1 3.	INCOME TAXES :

Provision for Income Taxes

The tax provisions

are summarized as follows (in thousands):

	Year Ended December 31,
	2017			2016		201 5

Current provision-
Federal	$	22,443		$	15,236	$	7,513
State		4,030			2,300		2,592

		26,473			17,536		10,105

Deferred provision-
Federal		(64,821	)		8,260		29,561
State		2,618			71		2,084

		(62,203	)		8,331		31,645

Provision (benefit) for income taxes	$	(35,730	)	$	25,867	$	41,750

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,
	2017			20 16		2015

Income taxes at the federal statutory rate	$	47,749		$	23,255	$	37,733
State income taxes, net of federal benefit		3,246			1,552		3,053
Tax effect of permanent differences		(4,097	)		887		959
Revaluation of deferred taxes		(82,862	)		−		−
Other, net		234			173		5

(B enefit) provision for income taxes	$	(35,730	)	$	25,867	$	41,750

The components of income taxes

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

	Year Ended December 31,
	201 7		2016		201 5
Income tax expense (benefit) related to components of other comprehensive income:
Change in fair value of cash flow swaps	$	−	$	−	$	92
Change in fair value of available-for-sale securities		183		13		7
Total	$	183	$	13	$	99

Paid in capital – stock based compensation	$	−	$	294	$	337

The following summarizes the

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

	December 31,
	201 7			201 6
Deferred income tax (assets) liabilities:
Inventory	$	(3,637	)	$	(5,074	)
Accounts receivable		(157	)		(203	)
Capital lease obligations		(19,480	)		(31,263	)
Stock options		(6,899	)		(11,655	)
Accrued liabilities		(2,533	)		(3,610	)
State net operating loss carry forward		(2,262	)		(1,921	)
State tax credit		(410	)		(380	)
Other		(3,627	)		(5,170	)
Difference between book and tax basis- Depreciation and amortization		174,266			256,352
		135,261			197,076
Valuation allowance		50			255

Net deferred income tax liability	$	135,311		$	197,331

December 22, 2017,

the Tax Act was enacted.

The Tax Act includes, among other items, a reduction of the U.S. federal corporate tax rate from

35%

21%

effective

January 1, 2018.

The Tax Act makes broad and complex changes to the U.S. tax code, some of which affect the Company’s

2017

year end results. Staff Accounting Bulletin

No.

118

(SAB

118

) provides guidance that allows registrants to provide a reasonable estimate of the Tax Act in their financial statements and adjust the reported impact in a measurement period

not

to exceed

one

year. At

December 31, 2017,

the Company made a reasonable estimate of the effects of the Tax Act on its existing deferred tax balances and recognized a provisional net tax benefit of

$82.9

million, which is included as a component of income tax expense. The provision benefit recorded is primarily a result of the remeasurement of the Company’s deferred tax assets and liabilities at the rate in which they will reverse. The Company will continue to refine its calculations as additional analysis is completed. In addition, the Company’s estimates

may

also be affected as it gains a more thorough understanding of the tax law.

December 31,

201

the Company had approximately

$44.4

million in state net operating loss carry forwards that expire from

2017

through

2037.

The Company has a valuation allowance of

$50,000

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

$205,000

due to expiration of certain losses that had previously had a valuation allowance.

The Company

had unrecognized income tax benefits totaling

$2.6

million as a component of accrued liabilities at

December 31, 2017,

and

$2.4

million at

December 31, 2016,

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, 2017,

2016

and

2015,

the Company recognized approximately

$21,050,

$34,800,

and

$11,600

in interest.

amounts were accrued for penalties. The Company had approximately

$166,000,

$145,000

and

$110,100

for the payment of interest accrued at

December 31, 2017,

2016

and

2015,

respectively.

The Company does

not

anticipate a

significant change in the amount of unrecognized tax benefits in the next

months. As of

December 31, 2017,

the tax years ended

December 31,

2014

through

2017

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

December 31,

2013

through

2017,

remained subject to audit by state tax authorities.

A reconciliation of the change in the unrecognized tax benefits is as follows

(in thousands):

	201 7			201 6			201 5
Unrecognized tax benefits at beginning of period	$	2,401		$	2,332		$	2,087
Gross increases – tax positions in current year		619			429			692
Gross increases – tax positions in a prior year								−
Reductions due to lapse of statute of limitations		(465	)		(360	)		(447	)
Unrecognized tax benefits at end of period	$	2,555		$	2,401		$	2,332