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Note 13 - Income Taxes | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | (13) Income Taxes Income Tax Provision The income tax provision from continuing operations was as follows (in thousands):
Year Ended December 31, |  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 68,088 |  |  | $ | 58,408 |  |  | $ | 56,342 |
State |  |  | 13,884 |  |  |  | 14,572 |  |  |  | 7,944 |
|  |  | 81,972 |  |  |  | 72,980 |  |  |  | 64,286 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,893 |  |  |  | 6,046 |  |  |  | 10,433 |
State |  |  | (400 | ) |  |  | 679 |  |  |  | 236 |
|  |  | 4,493 |  |  |  | 6,725 |  |  |  | 10,669 |
Total |  | $ | 86,465 |  |  | $ | 79,705 |  |  | $ | 74,955 |
At December 31, 2016 and 2015, we had income taxes receivable of $2.4 million and $23.8 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, |  | 2016 |  |  | 2015 |  |  | 2014 |
Federal tax provision at statutory rate |  | $ | 99,233 |  |  | $ | 91,947 |  |  | $ | 73,673 |
State taxes, net of federal income tax benefit |  |  | 10,784 |  |  |  | 9,357 |  |  |  | 6,526 |
Equity investment basis difference |  |  | 9,470 |  |  |  | 11,048 |  |  |  | 1,422 |
Non-deductible items |  |  | 1,436 |  |  |  | 882 |  |  |  | 1,766 |
Permanent differences related to employee stock purchase program |  |  | 139 |  |  |  | 156 |  |  |  | 68 |
Net change in valuation allowance |  |  | (5,133 | ) |  |  | (3,303 | ) |  |  | (4,121 | )
General business credits |  |  | (27,950 | ) |  |  | (29,093 | ) |  |  | (4,002 | )
Other |  |  | (1,514 | ) |  |  | (1,289 | ) |  |  | (377 | )
Income tax provision |  | $ | 86,465 |  |  | $ | 79,705 |  |  | $ | 74,955 |
Deferred Taxes Individually significant components of the deferred tax assets and (liabilities) are presented below (in thousands):
December 31, |  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred revenue and cancellation reserves |  | $ | 49,332 |  |  | $ | 39,323 |
Allowances and accruals, including state NOL carryforward amounts |  |  | 49,074 |  |  |  | 43,185 |
Interest on derivatives |  |  | — |  |  |  | 206 |
Credits and other |  |  | 1,781 |  |  |  | 2,581 |
Capital loss carryforward |  |  | — |  |  |  | 10,414 |
Valuation allowance |  |  | (227 | ) |  |  | (5,360 | )
Total deferred tax assets |  |  | 99,960 |  |  |  | 90,349 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Inventories |  |  | (22,253 | ) |  |  | (21,313 | )
Goodwill |  |  | (41,107 | ) |  |  | (31,258 | )
Property and equipment, principally due to differences in depreciation |  |  | (93,943 | ) |  |  | (84,355 | )
Prepaid expenses and other |  |  | (1,732 | ) |  |  | (6,552 | )
Total deferred tax liabilities |  |  | (159,035 | ) |  |  | (143,478 | )
Total |  | $ | (59,075 | ) |  | $ | (53,129 | )
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, 2016, we had a $0.2 million valuation allowance recorded associated with state net operating losses. The valuation allowance decreased $5.1 million in the current year primarily as a result of our equity investment in a partnership with U.S. Bancorp Community Development Corporation, expected state net operating loss utilization, and a certain amount of capital loss expiration. See also Note 18. As of December 31, 2016, we no longer have an amount of capital loss carryforward. During 2016, we utilized the capital loss carryforward primarily related to capital gains generated as a result of our equity investment in a partnership with U.S. Bancorp Community Development Corporation. The remaining amount of capital loss and associated valuation allowance of $0.2 million were written off due to expiration as of December 31, 2016. State net operating loss carryforward amounts totaled approximately $1.5 million, tax effected, at December 31, 2016 and have expiration dates through 2036. 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 recorded a valuation allowance of $0.2 million on the deferred tax assets relating to these state NOL carryforwards. Additionally, we have $1.5 million, tax effected, in state tax credit carryforwards with expiration dates through 2026. We believe it is more likely than not that the benefits from these state tax credit carryforwards will be realized. Unrecognized Tax Benefits The following is a reconciliation of our unrecognized tax benefits (in thousands):
Balance, December 31, 2014 |  | $ | 1,495 |
Decrease related to tax positions taken - prior year |  |  | (464 | )
Balance, December 31, 2015 |  |  | 1,031 |
Decrease related to tax positions taken - prior year |  |  | (1,031 | )
Balance, December 31, 2016 |  | $ | — |
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. We have no unrecognized tax benefits recorded as of December 31, 2016. Open tax years at December 31, 2016 included the following:
Federal |  | 2013 | - | 2016 |
19 states |  | 2012 | - | 2016 |

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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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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