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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes |
| 5. | Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows:
|  | December 31, |
|  | 2016 |  | 2015 |
|  | (In thousands) |
Deferred tax liabilities: |  |  |  |  |  |  |
Property and equipment |  | $ | 6,858 |  | $ | 7,093 |
Intangible assets |  |  | 24,987 |  |  | 21,668 |
Prepaid expenses |  |  | 619 |  |  | 374 |
Total deferred tax liabilities |  |  | 32,464 |  |  | 29,135 |
Deferred tax assets: |  |  |  |  |  |  |
Allowance for doubtful accounts |  |  | 224 |  |  | 226 |
Compensation |  |  | 2,421 |  |  | 2,210 |
Other accrued liabilities |  |  | 78 |  |  | 118 |
|  |  | 2,723 |  |  | 2,554 |
Less: valuation allowance |  |  | — |  |  | — |
Total net deferred tax assets |  |  | 2,723 |  |  | 2,554 |
Net deferred tax liabilities |  | $ | 29,741 |  | $ | 26,581 |
Current portion of deferred tax assets |  | $ | 1,022 |  | $ | 1,107 |
Non-current portion of deferred tax liabilities |  |  | (30,763) |  |  | (27,688) |
Net deferred tax liabilities |  | $ | (29,741) |  | $ | (26,581) |
Deferred tax assets are required to be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. At December 31, 2016 and December 31, 2015, we do not have a valuation allowance for net deferred tax assets. At December 31, 2016 and 2015, net deferred tax liabilities include a deferred tax asset of $1,082,000 and $1,074,000, respectively, relating to deferred compensation and stock-based compensation expense. Full realization of the tax asset related to stock based compensation requires stock options to be exercised at a price equaling or exceeding the sum of the grant price plus the fair value of the option at the grant date and restricted stock to vest at a price equaling or exceeding the fair market value at the grant date. Accounting guidance, however, does not allow a valuation allowance to be recorded unless the company’s future taxable income is expected to be insufficient to recover the asset. Accordingly, there can be no assurance that the price of the Company’s common stock will increase to levels sufficient to realize the entire tax benefit currently reflected in the balance sheets at December 31, 2016 and 2015. See Note 6 — Stock-Based Compensation for further discussion of stock-based compensation expense. During the year ended December 31, 2015, approximately 59,000 stock options expired of which approximately $893,000 had been previously recognized as stock compensation resulting in approximately $360,000 in tax expense. There were no stock option expirations in 2016 or 2014 that resulted in tax expense. The significant components of the provision for income taxes are as follows:
|  | Years Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,920 |  | $ | 4,850 |  | $ | 5,540 |
State |  |  | 1,420 |  |  | 1,150 |  |  | 1,125 |
Total current |  |  | 9,340 |  |  | 6,000 |  |  | 6,665 |
Total deferred |  |  | 3,160 |  |  | 3,640 |  |  | 3,385 |
Total Income Tax Provision |  | $ | 12,500 |  | $ | 9,640 |  | $ | 10,050 |
In addition, we recognized a tax expense of $0, $230,000, and $10,000 as a result of stock option exercises for the difference between compensation expense for financial statement and income tax purposes for the years ended December 31, 2016, 2015 and 2014, respectively. The reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense (benefit) is as follows:
|  | Years Ended December 31, |
|  | 2016 |  | 2015 |  | 2014 |
|  | (In thousands) |
Tax expense at U.S. statutory rates |  | $ | 10,781 |  | $ | 7,922 |  | $ | 8,630 |
State tax expense, net of federal benefit |  |  | 1,323 |  |  | 1,115 |  |  | 1,249 |
Other, net |  |  | 396 |  |  | 603 |  |  | 178 |
Change in valuation allowance on loss carry forwards |  |  | — |  |  | — |  |  | (7) |
|  | $ | 12,500 |  | $ | 9,640 |  | $ | 10,050 |
The Company files income taxes in the U.S. federal jurisdiction, and in various state and local jurisdictions. The Company is no longer subject to U.S. federal examinations by the Internal Revenue Service (IRS) for years prior to 2014. During the first quarter of 2015, the IRS commenced an examination of the Company’s 2013 U.S. federal income tax return which was completed in the first quarter of 2016 and resulted in no changes to the return. The Company is subject to examination for income and non-income tax filings in various states. As of December 31, 2016 and 2015 there were no accrued balances recorded related to uncertain tax positions. We classify income tax-related interest and penalties as interest expense and corporate general and administrative expense, respectively. For the years ended December 31, 2016, 2015 and 2014, we had no tax-related interest or penalties and had $0 accrued at December 31, 2016 and 2015.

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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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