Income Taxes

The following table summarizes the provision for income taxes:



	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Current:
Federal	$	33,032	$	11,917	$	21,030
State	6,958		2,173		4,095
	$	39,990	$	14,090	$	25,125
Deferred:
Federal	$	2,163	$	13,646	$	(12,708	)
State	838		4,004		(2,559		)
	$	3,001	$	17,650	$	(15,267	)
Tax provision	$	42,991	$	31,740	$	9,858

Deferred income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax basis of assets and liabilities.

Significant components of our federal and state deferred tax assets and liabilities are as follows:



	Year Ended December 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	2,672		$	1,819
Deferred compensation	8,532			9,191
Accrued insurance claims	5,862			5,786
Non-deductible reserves	1,257			4,490
Amortization of intangibles	624			971
Other	858			10
	$	19,805		$	22,267
Deferred tax liabilities:
Expensing of housekeeping supplies	$	(6,752	)	$	(6,463	)
Depreciation of property and equipment	(2,568		)	(3,237		)
Other	(663		)	—
	$	(9,983	)	$	(9,700	)

Net deferred tax assets	$	9,822		$	12,567

Realization of the Company’s deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Management assesses the Company’s income tax positions and records tax benefits for all years subject to examination based upon an evaluation of the facts, circumstances, and information available at the reporting dates, which include historical operating results and expectations of future earnings. As such, management believes it is more likely than not that the deferred tax assets recorded will be realized to reduce future income taxes and therefore no valuation allowances are necessary.

The tables below provide a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes:



	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Income tax expense computed at statutory rate	$	42,136		$	31,418		$	11,098
Increases (decreases) resulting from:
State income taxes, net of federal tax benefit	5,064			4,015			998
Federal jobs credits	(4,550		)	(3,900		)	(2,925		)
Tax exempt interest	(457		)	(132		)	(13		)
Other, net	798			339			700
Income tax expense	$	42,991		$	31,740		$	9,858

Management performs an evaluation each period of its tax positions taken and expected to be taken in tax returns. The evaluation is performed on positions relating to tax years that remain subject to examination by major tax jurisdictions, the earliest of which is the tax year ended December 31, 2011. Based on our evaluation, management has concluded that there are no significant uncertain tax positions requiring recognition in our financial statements. Therefore, the table reporting on the change in the liability for unrecognized tax benefits during the year ended December 31, 2016 is omitted as there is no activity to report in such account for the year ended December 31, 2016, and there was no balance of unrecognized tax benefits at the beginning of the year.

We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. In the event we have received an assessment for interest and/or penalties, it has been classified in the financial statements as selling, general and administrative expense.