11.Income Taxes 

The provision for income taxes comprises the following (in thousands):



A summary of the temporary differences that give rise to deferred tax assets/ (liabilities) follows (in thousands):





   

At December 31, 2017 and 2016, state net operating loss carryforwards were $36.5 million and $36.0 million, respectively.  These net operating losses will expire, in varying amounts, between 2024 and 2037.  Based on our history of operating earnings, we have determined that our operating income will, more likely than not, be sufficient to ensure realization of our deferred income tax assets.













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





We file tax returns in the U.S. federal jurisdiction and various states.  The years ended December 31, 2014 and forward remain open for review for federal income tax purposes.  The earliest open year relating to any of our major state jurisdictions is the fiscal year ended December 31, 2012.  During the next twelve months, we do not anticipate a material net change in unrecognized tax benefits.



We classify interest related to our accrual for uncertain tax positions in separate interest accounts.  As of December 31, 2017 and 2016, we have approximately $134,000 and $130,000, respectively, accrued in interest payable related to uncertain tax positions.  These accruals are included in other current liabilities in the accompanying consolidated balance sheet.  Net interest expense related to uncertain tax positions included in interest expense in the accompanying consolidated statement of income is not material.



The difference between the actual income tax provision for continuing operations and the income tax provision calculated at the statutory U.S. federal tax rate is explained as follows (in thousands):





Summarized below are the total amounts of income taxes paid during the years ended December 31 (in thousands):







Provision has not been made for additional taxes on $35.1 million of undistributed earnings of our domestic subsidiaries.  Should we elect to sell our interest in all of these businesses rather than to effect a tax-free liquidation, additional taxes amounting to approximately $8.4 million would be incurred based on current income tax rates.