11.	INCOME TAXES

Income before provision for income taxes, and the related provision for income taxes, for the years ended December 31 2015, 2014 and 2013, were as follows:

	Years Ended December 31,
	2015		2014			2013
Income before provision for income taxes	$	60,701	$	63,226		$	77,822
Provision for income taxes
Current:
Federal	$	17,241	$	21,728		$	15,391
State		2,270		2,967			428
Total current		19,511		24,695			15,819
Deferred (prepaid):
Federal		3,027		(200	)		(1,713	)
State		34		208			(582	)
Total deferred (prepaid)		3,061		8			(2,295	)
Total provision for income taxes	$	22,572	$	24,703		$	13,524

The Company’s effective income tax rate was 37.2% for the year ended December 31, 2015, compared to 39.1% for the year ended December 31, 2014. This difference in rates results primarily due to a true up to the impact of the sale of the global data business during the year ended December 31, 2014 and a reassessment of the recoverability of the deferred tax assets for Illinois EDGE and R&D credits. The change in the effective tax rate of 39.1% for the year ended December 31, 2014 compared to 17.4% for the year ended December 31, 2013 was due to the sale of the global data business during the year ended December 31, 2013.

A reconciliation of the federal statutory rate to our effective tax rate is as follows:

	December 31,
	2015			2014			2013
Statutory federal rate		35.0	%		35.0	%		35.0	%
State income tax, net of federal benefit		2.8	%		3.4	%		3.2	%
Illinois state EDGE credit net of valuation allowance		(0.4	)%		(0.2	)%		(1.0	)%
Impact of sale of global data business		—			0.7	%		(15.5	)%
Americas Data assets allocation		—			—			(4.7	)%
Other		(0.2	)%		0.2	%		0.4	%
Effective income tax rate		37.2	%		39.1	%		17.4	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Effective December 31, 2015, the Company reclassified net current deferred tax assets to net non-current deferred tax assets as described in Note 2 “Summary of Significant Accounting Policies-Recent Accounting Pronouncements.” Significant components of the Company’s deferred income taxes are as follows:

	December 31,
	2015			2014
Deferred tax assets and liabilities
Deferred tax assets:
Stock option compensation	$	5,313		$	5,232
State credit carry forward		1,725			2,380
Capital loss on sale of Tinet stock		21,531			21,580
Accrued other		3,320			3,075
Total deferred tax assets		31,889			32,267
Deferred tax liabilities:
Depreciation		(7,102	)		(3,898	)
Prepaids		(1,008	)		(732	)
Total deferred tax liabilities		(8,110	)		(4,630	)
Valuation allowance		(22,720	)		(23,517	)
Net deferred income tax asset	$	1,059		$	4,120

The Company evaluates its deferred income taxes quarterly to determine if a valuation allowance is required or should be adjusted. The Company assesses whether a valuation allowance should be established against deferred tax assets based upon consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, forecasts of future profitability, the duration of statutory carry-forward periods, the Company’s experience with tax attributes expiring unused and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified.

A valuation allowance has been established against the deferred tax asset resulting from the sale of Tinet stock and a partial valuation allowance has been established against the deferred income tax asset related to the Illinois EDGE and R&D credits. The valuation allowance of $21.5 million was established for the deferred tax asset related to the capital loss from the sale of Tinet stock after weighing all available evidence, both positive and negative, including the potential for the Company to have sufficient capital gains to be offset by the capital losses during the five year carryforward period. The Company’s Illinois EDGE and R&D credits can also be carried forward five years. During the year ended December 31, 2015, the Company released $0.7 million of the valuation allowance related to the Illinois EDGE and R&D credits. The Company now has a partial valuation allowance of $1.2 million for the Illinois EDGE and R&D credits deferred income tax asset as the Company believes it is more likely than not that future taxable income will be insufficient to realize the full benefit of the credit.

The Company files income tax returns in the U.S. federal jurisdiction, and various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2012. The Internal Revenue Service (“IRS”) has commenced an examination of the Company’s 2013 federal income tax return. As of December 31, 2015, the IRS has not proposed any material adjustments to such income tax return. Audit outcomes and timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next twelve months, the Company will resolve any matters that may arise during the audit of the Company’s 2013 federal income tax return.

The Company’s liabilities for uncertain tax positions were $0.1 million at December 31, 2015 and December 31, 2014, respectively. Differences result from uncertain tax positions related to the R&D credits earned for 2013, 2014 and 2015. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows:

	2015			2014
Balance at January 1	$	75		$	40
Increases related to prior periods		42			8
Increases related to current year		27			27
Lapse of statute of limitations		(25	)		—
Balance on December 31	$	119		$	75

The Company recognizes accrued interest and penalties related to its unrecognized tax benefits as income tax expense.