  | (111,529 | )
Total |  | $ | (53,129 | ) |  | $ | (45,398 | )
We consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. As of December 31, 2015, we had a $5.4 million valuation allowance recorded associated with our deferred tax assets. The majority of this allowance is associated with capital losses from the sale of corporate entities in prior years. The valuation allowance decreased $3.3 million in the current year primarily as a result of our equity investment in a partnership with U.S. Bancorp Community Development Corporation. See also Note 18. As of December 31, 2015, we evaluated the availability of projected capital gains and determined that it continues to be unlikely the remaining capital loss carryforward would be fully utilized. We will continue to evaluate if it is more likely than not that we will realize the benefits of these deductible differences. However, additional valuation allowance amounts could be recorded in the future if estimates of taxable income during the carryforward period are reduced. At December 31, 2015, we had a number of state tax NOL carryforward amounts totaling approximately $2.0 million, tax effected, with expiration dates through 2035. We believe that it is more likely than not that the benefit from certain state NOL carryforward amounts will not be realized. In recognition of this risk, we have provided a valuation allowance of $2.0 million on the deferred tax assets relating to these state NOL carryforwards. Additionally, we have $2.2 million, tax effected, in state tax credit carryforwards with expiration dates through 2025. We believe it is more likely than not that the benefits from these state tax credit carryforwards will be realized. We early adopted the guidance, ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes (Topic 740)”, which simplifies the accounting for deferred taxes in a classified statement of financial position and requires all deferred taxes to be presented as non-current. Adoption of this guidance resulted in a reclassification of our net current deferred tax liability to the net non-current deferred tax liability in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Unrecognized Tax Benefits The following is a reconciliation of our unrecognized tax benefits (in thousands):
Balance, December 31, 2013 |  | $ | — |
Acquired with acquisition |  |  | 1,495 |
Balance, December 31, 2014 |  |  | 1,495 |
Decrease related to tax positions taken - prior year |  |  | (464 | )
Balance, December 31, 2015 |  | $ | 1,031 |
The unrecognized tax benefits recorded were acquired as part of the acquisition of DCH. We recorded a tax indemnification asset related to the unrecognized tax benefit as we determined the amount would be recoverable from the seller. Because we anticipate settlements and resulting cash payments related to the unrecognized tax benefits within the next twelve months, these amounts are included as a component of accrued liabilities in our Consolidated Balance Sheets. We did not have any activity during 2013 related to unrecognized tax benefits. Open tax years at December 31, 2015 included the following:
Federal |  |  | 2012 | - | 2015 |
18 states |  |  | 2011 | - | 2015 |

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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