Note 23—Income Taxes

The components of the provision for income taxes are as follows:


	2016		2015		2014
Current provision (benefit)
Federal	$	4,726	$	26,948	$	28,203
State		5,423		3,640		5,398
Foreign		92		362		1,074
		10,241		30,950		34,675
Deferred provision (benefit)
Federal		11,560		(7,099)		3,586
State		(727)		155		457
Foreign		72		(60)		(72)
		10,905		(7,004)		3,971
Total	$	21,146	$	23,946	$	38,646

A reconciliation of income tax expense compared to the amount of income tax expense that would result by applying the U.S. federal statutory income tax rate to pre-tax income is as follows:


	2016	2015	2014
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
State taxes, net of federal income tax impact	6.38%	4.20%	4.66%
Foreign tax credit	(0.35)%	(0.50)%	(0.98)%
Canadian income tax	0.35%	0.50%	0.98%
Domestic production activities deduction	(1.10)%	(3.91)%	(3.07)%
Nondeductible meals & entertainment	5.36%	5.09%	3.38%
Other items	(1.46)%	(1.01)%	(2.01)%
Effective tax rate on income before provision for income taxes excluding income attributable to noncontrolling interests	44.18%	39.37%	37.96%
Impact of income from noncontrolling interests on effective tax rate	(0.91)%	(0.18)%	(0.19)%
Effective tax rate on income before provision for income taxes and noncontrolling interests	43.27%	39.19%	37.77%

Deferred income taxes are recognized for temporary differences between the financial reporting basis of the assets and liabilities and their respective tax basis and operating losses, capital losses and tax credit carry-forwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based upon consideration of available evidence, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies.

The tax effect of temporary differences that give rise to deferred income taxes for the year ended December 31, 2016 and 2015 are as follows:


	2016		2015
Deferred tax assets:
Accrued compensation	$	5,804	$	9,673
Accrued workers compensation		9,855		10,058
Capital loss carryforward		1,077		1,800
Foreign tax credit		1,349		1,293
Insurance reserves		3,248		5,489
Loss reserves		4,841		2,887
Pension liability		1,979		2,805
State income taxes		2,011		469
Other		288		882
Total deferred tax assets		30,452		35,356
Deferred tax liabilities
Depreciation and amortization		(38,327)		(33,304)
Prepaid expenses and other		(1,955)		(977)
Total deferred tax liabilities		(40,282)		(34,281)
Net deferred tax assets (liabilities)	$	(9,830)	$	1,075

As of December 31, 2016, the tax effects of capital loss carryforwards were $1,077; state net operating losses were $486; and foreign tax credits were $1,349. These carryforwards will begin to expire in 2019, 2021 and 2019, respectively. The Company believes it is more likely than not that it will realize the benefit of the deferred tax assets.

The Company’s federal tax returns are subject to examination by the Internal Revenue Service for tax years after 2012. The statutes of limitation of state and foreign jurisdictions vary generally between 3 to 5 years. Accordingly, the tax years 2011 through 2015 remain open to examination by the state and foreign jurisdiction in which the Company operates.

A reconciliation of the beginning and ending amounts and aggregate changes in the balance of unrecognized tax benefits for each period is as follows:


	2016		2015		2014
Beginning balance	$	—	$	456	$	5,382
Increases in balances for tax positions taken during the current year		—		—		—
Increases in balances for tax positions taken during prior years		—		—		—
Settlements and effective settlements with tax authorities		—		(456)		(4,878)
Lapse of statute of limitations		—		—		(48)
Total	$	—	$	—	$	456

The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense, which were not material for the three years presented.