13.	INCOME TAXE S:

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

	Year Ended December 31,
	2018			2017			2016
Current provision −
Federal	$	31,819		$	22,443		$	15,236
State		6,291			4,030			2,300
		38,110			26,473			17,536
Deferred provision −
Federal		6,082			(64,821	)		8,260
State		(85	)		2,618			71
		5,997			(62,203	)		8,331
Provision (benefit) for income taxes	$	44,107		$	(35,730	)	$	25,867

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,
	2018		2017			2016
Income taxes at the federal statutory rate	$	38,469	$	47,749		$	23,255
State income taxes, net of federal benefit		4,913		3,246			1,552
Tax effect of permanent differences		596		(4,097	)		887
Revaluation of deferred taxes		−		(82,862	)		−
Other, net		129		234			173
(Benefit) provision for income taxes	$	44,107	$	(35,730	)	$	25,867

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

	Year Ended December 31,
	2018		2017		2016
Income tax expense (benefit) related to components of other comprehensive income:
Change in fair value of available-for-sale securities		−		183		13
Total	$	−	$	183	$	13

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

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

	December 31,
	2018			2017
Deferred income tax (assets) liabilities:
Inventory	$	(4,076	)	$	(3,637	)
Accounts receivable		(231	)		(157	)
Capital lease obligations		(16,202	)		(19,480	)
Stock options		(9,026	)		(6,899	)
Accrued liabilities		(2,481	)		(2,533	)
State net operating loss carry forward		(2,463	)		(2,262	)
State tax credit		(312	)		(410	)
Other		(3,276	)		(3,627	)
Difference between book and tax basis- Depreciation and amortization		179,325			174,266
		141,258			135,261
Valuation allowance		50			50
Net deferred income tax liability	$	141,308		$	135,311

December 22, 2017,

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

35%

21%

effective

January 1, 2018.

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

2017

year end results. Staff Accounting Bulletin

No.

118

(SAB

118

) provided guidance that allowed 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. We applied the guidance in SAB

118

when accounting for the enactment-date effects of the Tax Act in

2017

and throughout

2018.

December 31, 2017,

we had

not

completed our accounting for all of the enactment-date income tax effects of the Tax Act under ASC

740,

Income Taxes

, for the remeasurement of deferred tax assets and liabilities. At

December 31, 2018,

we have now completed our accounting for all of the enactment-date income tax effects of the Tax Act. As further discussed below, during

2018,

we did

not

identify any material or significant adjustments to the provisional amounts recorded at

December 31, 2017.

December 31, 2017,

the Company recognized a net tax benefit of

$82.9

million, which was included as a component of income tax expense. The benefit recorded was primarily a result of the remeasurement of the Company’s deferred tax assets and liabilities at the rate in which they will reverse. Upon further analysis of certain aspects of the Tax Act and refinement of our calculations during the

12 months ended

December 31, 2018,

we adjusted our provisional amount by less than

$100,000

which is included as a component of income tax expense from continuing operations.

As of

December 31, 2018,

the Company had approximately

$51.0

million in state net operating loss carry forwards that expire from

2018

2038.

The Company has evaluated whether its state net operating losses are realizable and has recorded a valuation allowance of

$50,000

against them. The valuation allowance remained unchanged in

2018.

The Company had unrecognized income tax benefits totaling

$2.4

million as a component of accrued liabilities as of

December 31, 2018,

and

$2.6

million at

December 31, 2017,

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, 2018,

2017

and

2016,

the Company recognized approximately $(

27,450

$21,050,

and

$34,800

in interest expense (income).

amounts were accrued for penalties. The Company had approximately

$139,000,

$166,000

and

$145,000

for the payment of interest accrued as of

December 31, 2018,

2017

and

2016,

respectively.

The Company does

not

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

months. As of

December 31, 2018,

the tax years ended

December 31, 2015

through

2018

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

December 31, 2014

through

2018,

remained subject to audit by state tax authorities.

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

	2018			2017			2016
Unrecognized tax benefits at beginning of period	$	2,555		$	2,401		$	2,332
Gross increases – tax positions in current year		504			619			429
Reductions due to lapse of statute of limitations		(670	)		(465	)		(360	)
Unrecognized tax benefits at end of period	$	2,389		$	2,555		$	2,401