Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income from Continuing Operations Before Income Taxes

For financial reporting purposes, income from continuing operations before income taxes includes the following components (in thousands):

	2017		2016		2015
United States	$	74,151	$	66,848	$	57,665
Foreign (Canada)		169		158		167
Total	$	74,320	$	67,006	$	57,832

Income Tax Expense (Benefit) Included in Consolidated Statements of Comprehensive Income

Income tax expense (benefit) included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015 was as follows (in thousands):

	2017			2016			2015
Continuing operations :
Current:
Federal	$	21,086		$	18,816		$	18,079
Foreign		45			42			43
State and local		2,475			2,681			2,694
Total		23,606			21,539			20,816
Deferred:
Federal		(1,086	)		4,148			1,060
State and local		768			712			953
Total		(318	)		4,860			2,013
Total income tax expense from continuing operations		23,288			26,399			22,829
Discontinued operations :
Operations of discontinued operations:
Current		(418	)		(365	)		(1,263	)
Deferred		(19	)		(10	)		68
Total		(437	)		(375	)		(1,195	)
Gain on disposal of discontinued operations:
Current		—			—			427
Deferred		—			—			(344	)
Total		—			—			83
Total income tax expense from discontinued operations		(437	)		(375	)		(1,112	)
Total income tax expense	$	22,851		$	26,024		$	21,717

Provision for Income Taxes Attributable to Income from Continuing Operations

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):

	2017			2016			2015
Tax at statutory rate (35%)	$	26,012		$	23,452		$	20,241
State taxes (net of federal benefit)		2,945			2,643			2,899
Business meals and entertainment — non-deductible		820			784			779
Reserves for uncertain tax positions		(35	)		(87	)		(324	)
Share-based compensation		(3,837	)		—			—
Impact of the Tax Cuts and Jobs Act of 2017		(2,487	)		—			—
Net change in state tax rate		95			(64	)		(1,046	)
Other, net		(225	)		(329	)		280
Provision for income taxes from continuing operations	$	23,288		$	26,399		$	22,829
Effective income tax rate		31.3	%		39.4	%		39.5	%

Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016, were as follows (in thousands):

	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	1,229		$	884
Allowance for doubtful accounts		3,022			4,486
Employee benefits and compensation		21,155			29,166
Lease costs		3,611			2,772
State tax credit carryforwards		1,385			1,489
Other deferred tax assets		1,161			2,951
Total gross deferred tax assets		31,563			41,748
Less: valuation allowance		(1,657	)		(1,314	)
Total deferred tax assets, net	$	29,906		$	40,434
Deferred tax liabilities:
Accrued interest	$	819		$	2,494
Client list intangible assets		1,513			2,717
Goodwill and other intangibles		30,913			38,646
Other deferred tax liabilities		-			122
Total gross deferred tax liabilities	$	33,245		$	43,979
Net deferred tax liability	$	(3,339	)	$	(3,545	)

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2017			2016			2015
Balance at January 1	$	4,090		$	4,287		$	4,591
Additions for tax positions of the current year		123			110			126
Settlements of prior year positions		—			(11	)		(94	)
Lapse of statutes of limitation		(331	)		(296	)		(336	)
Balance at December 31		3,882			4,090			4,287