INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of components of income tax expense

The components of the provision for income taxes attributable to operations consist of the following (in thousands):



	Year Ended December 31,
	2013			2014			2015
Current:
Federal	$	26,516		$	24,741		$	10,295
State	3,996			2,761			1,503
Foreign	31			53			40
Total current	30,543			27,555			11,838
Deferred:
Federal	(10,919		)	(698		)	(7,475		)
State	(1,849		)	(813		)	1,683
Foreign	28			—			—
Total deferred	(12,740		)	(1,511		)	(5,792		)
Total provision for income taxes	$	17,803		$	26,044		$	6,046

Schedule of deferred tax assets and liabilities

The components of deferred tax assets and liabilities consist of the following (in thousands):



	December 31,
	2014			2015
Deferred tax assets:
Reserve for bad debts	$	1,825		$	2,849
Accrued compensation	7,287			10,725
Stock compensation	8,758			12,686
Net operating losses	15,665			36,406
Accrued reserve and other	3,360			3,515
Unrealized loss on securities	491			377
Deferred rent	5,902			7,274
Deferred revenue	1,879			2,243
Deferred gain on the sale of building	10,690			9,128
Total deferred tax assets, prior to valuation allowance	55,857			85,203

Valuation allowance	(7,783		)	(9,347		)
Total deferred tax assets, net of valuation allowance	48,074			75,856

Deferred tax liabilities:
Prepaids	(1,258		)	(1,335		)
Depreciation	(9,806		)	(13,047		)
Intangibles	(47,720		)	(56,952		)
Total deferred tax liabilities	(58,784		)	(71,334		)

Net deferred tax assets (liabilities)	$	(10,710	)	$	4,522

Schedule of effective income tax rate reconciliation

The Company’s provision for income taxes resulted in effective tax rates that varied from the statutory federal income tax rate as follows (in thousands):



	Year Ended December 31,
	2013			2014			2015
Expected federal income tax provision at statutory rate	$	16,638		$	24,820		$	903
State income taxes, net of federal benefit	885			1,965			(678		)
Foreign income taxes, net effect	(724		)	336			469
Increase (decrease) in valuation allowance	588			(2,397		)	1,956
Nondeductible compensation	431			554			574
Nondeductible transaction costs	—			—			229
Meals and entertainment	272			415			1,032
Tax rate changes	25			61			1,203
Other adjustments	(312		)	290			358
Income tax expense, net	$	17,803		$	26,044		$	6,046

Schedule of unrecognized tax benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):



Unrecognized tax benefits as of December 31, 2012	$	3,909
Increase for current year tax positions	66
Increase for prior year tax positions	2,037
Expiration of the statute of limitation for assessment of taxes	(55		)
Unrecognized tax benefits as of December 31, 2013	5,957
Increase for current year tax positions	51
Decrease for prior year tax positions	(189		)
Expiration of the statute of limitation for assessment of taxes	(70		)
Unrecognized tax benefits as of December 31, 2014	5,749
Increase for prior year tax positions	1,954
Expiration of the statute of limitation for assessment of taxes	(39		)
Unrecognized tax benefits as of December 31, 2015	$	7,664