(13)	Income Taxes

Income Tax Provision

Income tax provision from continuing operations was as follows (in thousands):

Year Ended December 31,	2015		2014		2013
Current:
Federal	$	58,408	$	56,342	$	46,727
State		14,572		7,944		5,539
		72,980		64,286		52,266
Deferred:
Federal		6,046		10,433		9,010
State		679		236		(702	)
		6,725		10,669		8,308
Total	$	79,705	$	74,955	$	60,574

At December 31, 2015 and 2014, we had income taxes receivable of $23.8 million and $5.6 million, respectively, included as a component of other current assets in our Consolidated Balance Sheets.

The reconciliation between amounts computed using the federal income tax rate of 35% and our income tax provision from continuing operations is shown in the following tabulation (in thousands):

Year Ended December 31,	2015			2014			2013
Federal tax provision at statutory rate	$	91,947		$	73,673		$	58,026
State taxes, net of federal income tax benefit		9,357			6,526			3,141
Equity investment basis difference		11,048			1,422			—
Non-deductible items		882			1,766			1,010
Permanent differences related to the employee stock purchase program		156			68			55
Net change in valuation allowance		(3,303	)		(4,121	)		(554	)
General business credits		(29,093	)		(4,002	)		(440	)
Other		(1,289	)		(377	)		(664	)
Income tax provision	$	79,705		$	74,955		$	60,574

Deferred Taxes

Individually significant components of the deferred tax assets and (liabilities) are presented below (in thousands):

December 31,	2015			2014
Deferred tax assets:
Deferred revenue and cancellation reserves	$	39,323		$	31,539
Allowances and accruals, including state tax carryforward amounts		43,185			29,198
Interest on derivatives		206			678
Goodwill		2,581			2,668
Capital loss carryforward		10,414			10,711
Valuation allowance		(5,360	)		(8,663	)
Total deferred tax assets		90,349			66,131

Deferred tax liabilities:
Inventories		(21,313	)		(19,356	)
Goodwill		(31,258	)		(21,320	)
Property and equipment, principally due to differences in depreciation		(84,355	)		(67,271	)
Prepaid expenses and other		(6,552	)		(3,582	)
Total deferred tax liabilities		(143,478	)		(111,529	)
Total	$	(53,129	)	$	(45,398	)

We consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment.

As of December 31, 2015, we had a $5.4 million valuation allowance recorded associated with our deferred tax assets. The majority of this allowance is associated with capital losses from the sale of corporate entities in prior years. The valuation allowance decreased $3.3 million in the current year primarily as a result of our equity investment in a partnership with U.S. Bancorp Community Development Corporation. See also Note 18.

As of December 31, 2015, we evaluated the availability of projected capital gains and determined that it continues to be unlikely the remaining capital loss carryforward would be fully utilized. We will continue to evaluate if it is more likely than not that we will realize the benefits of these deductible differences. However, additional valuation allowance amounts could be recorded in the future if estimates of taxable income during the carryforward period are reduced.

At December 31, 2015, we had a number of state tax NOL carryforward amounts totaling approximately

$2.0 million, tax effected, with expiration dates through 2035. We believe that it is more likely than not that the benefit from certain state NOL carryforward amounts will not be realized. In recognition of this risk, we have provided a valuation allowance of $2.0 million on the deferred tax assets relating to these state NOL carryforwards. Additionally, we have $2.2 million, tax effected, in state tax credit carryforwards with expiration dates through 2025. We believe it is more likely than not that the benefits from these state tax credit carryforwards will be realized.

We early adopted the guidance, ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes (Topic 740)”, which simplifies the accounting for deferred taxes in a classified statement of financial position and requires all deferred taxes to be presented as non-current. Adoption of this guidance resulted in a reclassification of our net current deferred tax liability to the net non-current deferred tax liability in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

Unrecognized Tax Benefits

The following is a reconciliation of our unrecognized tax benefits (in thousands):

Balance, December 31, 2013	$	—
Acquired with acquisition		1,495
Balance, December 31, 2014		1,495
Decrease related to tax positions taken - prior year		(464	)
Balance, December 31, 2015	$	1,031

The unrecognized tax benefits recorded were acquired as part of the acquisition of DCH. We recorded a tax indemnification asset related to the unrecognized tax benefit as we determined the amount would be recoverable from the seller. Because we anticipate settlements and resulting cash payments related to the unrecognized tax benefits within the next twelve months, these amounts are included as a component of accrued liabilities in our Consolidated Balance Sheets. We did not have any activity during 2013 related to unrecognized tax benefits.

Open tax years at December 31, 2015 included the following:

Federal			2012	-	2015
18 states			2011	-	2015