(10) 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 2011.

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, 2015, 2014 and 2013 are as follows (in thousands):

	2015		2014		2013
Current
Federal	$	13,641	$	7,889	$	12,654
State		2,352		1,486		2,544
		15,993		9,375		15,198
Deferred
Federal		73		2,595		(848	)
State		11		488		(26	)
		84		3,083		(874	)
Provision for income taxes	$	16,077	$	12,458	$	14,324

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, 2015, 2014 and 2013 are as follows (in thousands):

	2015			2014			2013
Tax at statutory federal income tax rate	$	14,348		$	11,531		$	13,410
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit		1,683			1,486			1,630
Permanent differences, net		88			(516	)		(685	)
Other, net		(42	)		(43	)		(31	)
Provision for income taxes	$	16,077		$	12,458		$	14,324

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Gross deferred tax assets
Deferred compensation and accrued paid leave	$	6,943		$	6,992
Accrued expenses		2,228			1,276
Stock-based compensation		765			592
Interest rate swaps		47			-
Reserve for contract disallowances		119			287
Acquisition-related expenses		503			982
Capitalized inventory		1,080			589
Other		3			5
Total gross deferred tax assets		11,688			10,723

Gross deferred tax liabilities
Depreciation		(3,912	)		(2,830	)
Deferred revenues		(2,189	)		(2,676	)
Goodwill and intangible assets		(37,111	)		(5,017	)
Total gross deferred tax liabilities		(43,212	)		(10,523	)

Net deferred tax (liabilities) assets	$	(31,524	)	$	200