Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of income tax expense (benefit)

The components of income tax expense for the years ended December, 31 2018, 2017 and 2016 are as follows:



(in thousands)	2018		2017		2016
Current
Federal	$	32,042	$	20,215	$	16,713
State	3,868		1,869		1,124
	35,910		22,084		17,837
Deferred
Federal	160		1,797		(3,049		)
State	1,106		521		(522		)
	1,266		2,318		(3,571		)
	$	37,176	$	24,402	$	14,266

Effective income tax rate reconciliation

A reconciliation of differences between the statutory U.S. federal income tax rate and the Company’s effective tax rate from continuing operations for the years ended December 31, 2018, 2017 and 2016 follows:



	2018		2017		2016
Federal statutory rate	21.0	%	35.0	%	35.0	%
State taxes, net of federal tax	2.6		2.9		2.7
Nondeductible capitalized transaction costs	—		0.2		1.4
Nondeductible compensation expense	0.2		0.2		0.5
Nondeductible (permanent) items	0.2		0.9		1.0
IRC Section 199 manufacturing deduction	0.1		(2.5	)	(3.5	)
Changes in tax rates, including 2017 Tax Act	(0.2	)	(4.4	)	1.6
Changes related to IRC section 382 limitations	—		—		(3.9	)
Excess windfall benefit of stock compensation	(0.2	)	(2.3	)	(3.7	)
Other items	—		(0.2	)	0.5
Effective tax rate	23.7	%	29.8	%	31.6	%

Components of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31, 2018 and 2017:



(in thousands)	2018			2017
Deferred tax assets related to:
Accounts receivable	$	2,278		$	2,061
Inventory	2,631			1,931
Accrued compensation	6,783			2,981
Insurance reserves	11,545			10,778
Stock-based compensation	3,399			2,388
Restructuring reserves	325			365
Other accrued liabilities	1,514			1,149
Federal net operating loss carryforward	16,349			17,372
State net operating loss carryforward	3,882			5,559
Other	1,915			1,633
	50,621			46,217
Valuation allowance	(145		)	(145		)
Total deferred tax assets	50,476			46,072

Deferred tax liabilities related to:
Goodwill and intangibles	(21,946		)	(21,030		)
Property and equipment	(29,684		)	(25,440		)
Other assets	(1,880		)	(1,370		)
Total deferred tax liabilities	(53,510		)	(47,840		)
Net deferred tax liability	$	(3,034	)	$	(1,768	)

Changes in valuation allowance

The following table shows the changes in the amount of the Company’s valuation allowance:



(in thousands)	2018		2017		2016
Balance at January 1,	$	145	$	125	$	126
Additions charged to expense	—		20		—
Additions charged to Goodwill/Purchase Accounting	—		—		—
Deductions - other	—		—		(1		)
Balance at December 31,	$	145	$	145	$	125