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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Tax Provision The income tax provision was as follows (in thousands):
Year Ended December 31, |  | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |  |
Federal |  | $ | 95,128 |  |  | $ | 68,088 |  |  | $ | 58,408 |
State |  | 16,883 |  |  | 13,884 |  |  | 14,572 |
|  | 112,011 |  |  | 81,972 |  |  | 72,980 |
Deferred: |  |  |  |  |  |
Federal |  | (14,257 | ) |  | 4,893 |  |  | 6,046 |
State |  | 4,098 |  |  | (400 | ) |  | 679 |
|  | (10,159 | ) |  | 4,493 |  |  | 6,725 |
Total |  | $ | 101,852 |  |  | $ | 86,465 |  |  | $ | 79,705 |
At December 31, 2017 and 2016, we had income taxes receivable of $22.5 million and $2.4 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 is shown in the following tabulation (in thousands):
Year Ended December 31, |  | 2017 |  | 2016 |  | 2015
Federal tax provision at statutory rate |  | $ | 121,474 |  |  | $ | 99,233 |  |  | $ | 91,947 |
State taxes, net of federal income tax benefit |  | 13,308 |  |  | 10,784 |  |  | 9,357 |
Equity investment basis difference |  | — |  |  | 9,470 |  |  | 11,048 |
Non-deductible items |  | 1,316 |  |  | 1,436 |  |  | 882 |
Permanent differences related to stock-based compensation |  | (822 | ) |  | 139 |  |  | 156 |
Net change in valuation allowance |  | 330 |  |  | (5,133 | ) |  | (3,303 | )
General business credits |  | (934 | ) |  | (27,950 | ) |  | (29,093 | )
Deferred revaluation for change in statutory tax rate |  | (32,901 | ) |  | — |  |  | — |
Other |  | 81 |  |  | (1,514 | ) |  | (1,289 | )
Income tax provision |  | $ | 101,852 |  |  | $ | 86,465 |  |  | $ | 79,705 |
Deferred Taxes Individually significant components of the deferred tax assets and (liabilities) are presented below (in thousands):
December 31, |  | 2017 |  | 2016
Deferred tax assets: |  |  |  |
Deferred revenue and cancellation reserves |  | $ | 39,397 |  |  | $ | 49,332 |
Allowances and accruals, including state NOL carryforward amounts |  | 36,314 |  |  | 49,074 |
Credits and other |  | 1,112 |  |  | 1,781 |
Valuation allowance |  | (557 | ) |  | (227 | )
Total deferred tax assets |  | 76,266 |  |  | 99,960 |
Deferred tax liabilities: |  |  |  |
Inventories |  | (20,926 | ) |  | (22,253 | )
Goodwill |  | (35,042 | ) |  | (41,107 | )
Property and equipment, principally due to differences in depreciation |  | (73,399 | ) |  | (93,943 | )
Prepaid expenses and other |  | (3,176 | ) |  | (1,732 | )
Total deferred tax liabilities |  | (132,543 | ) |  | (159,035 | )
Total |  | $ | (56,277 | ) |  | $ | (59,075 | )
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, bonus depreciation that will allow for full expensing of qualified property, reduction of the U.S. federal corporate tax rate, a new limitation on deductible interest expense, and limitations on the deductibility of certain executive compensation. We remeasured certain federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. At December 31, 2017, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, we have made a reasonable estimate of the effects on our existing deferred tax balances. The provisional amount recorded related to the remeasurement of our deferred tax balance was $32.9 million, which is included as a component of income tax expense from continuing operations. Included in this amount is an estimated $2 million attributable to full expensing on certain assets and the executive compensation limitation. In all cases, we will continue to make and refine our calculations as additional analysis is completed, further guidance is issued, or new information is made available. 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, 2017, we had a $0.6 million valuation allowance recorded associated with our deferred tax assets. The entire allowance is associated with state net operating losses primarily generated in previous years. The valuation allowance increased $0.3 million in the current year primarily as a result of establishing allowances related to previously off balance sheet NOLs as part of the January 2017 adoption of ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." See Note 1 Summary of Significant Accounting Policies for additional information regarding the adoption of ASU 2016-09. As of December 31, 2017, we had state net operating loss carryforward amounts totaling approximately $2.4 million, tax effected, with expiration dates through 2037. 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 $0.6 million on the deferred tax assets relating to these state NOL carryforwards. We had $1.0 million, tax effected, in state tax credit carryforwards with expiration dates through 2027. 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, 2015 | $ | 1,031 |
Decrease related to tax positions taken - prior year | (1,031 | )
Balance, December 31, 2016 | $ | — |
Decrease related to tax positions taken - prior year | — |
Balance, December 31, 2017 | $ | — |
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. As anticipated, settlements were reached during the year resulting in cash settlements related to the unrecognized tax benefits. As a result, we have no unrecognized tax benefits recorded as of December 31, 2017. Open tax years at December 31, 2017 included the following:
Federal | 2014 - 2017
20 states | 2013 - 2017

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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