Note 13 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

13.

     

INCOME TAXES

:

Provision for Income Taxes

The tax provisions are summarized as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Current provision-
Federal	$	15,236	$	7,513	$	21,826
State		2,300		2,592		3,531
		17,536		10,105		25,357
Deferred provision-
Federal		8,260		29,561		23,243
State		71		2,084		1,986
		8,331		31,645		25,229
Provision (benefit) for income taxes	$	25,867	$	41,750	$	50,586

A reconciliation of taxes based on the federal statutory rates and the provisions (benefits) for income taxes are summarized as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Income taxes at the federal statutory rate	$	23,255	$	37,733	$	45,691
State income taxes, net of federal benefit		1,552		3,053		3,398
Tax effect of permanent differences		887		959		1,069
Other, net		173		5		428
Provision for income taxes	$	25,867	$	41,750	$	50,586

The components of income taxes recorded in other comprehensive income and paid in capital consisted of the following (in thousands):

	Year Ended December 31,
	2016		2015		2014
Income tax expense (benefit) related to components of other comprehensive income:
Change in fair value of cash flow swaps	$	−	$	92	$	308
Change in fair value of available-for-sale securities		13		7		166
Total	$	13	$	99	$	474
Paid in capital – stock based compensation	$	294	$	337	$	(5,207	)

The following summarizes the components of net deferred income tax liabilities included in the balance sheet (in thousands):

	December 31,
	2016			2015
Deferred income tax (assets) liabilities:
Inventory	$	(5,074	)	$	(6,039	)
Accounts receivable		(203	)		(187	)
Capital lease obligations		(31,263	)		(30,993	)
Stock options		(11,655	)		(10,719	)
Accrued liabilities		(3,610	)		(3,685	)
State net operating loss carry forward		(1,921	)		(1,570	)
State tax credit		(380	)		(382	)
Other		(5,170	)		(2,606	)
Difference between book and tax basis- Depreciation and amortization		256,352			244,716
		197,076			188,535
Valuation allowance		255			452
Net deferred income tax liability	$	197,331		$	188,987

At

December

31,

2016,

the Company had approximately

$44.6

million in state net operating loss carry forwards that expire from

2016

through

2036.

The Company has a valuation allowance of

$255,000

associated with state net operating losses. The valuation allowance decreased by

$197,000

due to uncertainty regarding the ability to utilize the losses.

The Company had unrecognized income tax benefits totaling

$2.4

million as a component of accrued liabilities at

December

31,

2016,

and

$2.3

million at

December

31,

2015,

the total of which, if recognized, would impact the Company’s effective tax rate. An unfavorable settlement would require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. During the years ended

December

31,

2016,

2015

and

2014,

the Company recognized approximately

$34,800,

$11,600,

and

$17,500

in interest. No amounts were accrued for penalties. The Company had approximately

$145,000,

$110,100

and

$98,500

for the payment of interest accrued at

December

31,

2016,

2015

and

2014,

respectively.

The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next

12

months. As of

December

31,

2016,

the tax years ended

December

31,

2013

through

2016

remained subject to audit by federal tax authorities and the tax years ended

December

31,

2012

through

2016,

remained subject to audit by state tax authorities.

A reconciliation of the change in the unrecognized tax benefits is as follows (in thousands):

	2016			2015			2014
Unrecognized tax benefits at beginning of period	$	2,332		$	2,087		$	1,545
Gross increases – tax positions in current year		429			692			815
Gross increases – tax positions in a prior year					−			−
Reductions due to lapse of statute of limitations		(360	)		(447	)		(273	)
Unrecognized tax benefits at end of period	$	2,401		$	2,332		$	2,087