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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes Income before income taxes by geographic area was, for the years ended December 31:
(in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Federal |  | $ | 48,393 |  |  | $ | 33,830 |  |  | $ | 39,419 |
Foreign |  |  | (5,325 | ) |  |  | (9,190 | ) |  |  | (1,074 | )
|  | $ | 43,068 |  |  | $ | 24,640 |  |  | $ | 38,345 |
The income tax provision consisted of the following for the years ended December 31:
(in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,155 |  |  | $ | 7,020 |  |  | $ | 9,838 |
State |  |  | 3,310 |  |  |  | 1,557 |  |  |  | 2,871 |
|  |  | 8,465 |  |  |  | 8,577 |  |  |  | 12,709 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,936 |  |  |  | (1,453 | ) |  |  | 2,491 |
Foreign |  |  | (822 | ) |  |  | (875 | ) |  |  | 481 |
State |  |  | (805 | ) |  |  | (2,763 | ) |  |  | 1,233 |
|  |  | 3,309 |  |  |  | (5,091 | ) |  |  | 4,205 |
Income tax expense |  | $ | 11,774 |  |  | $ | 3,486 |  |  | $ | 16,914 |
The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for operations were as follows for the years ended December 31:
|  | 2018 |  |  | 2017 |  |  | 2016 |
U.S federal statutory rate |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Deferred balance adjustments due to Tax Act, net |  |  | — |  |  |  | (31.6 | ) |  |  | — |
State income taxes, net of U.S. federal income tax expense |  |  | 5.2 |  |  |  | 5.3 |  |  |  | 5.2 |
Change in valuation allowance |  |  | 1.2 |  |  |  | 6.4 |  |  |  | 1.6 |
Domestic production/manufacturing deduction |  |  | — |  |  |  | (1.6 | ) |  |  | (1.9 | )
Tax differential on foreign earnings |  |  | (0.5 | ) |  |  | 3.2 |  |  |  | 0.6 |
Deferred state tax adjustments, net |  |  | — |  |  |  | (2.4 | ) |  |  | 1.6 |
Non-deductible meals and entertainment |  |  | 0.8 |  |  |  | 1.7 |  |  |  | 1.0 |
Stock compensation excess tax benefits |  |  | (0.1 | ) |  |  | (3.1 | ) |  |  | — |
Uncertain tax positions |  |  | 0.1 |  |  |  | 2.0 |  |  |  | — |
Provision to return adjustments, net |  |  | (0.2 | ) |  |  | (0.3 | ) |  |  | 0.8 |
Non-controlling interest |  |  | (0.5 | ) |  |  | — |  |  |  | — |
Other income, net |  |  | 0.3 |  |  |  | (0.5 | ) |  |  | 0.2 |
Effective rate |  |  | 27.3 | % |  |  | 14.1 | % |  |  | 44.1 | %
The net deferred tax assets and (liabilities) arising from temporary differences was as follows at December 31:
(in thousands) |  | 2018 |  |  | 2017 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Self insurance reserves |  | $ | 4,299 |  |  | $ | 4,555 |
Contract loss reserves |  |  | 350 |  |  |  | 317 |
Stock-based awards |  |  | 1,143 |  |  |  | 1,571 |
Bonus |  |  | 3,271 |  |  |  | 590 |
Non-U.S. operating loss |  |  | 2,672 |  |  |  | 2,173 |
Non-U.S. deferred income tax assets, net |  |  | 1,526 |  |  |  | 773 |
Other |  |  | 1,958 |  |  |  | 1,359 |
Total deferred income tax assets before valuation allowances |  |  | 15,219 |  |  |  | 11,338 |
Less: valuation allowances |  |  | (2,672 | ) |  |  | (2,173 | )
Total deferred income tax assets |  |  | 12,547 |  |  |  | 9,165 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Property and equipment – tax over book depreciation |  |  | (26,030 | ) |  |  | (18,792 | )
Intangible assets – tax over book amortization |  |  | (1,890 | ) |  |  | (2,186 | )
Other |  |  | (2,025 | ) |  |  | (1,639 | )
Total deferred income tax liabilities |  |  | (29,945 | ) |  |  | (22,617 | )
Net deferred income taxes |  | $ | (17,398 | ) |  | $ | (13,452 | )
The Company determined that it is more-likely-than-not that it will not realize the deferred tax assets on certain Canadian subsidiaries and recorded a valuation allowance against the entire related deferred tax assets. As of December 31, 2018, the Company had no undistributed earnings of our Canadian subsidiaries. We expect future earnings to be reinvested. Accordingly, as of December 31, 2018 no provision for U.S. income taxes or foreign withholding taxes has been made. The Company is subject to taxation in various jurisdictions. The Company is currently under examination by U. S. federal authorities for its 2016 tax returns and its 2017 tax return is subject to examination by U. S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2014 through 2017. The Company has recorded a liability for unrecognized tax benefits related to tax positions taken on its various income tax returns. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate that is reported in future periods. The decrease in the unrecognized tax benefits as of December 31, 2018 was primarily due to the reclassification of reserves for state tax expenses from unrecognized tax benefits to deferred tax liability during the year ended December 31, 2018. These state tax expenses were deducted on the federal tax returns for the 2011 through 2017. The total unrecognized tax benefits is expected to be reduced by less than $ 0.1 million within the next 12 months. Interest and penalties related to uncertain income tax positions are included as a component of income tax expense in the Financial Statements. The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits at December 31:
(in thousands) |  | 2018 |  |  | 2017 |
Balance at beginning of period |  | $ | 751 |  |  | $ | 271 |
Gross increases in current period tax positions |  |  | 25 |  |  |  | 63 |
Gross increases in prior period tax positions |  |  | — |  |  |  | 434 |
Reductions in tax positions due to lapse of statutory limitations |  |  | (8 | ) |  |  | (17 | )
Reclass from unrecognized tax benefits to deferred tax liability |  |  | (441 | ) |  |  | — |
Balance at end of period |  |  | 327 |  |  |  | 751 |
Accrued interest and penalties at end of period |  |  | 48 |  |  |  | 36 |
Total liability for unrecognized tax benefits |  | $ | 375 |  |  | $ | 787 |
The liability for unrecognized tax benefits, including accrued interest and penalties, was included in other liabilities in the accompanying consolidated balance sheets. The amount of interest and penalties charged or credited to income tax expense as a result of the unrecognized tax benefits was not significant in the years ended December 31, 2018, 2017 and 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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