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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 7. Income Taxes The following is a reconciliation of our effective tax rate to the federal statutory tax rate:
| Years Ended December 31, |  |
| 2016 |  |  | 2015 |  |  | 2014 |  |
U.S. federal statutory rate |  | 35.0 |  | % |  | 35.0 |  | % |  | 35.0 |  | %
State taxes, net of federal benefit |  | 2.6 |  |  | 2.4 |  |  | 2.9 |  |
State incentives |  | (0.2 | ) |  | (0.5) |  |  |  | (0.8 | ) |
State law changes |  | 0.3 |  |  | (0.9) |  |  |  | (0.9 | ) |
Nondeductible expenses |  | 0.7 |  |  | 0.4 |  |  |  | 0.9 |  |
Other |  | - |  |  | - |  |  |  | (0.1 | ) |
Net effective rate |  | 38.4 |  | % |  | 36.4 |  | % |  | 37.0 |  | %
The following is a summary of our provision for income taxes (in thousands):
| Years Ended December 31, |
| 2016 |  |  | 2015 |  |  | 2014 |
Current |  |  |  |  |  |  |  |  |  |  |
Federal | $ | 30,324 |  |  | $ | 21,363 |  |  | $ | 5,939 |
State and local |  | 3,296 |  |  |  | 2,900 |  |  |  | 445 |
Foreign |  | 108 |  |  |  | 284 |  |  |  | 249 |
|  | 33,728 |  |  |  | 24,547 |  |  |  | 6,633 |
Deferred |  |  |  |  |  |  |  |  |  |  |
Federal |  | 11,981 |  |  |  | 16,538 |  |  |  | 23,600 |
State and local |  | 971 |  |  |  | (346 | ) |  |  | 191 |
Foreign |  | (64 | ) |  |  | (106 | ) |  |  | (115 | )
|  | 12,888 |  |  |  | 16,086 |  |  |  | 23,676 |
Total provision | $ | 46,616 |  |  | $ | 40,633 |  |  | $ | 30,309 |
In November 2015, the FASB issued Update No. 2015-17—Income Taxes (Topic 740). This Standard provides guidance on the balance sheet classification of deferred taxes, amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. We elected to early adopt this standard as of March 31, 2016 to simplify the presentation of our deferred income taxes and applied the guidance prospectively. As a result, we have presented all deferred tax assets and liabilities as non-current on our consolidated balance sheet as of December 31, 2016, but have not reclassified deferred tax assets and liabilities as noncurrent on our consolidated balance sheet as of December 31, 2015. In the following summary of our deferred tax assets and liabilities (in thousands), however, we are presenting all the deferred tax asset and liability balances as of both December 31, 2016 and December 31, 2015 as noncurrent for better year over year comparability:
| December 31, |
| 2016 |  |  | 2015 |
Accrued compensation |  | 20,651 |  |  |  | 18,448 |
Other reserves |  | 8,580 |  |  |  | 4,319 |
Tax credit carryforwards |  | 1,694 |  |  |  | 1,257 |
Operating loss carryforwards |  | 1,399 |  |  |  | 1,914 |
Total gross deferred income taxes |  | 32,324 |  |  |  | 25,938 |
Valuation allowances |  | (456 | ) |  |  | (108 | )
Total deferred tax assets |  | 31,868 |  |  |  | 25,830 |
Prepaids |  | (3,401 | ) |  |  | (3,448 | )
Other receivables |  | (3,051 | ) |  |  | (4,493 | )
Property and equipment |  | (105,905 | ) |  |  | (87,148 | )
Goodwill |  | (84,170 | ) |  |  | (82,511 | )
Total deferred tax liabilities |  | (196,527 | ) |  |  | (177,600 | )
Total deferred taxes | $ | (164,659 | ) |  | $ | (151,770 | )
We are subject to income taxation in the U.S., numerous state jurisdictions, Mexico and Canada. Because income tax return formats vary among the states, we file both unitary and separate company state income tax returns. Our state tax net operating losses of $1.4 million expire between December 31, 2017 and December 31, 2035. Our state incentive tax credit carryforwards of $1.7 million expire between December 31, 2018 and December 31, 2021. Management believes it is more likely than not that these deferred tax assets will be realized with the exception of $0.1 million related to state tax net operating losses, and $0.3 million related to state tax incentive credit carryforwards. Valuation allowances totaling $0.5 million have been established for each of these amounts. As of December 31, 2016 and December 31, 2015, the amount of unrecognized tax benefits was $1.8 million and $1.1 million, respectively. Of these amounts, our income tax provision would decrease $1.2 million and $0.7 million, respectively, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| 2016 |  |  | 2015 |
Gross unrecognized tax benefits - beginning of the year | $ | 1,139 |  |  | $ | 1,065 |
Gross increases related to prior year tax positions |  | 394 |  |  |  | 166 |
Gross increases related to current year tax positions |  | 488 |  |  |  | 153 |
Lapse of applicable statute of limitations |  | (189 | ) |  |  | (245 | )
Gross unrecognized tax benefits - end of year | $ | 1,832 |  |  | $ | 1,139 |
We estimate it is reasonably possible that our reserve could either increase or decrease by up to $0.5 million during the next twelve months. We recognize interest expense and penalties related to income tax liabilities in our provision for income taxes. In our 2016 provision for income taxes we recognized approximately fifteen thousand dollars of expense for combined income tax interest and income tax penalty. In 2016, we were selected for examinations by the IRS for our 2014 tax year, by California for our 2012 and 2013 tax years, by New York for our 2012 through 2014 tax years, and by Ohio for our 2014 and 2015 tax years. The IRS and California examinations are ongoing. The New York audit was settled for approximately sixteen thousand dollars while the Ohio audit closed with no changes. In addition to the audits that are ongoing, tax years 2012 through 2015 generally remain open to examination by the major jurisdictions to which we are subject.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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