INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2014			2015			2016
Current:
Federal	$	24,741		$	10,295		$	32,198
State	2,761			1,503			3,682
Foreign	53			40			76
Total current	27,555			11,838			35,956
Deferred:
Federal	(698		)	(7,475		)	13,641
State	(813		)	1,683			1,959
Foreign	—			—			35
Total deferred	(1,511		)	(5,792		)	15,635
Total provision for income taxes	$	26,044		$	6,046		$	51,591

Schedule of deferred tax assets and liabilities

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



	December 31,
	2015			2016
Deferred tax assets:
Reserve for bad debts	$	2,849		$	2,437
Accrued compensation	10,725			5,562
Stock compensation	12,686			14,268
Net operating losses	36,406			30,319
Accrued reserve and other	3,515			2,097
Unrealized loss on securities	377			326
Deferred rent	7,274			7,814
Deferred revenue	2,243			—
Deferred gain on the sale of building	9,128			8,166
Total deferred tax assets, prior to valuation allowance	85,203			70,989

Valuation allowance	(9,347		)	(8,557		)
Total deferred tax assets, net of valuation allowance	75,856			62,432

Deferred tax liabilities:
Prepaids	(1,335		)	(1,753		)
Depreciation	(13,047		)	(13,045		)
Intangibles	(56,952		)	(58,747		)
Total deferred tax liabilities	(71,334		)	(73,545		)

Net deferred tax assets (liabilities)	$	4,522		$	(11,113	)

Schedule of effective income tax rate reconciliation


10.	INCOME TAXES — (CONTINUED)

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,
	2014			2015			2016
Expected federal income tax provision at statutory rate	$	24,820		$	903		$	47,832
State income taxes, net of federal benefit	1,965			(678		)	3,638
Foreign income taxes, net effect	336			469			(31		)
Increase (decrease) in valuation allowance	(2,397		)	1,956			(103		)
Nondeductible compensation	554			574			141
Nondeductible transaction costs	—			229			103
Meals and entertainment	415			1,032			712
Tax rate changes	61			1,203			283
Research credits	—			—			(920		)
Other adjustments	290			358			(64		)
Income tax expense, net	$	26,044		$	6,046		$	51,591

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, 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
Increase for current year tax positions	368
Decrease for prior year tax positions	(6,115		)
Expiration of the statute of limitation for assessment of taxes	(74		)
Unrecognized tax benefits as of December 31, 2016	$	1,843