17. Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
	2016		2015		2014
Current
Federal	$	8,337	$	245	$	820
State and local		518		184		320
Total current expense		8,855		429		1,140
Deferred
Federal		537		3,610		8,198
State and local		2		90		180
Total deferred income tax expense		539		3,700		8,378
Total income tax expense	$	9,394	$	4,129	$	9,518

Income tax expense related to operations differs from the amounts computed by applying the statutory income tax rate of 35% to pretax income as follows:

	Year Ended December 31,
	2016			2015			2014
At statutory rate	$	6,921		$	3,192		$	5,976
Non-deductible interest expense		1,948			1,777			2,136
State taxes, net of US federal benefit		339			211			393
Federal tax deductions		(648	)		(19	)		(19	)
Change in applicable tax rate		—			—			308
Costs associated with possible restructuring		—			(940	)		913
Provision to return permanent difference		933			(68	)		(96	)
Other		(99	)		(24	)		(93	)
Total income tax expense	$	9,394		$	4,129		$	9,518

Deferred income taxes reflect the net tax effects of loss and credit carry-forwards and 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 assets for federal and state income taxes are as follows:

	Year Ended December 31,
	2016			2015
Deferred tax assets:
Reserves and accruals	$	568		$	537
Total gross deferred tax assets		568			537
Deferred tax liabilities:
Prepaid expenses and other		(132	)		122
Depreciation and amortization		(15,480	)		(15,164	)
Total gross deferred tax liabilities		(15,612	)		(15,042	)
Less: current net deferred tax assets		—			—
Noncurrent deferred tax liabilities, net	$	(15,044	)	$	(14,505	)

In assessing the realizability of deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. At December 31, 2016 and 2015, based on the Company’s future income projections, management determined it was more likely than not that the Company will be able to realize the benefits of the deductible temporary differences. As of December 31, 2016 and 2015, the Company determined no valuation allowance was necessary.

The Company has no state net operating losses as of December 31, 2016, 2015 and 2014, respectively.

The Company has evaluated its tax positions taken as of December 31, 2016 and 2015 and believes all positions taken would be upheld under examination from income taxing authorities. Therefore, no liability for the effects of uncertain tax positions has been recorded in the accompanying consolidated balance sheets as of December 31, 2016 or 2015. The Company is open to examination by taxing authorities since incorporation.