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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 12 – INCOME TAXES The provision for income taxes is comprised of (in thousands):
|  | Years ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 17,557 |  |  | $ | 18,307 |  |  | $ | 13,939 |
State |  |  | 3,302 |  |  |  | 3,472 |  |  |  | 2,989 |
|  |  | 20,859 |  |  |  | 21,779 |  |  |  | 16,928 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (5,895 | ) |  |  | (338 | ) |  |  | (1,255 | )
State |  |  | (284 | ) |  |  | (267 | ) |  |  | (260 | )
|  |  | (6,179 | ) |  |  | (605 | ) |  |  | (1,515 | )
Total tax expense |  | $ | 14,680 |  |  | $ | 21,174 |  |  | $ | 15,413 |
The reconciliation between our effective tax rate on net income and the federal statutory rate is as follows (dollars in thousands):
|  | Years ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Income tax at federal statutory rate |  | $ | 19,537 |  |  |  | 35.0 | % |  | $ | 20,864 |  |  |  | 35.0 | % |  | $ | 14,676 |  |  |  | 35.0 | %
Stock compensation |  |  | (581 | ) |  |  | (1.0 | %) |  |  | (227 | ) |  |  | (0.4 | %) |  |  | — |  |  |  | 0.0 | %
Qualified Production Activity Deduction |  |  | (1,715 | ) |  |  | (3.1 | %) |  |  | (1,776 | ) |  |  | (3.0 | %) |  |  | (1,347 | ) |  |  | (3.2 | %)
Other permanent items |  |  | 197 |  |  |  | 0.4 | % |  |  | (92 | ) |  |  | (0.1 | %) |  |  | (69 | ) |  |  | (0.2 | %)
Change in valuation allowance |  |  | 285 |  |  |  | 0.5 | % |  |  | 442 |  |  |  | 0.7 | % |  |  | 467 |  |  |  | 1.1 | %
Change in uncertain tax positions |  |  | (1,807 | ) |  |  | (3.2 | %) |  |  | 66 |  |  |  | 0.1 | % |  |  | (559 | ) |  |  | (1.3 | %)
State income taxes, net of federal benefit |  |  | 2,150 |  |  |  | 3.8 | % |  |  | 1,897 |  |  |  | 3.2 | % |  |  | 2,245 |  |  |  | 5.4 | %
Rate impact of the Tax Act |  |  | (3,386 | ) |  |  | (6.1 | %) |  |  | — |  |  |  | — | % |  |  | — |  |  |  | — | %
Total tax expense |  | $ | 14,680 |  |  |  | 26.3 | % |  | $ | 21,174 |  |  |  | 35.5 | % |  | $ | 15,413 |  |  |  | 36.8 | %
Components of the net deferred tax asset or liability are as follows (in thousands):
|  | As of December 31, |
|  | 2017 |  |  | 2016 |
Deferred Tax Assets |  |  |  |  |  |  |  |
Long-term |  |  |  |  |  |  |  |
Accrued reserves and allowances |  | $ | 3,916 |  |  | $ | 1,866 |
Allowance for doubtful accounts |  |  | 426 |  |  |  | 448 |
Inventories |  |  | 213 |  |  |  | 284 |
Intangibles |  |  | 3,279 |  |  |  | 806 |
Net operating loss carryforwards |  |  | 2,623 |  |  |  | 2,921 |
Other current and long-term |  |  | 10 |  |  |  | 2 |
Long-term deferred tax assets |  |  | 10,467 |  |  |  | 6,327 |
Less: Valuation allowance |  |  | (1,746 | ) |  |  | (2,415 | )
Net deferred tax assets |  |  | 8,721 |  |  |  | 3,912 |
Deferred Tax Liabilities |  |  |  |  |  |  |  |
Long-term |  |  |  |  |  |  |  |
Accrued reserves and allowances |  |  | (308 | ) |  |  | (565 | )
Property and equipment |  |  | (1,453 | ) |  |  | (1,505 | )
Intangibles |  |  | (3,543 | ) |  |  | (4,899 | )
Investment in partnership |  |  | (9,189 | ) |  |  | (9,530 | )
Other |  |  | (208 | ) |  |  | (62 | )
Long-term deferred tax liabilities |  |  | (14,701 | ) |  |  | (16,561 | )
Net deferred tax liabilities |  | $ | (5,980 | ) |  | $ | (12,649 | )
As of December 31, 2017, we have recorded a deferred tax asset of $2.6 million reflecting the benefit of $10.6 million in federal and state income tax net operating loss (NOL) carryforwards, the earliest of which expires in 2030. Valuation Allowance We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets on a jurisdiction and by tax filing entity basis. A significant piece of objective negative evidence evaluated is cumulative losses incurred over the most recent three-year period. Such objective evidence limits our ability to consider other subjective positive evidence such as our projections for future growth. Based on this evaluation, a valuation allowance has been recorded as of December 31, 2017 and 2016 for the net deferred tax assets recorded on certain of our wholly owned subsidiaries. Such deferred tax assets relate primarily to net operating losses that are not more likely than not realizable. However, the amount of the deferred tax asset considered realizable could be adjusted if our estimate of future taxable income during the carryforward period changes, or if objective negative evidence in the form of cumulative losses is no longer present. Additional weight may be given to subjective evidence such as our projections for growth in this situation. Uncertain Tax Positions We are subject to taxation in the United States and various state jurisdictions. As of December 31, 2017, our tax years for 2014 through 2016 are subject to examination by the tax authorities. A rollforward of the gross unrecognized tax benefits is as follows (in thousands):
Unrecognized tax benefit, January 1, 2016 |  | $ | 3,586 |
Increase as a result of tax positions taken during the period |  |  | 2,354 |
Decrease as a result of tax positions taken during the period |  |  | (1,356 | )
Decrease as a result of expiring statutes |  |  | (487 | )
Unrecognized tax benefit, December 31, 2016 |  |  | 4,097 |
Increase as a result of tax positions taken during the period |  |  | 4,353 |
Decrease as a result of tax positions taken during the period |  |  | (2,311 | )
Decrease as a result of expiring statutes |  |  | (1,689 | )
Unrecognized tax benefit, December 31, 2017 |  | $ | 4,450 |
Unrecognized tax benefits of $1.5 million at December 31, 2017 would affect the effective tax rate. Interest expense and penalties accrued related to uncertain tax positions as of December 31, 2017 are $0.1 million. We expect a decrease to the amount of unrecognized tax benefits (exclusive of penalties and interest) within the next twelve months of zero to $1.1 million. Determining uncertain tax positions and the related estimated amounts requires judgment and carry estimation risk. If future tax law changes or interpretations should come to light, or additional information should become known, our conclusions regarding unrecognized tax benefits may change. Impacts of the Tax Cuts and Jobs Act The Tax Act was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, which had a positive impact on our 2017 effective tax rate due to the revaluation of our ending net deferred tax liabilities, and we expect it will have a positive impact on our effective tax rate in 2018 and subsequent years. Income tax expense (benefit) decreased $3.4 million for the year ended December 31, 2017, compared to 2016, due to the impact of the Tax Act. The Company recognized a $3.8 million tax benefit as a result of revaluing the ending net deferred tax liabilities from 35% to the newly enacted U.S. corporate income tax rate of 21%. The tax benefit was partially offset by tax expense of $0.4 million net amount for the revaluation of the uncertain tax positions and the valuation allowance. The Company has recognized the tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act.

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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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