Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.6.0.2
Income Taxes
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
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):
 
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):
 
2016
 
2015
 
2014
Tax at statutory federal income tax rate
$
14,586

 
$
14,348

 
$
11,531

Increases (decreases) in tax resulting from:
 

 
 

 
 

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):
 
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

 
 
 
 
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
)
 
 
 
 
Net deferred tax liabilities
$
(29,872
)
 
$
(31,524
)