Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

The provision (benefit) for income taxes consists of:

	Year Ended December 31,
	2015			2014			2013
Current:
Federal	$	3,166		$	9,123		$	8,675
State		392			1,083			1,021
Total current		3,558			10,206			9,696
Deferred:
Federal		(436	)		(794	)		(1,290	)
State		(49	)		(129	)		(195	)
Total deferred		(485	)		(923	)		(1,485	)
Total	$	3,073		$	9,283		$	8,211

A reconciliation of the U.S. Federal statutory tax rate to the effective tax rate on income before taxes is as follows:

	Year Ended December 31,
	2015			2014			2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		4.1			2.7			3.9
Impairment, non-deductible portion		20.0			—			11.5
Share-based compensation deficit		3.7			—			—
Non-deductible items		3.0			0.7			1.1
Other		(5.7	)		(0.1	)		(0.6	)
Total effective tax rate		60.1	%		38.3	%		50.9	%

The share-based compensation deficit resulted in incremental income tax expense, because the grant date fair value of share-based payments exceeded the actual tax deductions realized, either upon exercise or vesting or due to forfeitures. As the Company has exhausted the excess tax benefits arising from stock-based compensation transactions (APIC pool), any future net deficits will result in incremental income tax expense, and will likely negatively impact the effective tax rate. The other credit includes the impact of over accruals of both federal and state taxes in earlier years.

Significant components of the Company’s deferred taxes were as follows:

	Year Ended December 31,
	2015		2014
Deferred tax assets:
Uniform capitalization adjustment	$	1,240	$	1,219
Inventory reserve		1,835		1,724
Allowance for doubtful accounts		50		53
Stock compensation expense		1,900		2,053
Property and equipment		109		136
Other		77		128
Total deferred tax assets		5,211		5,313
Deferred tax liabilities
Goodwill		601		405
Intangibles		1,148		1,895
Other		124		—
Total deferred tax liabilities		1,873		2,300
Net deferred tax assets	$	3,338	$	3,013

The Company recognizes interest on any tax issue as a component of interest expense and any related penalties in other operating expenses. As of December 31, 2015, 2014 and 2013, the Company recorded no provision for interest or penalties related to uncertain tax positions. The tax years 2011 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject.