13.	INCOME TAXES :

Provision for Income Taxes

The tax provisions are summarized as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013

Current provision-
Federal	$	7,513	$	21,826	$	7,755
State		2,592		3,531		2,008

		10,105		25,357		9,763

Deferred provision-
Federal		29,561		23,243		20,470
State		2,084		1,986		1,611

		31,645		25,229		22,081

Provision (benefit) for income taxes	$	41,750	$	50,586	$	31,844

A reconciliation of taxes based on the federal statutory rates and the provisions (benefits) for income taxes are summarized as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013

Income taxes at the federal statutory rate	$	37,733	$	45,691	$	28,371
State income taxes, net of federal benefit		3,053		3,398		2,259
Tax effect of permanent differences		959		1,069		802
Other, net		5		428		412

Provision for income taxes	$	41,750	$	50,586	$	31,844

The components of income taxes for other than continuing operations consisted of the following (in thousands):

	Year Ended December 31,
	2015		2014			2013
Income tax expense (benefit) related to components of other comprehensive income:
Change in fair value of cash flow swaps	$	92	$	308		$	338
Change in fair value of available-for-sale securities		7		166			–
Total	$	99	$	474		$	338

Paid in capital – stock based compensation	$	337	$	(5,207	)	$	(2,566	)

The following summarizes the components of net deferred income tax liabilities included in the balance sheet (in thousands):

	December 31,
	2015			2014
Deferred income tax (assets) liabilities:
Inventory	$	(6,039	)	$	(6,786	)
Accounts receivable		(187	)		(304	)
Capital lease obligations		(30,993	)		(21,182	)
Stock options		(10,719	)		(8,820	)
Accrued liabilities		(3,685	)		(3,935	)
State net operating loss carry forward		(1,570	)		(1,436	)
State tax credit		(382	)		(354	)
Other		(2,606	)		(1,839	)
Difference between book and tax basis- Depreciation and amortization		244,716			201,495
		188,535			156,839
Valuation allowance		452			409

Net deferred income tax liability	$	188,987		$	157,248

In 2015, the FASB issued ASU 2015-17, which requires all deferred tax assets and liabilities, as well as related valuation allowances, to be classified as non-current rather than as current and non-current based on the classification of the related assets and liabilities. The Company retrospectively adopted the provisions of ASU 2015-17 in the fourth quarter of 2015. Accordingly, $18.4 million of deferred taxes have been reclassified from deferred tax assets to other deferred income tax liability in the accompanying consolidated balance sheet as of December 31, 2014.

At December 31, 2015, the Company had approximately $39.0 million in state net operating loss carry forwards that expire from 2015 through 2035. The Company has a valuation allowance of $452,000 associated with U.S. state net operating losses. The valuation allowance increased by $43,000 due to uncertainty regarding the ability to utilize the losses.

The Company had unrecognized income tax benefits totaling $2.3 million as a component of accrued liabilities at December 31, 2015, and $2.1 million at December 31, 2014, the total of which, if recognized, would impact the Company’s effective tax rate. An unfavorable settlement would require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2015, 2014 and 2013, the Company recognized approximately $11,600, $17,500, and $32,000 in interest. No amounts were accrued for penalties. The Company had approximately $110,100, $98,500 and $81,000 for the payment of interest accrued at December 31, 2015, 2014 and 2013, respectively.

The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next 12 months. As of December 31, 2015, the tax years ended December 31, 2012 through 2015 remained subject to audit by federal tax authorities and the tax years ended December 31, 2011 through 2015, remained subject to audit by state tax authorities.

A reconciliation of the change in the unrecognized tax benefits is as follows (in thousands):

	2015			2014			2013
Unrecognized tax benefits at beginning of period	$	2,087		$	1,545		$	1,409
Gross increases – tax positions in current year		692			815			466
Gross increases – tax positions in a prior year		−			−			−
Reductions due to lapse of statute of limitations		(447	)		(273	)		(330	)
Unrecognized tax benefits at end of period	$	2,332		$	2,087		$	1,545