Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of provision for income taxes relating to continuing operations

The provision for income taxes relating to continuing operations consists of the following (in thousands):

	December 31,
	2017		2016		2015
Current tax provision—
Federal	$	35,434	$	32,721	$	27,564
State and Puerto Rico		6,054		4,683		4,065
Total current		41,488		37,404		31,629
Deferred tax provision (benefit)—
Federal		5,391		(2,101)		(1,481)
State and Puerto Rico		(1,213)		862		1,076
Total deferred		4,178		(1,239)		(405)
Provision for income taxes	$	45,666	$	36,165	$	31,224

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results

The provision for income taxes for the years ended December 31, 2017,  2016 and 2015 resulted in effective tax rates on continuing operations of 45.2%,  35.8% and 35.2%, respectively. The reasons for the differences between these effective tax rates and the 35% federal statutory rate are as follows (in thousands):

	December 31,
	2017		2016		2015
Income taxes at the federal statutory rate of 35%	$	35,328	$	35,371	$	31,032
Increases (decreases) resulting from—
Net state income taxes		2,838		4,262		3,432
Valuation allowances		91		(1,254)		463
Net unrecognized tax benefits		153		20		(72)
Noncontrolling interests		—		—		(2,827)
Nondeductible expenses		1,134		825		751
Stock-based compensation deductions		(1,320)		(885)		—
Domestic production activities deduction		(2,112)		(2,026)		(1,701)
Corporate tax rate reduction to 21%		9,478		—		—
Other		76		(148)		146
Provision for income taxes	$	45,666	$	36,165	$	31,224

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the balance sheet

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the balance sheets are as follows (in thousands):

	Year Ended
	December 31,
	2017		2016
Deferred tax assets—
Accounts receivable and allowance for doubtful accounts	$	715	$	1,627
Stock-based compensation		2,297		3,036
Accrued liabilities and expenses		19,555		23,000
Net operating loss carryforwards		6,007		5,053
Goodwill		—		875
Intangible assets		2,272		—
Other		544		759
Subtotal		31,390		34,350
Valuation allowances		(3,500)		(3,184)
Total deferred tax assets		27,890		31,166
Deferred tax liabilities—
Property and equipment		(4,668)		(4,398)
Long-term contracts		(625)		(637)
Goodwill		(1,572)		—
Intangible assets		—		(737)
Other		(322)		(513)
Total deferred tax liabilities		(7,187)		(6,285)
Net deferred tax assets	$	20,703	$	24,881

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and liabilities as of December 31, 2017 were remeasured to account for the corporate tax rate reduction to 21%, resulting in an increase to the provision for income taxes of $9.5 million. The deferred tax assets and liabilities reflected above are included in the consolidated balance sheets as follows (in thousands):

	December 31,
	2017		2016
Deferred tax assets	$	22,966	$	27,170
Deferred tax liabilities	$	2,263	$	2,289

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):

	Year Ended
	December 31,
	2017		2016		2015
Balance at beginning of year	$	240	$	240	$	343
Additions based on tax positions related to current year		8,689		—		—
Additions based on tax positions related to prior years		—		—		—
Reductions for tax positions related to prior years		—		—		(103)
Reductions for settlements with tax authorities		—		—		—
Balance at end of year	$	8,929	$	240	$	240