| Income Taxes |
Income Taxes
We are subject to U.S. federal income tax as well as income tax in multiple state and local jurisdictions. We have concluded all U.S. federal income tax matters as well as material state and local tax matters for years through 2012.
We file consolidated federal income tax returns that include all of our subsidiaries. The components of the provision for income taxes from continuing operations for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands):
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2016 |
|
2015 |
|
2014 |
Current |
|
|
|
|
|
Federal |
$ |
13,648 |
|
|
$ |
13,641 |
|
|
$ |
7,889 |
|
State |
2,379 |
|
|
2,352 |
|
|
1,486 |
|
|
16,027 |
|
|
15,993 |
|
|
9,375 |
|
Deferred |
|
|
|
|
|
|
|
|
Federal |
(983 |
) |
|
73 |
|
|
2,595 |
|
State |
(163 |
) |
|
11 |
|
|
488 |
|
|
(1,146 |
) |
|
84 |
|
|
3,083 |
|
Provision for income taxes |
$ |
14,881 |
|
|
$ |
16,077 |
|
|
$ |
12,458 |
|
The differences between the amount of tax computed at the federal statutory rate of 35% and the provision for income taxes from continuing operations for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands):
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2016 |
|
2015 |
|
2014 |
Tax at statutory federal income tax rate |
$ |
14,586 |
|
|
$ |
14,348 |
|
|
$ |
11,531 |
|
Increases (decreases) in tax resulting from: |
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State taxes, net of federal tax benefit |
1,599 |
|
|
1,683 |
|
|
1,486 |
|
Permanent differences, net |
(974 |
) |
|
88 |
|
|
(516 |
) |
Other, net |
(330 |
) |
|
(42 |
) |
|
(43 |
) |
Provision for income taxes |
$ |
14,881 |
|
|
$ |
16,077 |
|
|
$ |
12,458 |
|
The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):
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2016 |
|
2015 |
Gross deferred tax assets |
|
|
|
Deferred compensation and accrued paid leave |
$ |
7,602 |
|
|
$ |
6,943 |
|
Accrued expenses |
1,933 |
|
|
2,228 |
|
Stock-based compensation |
803 |
|
|
765 |
|
Interest rate swaps |
— |
|
|
47 |
|
Reserve for contract disallowances |
90 |
|
|
119 |
|
Acquisition-related expenses |
452 |
|
|
503 |
|
Capitalized inventory |
1,104 |
|
|
1,080 |
|
State operating loss carryforward |
283 |
|
|
— |
|
Tax credit carryforward |
155 |
|
|
— |
|
Legal settlements |
614 |
|
|
— |
|
Other |
65 |
|
|
3 |
|
Total gross deferred tax assets |
13,101 |
|
|
11,688 |
|
|
|
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Gross deferred tax liabilities |
|
|
|
Interest rate swaps |
(28 |
) |
|
— |
|
Depreciation |
(3,522 |
) |
|
(3,912 |
) |
Deferred revenues |
(2,291 |
) |
|
(2,189 |
) |
Goodwill and intangible assets |
(37,132 |
) |
|
(37,111 |
) |
Total gross deferred tax liabilities |
(42,973 |
) |
|
(43,212 |
) |
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Net deferred tax liabilities |
$ |
(29,872 |
) |
|
$ |
(31,524 |
) |
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