Entity information:
NOTE
13.
INCOME TAXES
 
The components of income before income taxes consist of the following (in thousands):
 
 
   
Years Ended December 31,
  
   
2016 
    
2015
    
2014
  
Domestic
   $
48,257
     $
34,598
     $
30,137
  
Foreign
    
2,831
      
3,997
      
70
  
Total income before income taxes
   $
51,088
     $
38,595
     $
30,207
  
 
The Company’s provision for income taxes consisted of the following (in thousands):
 
 
 
 
Years Ended December 31,
 
 
 
2016
 
 
2015
 
 
2014
 
Current:
                        
State
   $
1,122
     $
1,435
     $
756
  
U.S
.
    
15,226
      
8,352
      
6,029
  
Foreign
    
1,805
      
1,663
      
188
  
Deferred:
                        
State
    
33
     
(671
 )    
358
 
U.S
.
    
522
      
3,889
      
4,452
  
Foreign
    
(527
 )    
(48
 )    
(37
 )
Provision (benefit) for income taxes
   $
18,181
     $
14,620
     $
11,746
  
 
As of
December
 
31,
2016,
for state income tax purposes, the Company had
$8.2
million in net operating losses expiring in
2017
through
2029.
 
The following table reconciles the income tax provisions computed using the U.S. statutory rate of
35%
for
2016,
2015
and
2014
to the provisions reflected in the financial statements (in thousands).
 
   
Years Ended December 31,
  
   
2016 
 
    
2015
    
2014
  
Taxes at statutory rate
   $
17,881
     $
13,508
     $
10,569
  
Qualified production activities deduction
    
(1,564
 )    
(762
 )    
(403
 )
Non-deductible acquisition costs
   
—
      
—
      
809
  
Non-deductible U.S. Attorney settlement
    
420
      
—
      
—
  
Non-deductible officer compensation
    
616
      
1,474
      
382
  
Other non-deductible expenses
   
124
      
199
      
94
  
Tax impact of foreign earnings
    
(22
 )    
(389
 )    
2
  
State taxes, net of federal benefit
    
861
      
775
      
761
  
Impact of federal tax credits
    
(78
 )    
(65
 )    
(147
 )
Change in deferred tax asset valuation allowance
    
(48
 )    
98
      
(33
 )
Other
    
(9
 )    
(218
 )    
(288
 )
Provision (benefit) for income taxes
   $
18,181
     $
14,620
     $
11,746
  
 
 
Temporary differences and tax credit carryforwards that gave rise to significant portions of deferred tax assets and liabilities as of
December
31,
2016
and
2015
are shown below (in thousands):
 
 
 
2016
 
 
2015
 
Deferred tax assets:                
Assets and accruals not yet deductible
   $
6,750
     $
6,596
  
Equity based compensation
    
1,874
      
1,626
  
Net operating loss carryforward
    
218
      
205
  
Intangible assets
    
2,023
      
—
  
Pension liability
    
4,291
      
4,764
  
State income tax
    
230
      
334
  
Valuation allowance
    
(376
 )    
(423
 )
Total deferred tax assets
    
15,010
      
13,102
  
 
Deferred tax liabilities:                
Property and equipment
    
(29,583
 )    
(27,053
 )
Intangible assets
    
—
      
(1,608
 )
Pension and other retirement benefits
    
(2,311
 )    
(2,647
 )
Assets currently deductible
    
(8,794
 )    
(6,216
 )
Total deferred tax liabilities
    
(40,668
 )    
(37,524
 )
Net deferred tax liability
   $
(25,678
 )   $
(24,422
 )
                 
Deferred income tax asset (liability) current
   $
3,390
     $
3,422
  
Deferred income tax asset (liability) non-current
    
(29,068
 )    
(27,844
 )
Net deferred tax liability
   $
(25,678
 )   $
(24,422
 )
 
The Company or
one
of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before
2014.
The Company is not currently under examination by the Internal Revenue Service, the various states or foreign jurisdictions.
 
Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits, for which the ultimate deductibility is uncertain, as presented in “Other long-term liabilities” on the balance sheet (in thousands):
 
 
 
2016
 
 
2015
 
 
2014
 
Balance at January 1,
   $
1,122
     $
1,404
     $
1,572
  
Additions for tax positions of prior years
    
93
      
205
      
6
  
Reductions for tax positions of prior years
    
—
      
—
      
(174
 )
Additions for tax positions related to the current year
    
450
      
3
      
—
  
Lapse of statute of limitation
    
(177
 )    
(490
 )    
—
  
Balance at December 31,
   $
1,488
     $
1,122
     $
1,404
  
 
The final settlement of these uncertain positions could positively or negatively impact the effective tax rate in the period settled. The anticipated change to the tax positions in the next
12
months
may
decrease by an immaterial amount due to the lapse of the statute of limitations and other voluntary filings by the Company.
 
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company recorded charges of
$28,000
in interest and
$95,000
in penalties during the year ended
December
31,
2016.
The Company recorded income of
$113,000
in reversed interest charges and income of
$62,000
in reversed penalty charges during the year ended
December
31,
2015.