Entity information:
5.
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%
to
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
7
or
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.