Income Taxes

We recorded a

$56.5

million deferred income taxes benefit in

2017

to recognize the impact of the reduction of the federal corporate statutory income tax rate

beginning on

January 1, 2018

from

35%

21%

related to the Tax Cuts and Jobs Act of

2017.

Excluding that benefit, the

2017

federal deferred provision was

$8.0

million and the effective tax rate was

40.1%.

The Tax Cuts and Jobs Act of

2017

makes broad and complex changes to the U.S. tax code that affected

2017

including, but

not

limited to, reducing the federal corporate income tax rate as noted above and allowing bonus depreciation with full expensing of qualified property placed in service after

September 27, 2017.

We have completed the accounting under FASB ASC

740,

Income Taxes

and our estimates are considered final.

The

components of the income taxes (benefit) expense consisted of the following:

(In thousands)	201 7			201 6		201 5
Current:
Federal	$	12,427		$	8,987	$	9,280
State		990			1,125		946
Total current		13,417			10,112		10,226

Deferred:
Federal		(48,424	)		12,427		13,042
State		1,196			1,063		1,678
Total deferred		(47,228	)		13,490		14,720
Total (benefit) expense	$	(33,811	)	$	23,602	$	24,946

The

federal statutory income tax rate is reconciled to the effective income tax rate as follows:

	201 7			201 6			201 5
Federal statutory income tax rate		35	%		35	%		35	%
Per diem and other non-deductible expenses		4			4			3
Increase in taxes arising from state income taxes, net of federal income tax benefit		3			2			3
Federal tax credits		(1	)		—			—
Decrease in federal deferred taxes due to decrease in statutory rate		(100	)		—			—
Other, net		(1	)		—			—
Effective tax rate		(60	)%		41	%		41	%

As of

December 31,

the net deferred tax liability consisted of the following:

(In thousands)	201 7		201 6
Deferred tax assets:
Reserves and accrued liabilities	$	7,277	$	8,490
Other		1,965		2,757
		9,242		11,247
Deferred tax liabilities:
Depreciation		107,453		155,936
Prepaid expenses		2,415		3,165
		109,868		159,101
Net deferred tax liability	$	100,626	$	147,854

We have

not

provided a valuation allowance against deferred tax assets at

December 31,

201

2016.

We believe the deferred tax assets will be realized principally through future reversals of existing taxable temporary differences (deferred tax liabilities) and future taxable income.

Our reserves for unrecognized tax benefits were

$407,000

as of

December 31, 2017

and

$536,000

as of

December 31, 2016.

The

$129,000

decrease in the amount reserved in

2017

relates to curren

t period tax positions and the removal of the reserve relating to

2012

tax positions, because that period has now closed. The amount reserved as of

December

31,

2016

was added in

2012

through

2016

relating to current period tax positions. If recognized,

$322,000

of the unrecognized tax benefits as of

December 31, 2017

would favorably impact our effective tax rate. Potential interest and penalties related to unrecognized tax benefits of

$11,000

and

$59,000

were recognized in our financial statements as of

December

31,

2017

and

2016,

respectively. We do

not

expect the reserves for unrecognized tax benefits to change significantly within the next

twelve

months. The federal statute of limitations remains open for

2014

and forward. We file tax returns in numerous state jurisdictions with varying statutes of limitations.