9. INCOME TAXES

The provision for income taxes consisted of the following:


	Years Ended December 31,
	2016		2015		2014
Current:
Federal	$	23,923	$	23,872	$	22,612
State		4,913		5,116		4,863
Total current		28,836		28,988		27,475
Deferred:
Federal		2,920		2,220		991
State		586		432		221
Total deferred		3,506		2,652		1,212
Net provision	$	32,342	$	31,640	$	28,687

The components of the deferred taxes at December 31, 2016 and 2015 are as follows:


	2016		2015
Deferred tax assets:
Provisions for doubtful accounts	$	751	$	879
Inventory costs capitalized for tax purposes		157		177
Inventory valuation reserves		331		652
Sales return reserves		218		190
Deductible expenses, primarily employee-benefit related		745		713
Accrued compensation		2,662		2,999
State tax liability		110		235
Revenue deferral		565		797
Other		1,076		1,276
Compensation under non-statutory stock option agreements		499		565
State tax loss carryforwards		618		505
Federal benefit for uncertain state tax positions		480		641
Total gross deferred tax assets		8,212		9,629
Less: Valuation allowance		(485)		(383)
Net deferred tax assets		7,727		9,246

Deferred tax liabilities:
Goodwill and other intangibles		(17,776)		(15,868)
Property and equipment		(9,553)		(7,084)
Total gross deferred tax liabilities		(27,329)		(22,952)
Net deferred tax liability	$	(19,602)	$	(13,706)


Current deferred tax assets	$	—	$	7,909
Noncurrent deferred tax liability		(19,602)		(21,615)
Net deferred tax liability	$	(19,602)	$	(13,706)

We have state net operating loss carryforwards aggregating $951 at December 31, 2016 representing state tax benefits, net of federal taxes, of approximately $618. These loss carryforwards are subject to between five, fifteen, and twenty-year carryforward periods, with $8 expiring after 2017, $6 expiring after 2018, $5 expiring after 2019, $2 expiring after 2021, and $927 expiring beyond 2022. We have provided valuation allowances of $485 and $383 at December 31, 2016 and 2015, respectively, against the state tax loss carryforwards, representing the portion of carryforward losses that we believe are not likely to be realized. The net change in the total valuation allowance reflects a $102, $70, and $64 increase in 2016, 2015, and 2014, respectively. The valuation allowance was increased in 2016, 2015, and 2014 to offset the corresponding increase to the deferred tax asset associated with state net operating loss carryforwards.

A reconciliation of our 2016, 2015, and 2014 income tax provision to total income taxes at the statutory federal tax rate is as follows:


	2016		2015		2014
Federal income taxes, at statutory tax rate	$	28,159	$	27,463	$	24,979
State income taxes, net of federal benefit		3,947		3,962		3,459
Nondeductible expenses		602		538		503
Other–net		(366)		(323)		(254)
Tax provision	$	32,342	$	31,640	$	28,687

We file one consolidated U.S. Federal income tax return that includes all of our subsidiaries as well as several consolidated, combined, and separate company returns in many U.S. state tax jurisdictions. The Internal Revenue Service completed its review of the income tax return for the 2012 tax year with no changes to the reported tax. The tax years 2012-2015 remain open to examination by the major state taxing jurisdictions in which we file. The tax years 2013-2015 remain open to examination by the Internal Revenue Service.

A reconciliation of unrecognized tax benefits for 2016, 2015, and 2014, is as follows:


	2016		2015		2014
Balance at January 1,	$	869	$	892	$	1,008
Additions on tax positions of prior years		—		106		—
Lapses of applicable statute of limitations		(185)		(129)		(116)
Balance at December 31,	$	684	$	869	$	892

We recognize interest and penalties related to unrecognized income tax benefits as a component of income tax expense, and the corresponding accrual is included as a component of our liability for unrecognized income tax benefits. During the years ended December 31, 2016, 2015, and 2014, we recognized interest and penalties totaling $62, $110, and $80, respectively. At December 31, 2016 and 2015, accrued interest aggregated $693 and $967, respectively, and accrued penalties aggregated $171 and $218, respectively. As of December 31, 2016 and 2015, all unrecognized tax benefits and the related interest and penalties, if recognized, would favorably affect our effective tax rate.

We do not anticipate that total unrecognized tax benefits will change significantly due to the settlement of audits, expiration of statutes of limitations, or other reasons in the next twelve months.