INCOME TAXES

The components of earnings before income taxes consisted of the following for the years ended December 31:



(In thousands)	2016		2015		2014
United States	$	196,827	$	113,280	$	95,057
Foreign	2,345		1,089		—
Total earnings before income taxes	$	199,172	$	114,369	$	95,057

The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31:



(In thousands)	2016			2015		2014
Current:
Federal	$	61,073		$	31,132	$	32,142
State and local	10,560			7,670		6,142
Foreign	466			160		—
Total current provision	72,099			38,962		38,284
Deferred:
Federal	(2,506		)	466		(4,545		)
State and local	(110		)	596		(948		)
Foreign	18			—		—
Total deferred provision	(2,598		)	1,062		(5,493		)
Provision for income taxes	$	69,501		$	40,024	$	32,791

The provision for income taxes differs from the amount computed by applying the federal statutory rate to income before income taxes for the following reasons for the years ended December 31:



(In thousands)	2016			2015			2014
Income tax at federal statutory rate	$	69,710		$	40,029		$	33,270
State income tax, net of federal income tax impact	6,480			4,386			3,376
Foreign tax rate differential	(614		)	(82		)	—
Manufacturing credit pursuant to Jobs Creation Act	(5,067		)	(2,336		)	(2,258		)
Federal tax credits	(1,736		)	(919		)	(681		)
Other	728			(1,054		)	(916		)
Provision for income taxes	$	69,501		$	40,024		$	32,791

At December 31, 2016, federal income taxes receivable of $12.7 million and state income taxes receivable of $0.4 million were included in prepaid expenses and other current assets. At December 31, 2015, federal and state income taxes receivable of $8.1 million were included in prepaid expenses and other current assets, and state income taxes payable of $0.4 million were included in accrued expenses and other current liabilities.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31:



(In thousands)	2016			2015
Deferred tax assets:
Goodwill and other intangible assets	$	10,952		$	11,879
Stock-based compensation	7,550			7,428
Deferred compensation	5,184			5,310
Warranty	11,679			8,809
Inventory	6,572			5,974
Other	5,000			4,922
Total deferred tax assets	46,937			44,322
Deferred tax liabilities:
Fixed assets	(14,948		)	(14,931		)
Net deferred tax assets	$	31,989		$	29,391

The Company concluded it is more likely than not the deferred tax assets at December 31, 2016 will be realized in the ordinary course of operations based on projected future taxable income and scheduling of deferred tax liabilities.

Excess tax benefits on stock-based compensation of $8.0 million, $9.0 million and $3.9 million were credited directly to stockholders’ equity during the years ended December 31, 2016, 2015 and 2014, respectively, relating to tax benefits which exceeded the compensation cost for stock-based compensation recognized in the Consolidated Financial Statements.

At December 31, 2016, the remaining pool of excess tax benefits from prior exercises of stock-based compensation in stockholders’ equity was $31.5 million.

Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, at December 31:



(In thousands)	2016			2015			2014
Balance at beginning of period	$	2,854		$	1,526		$	1,369
Changes in tax positions of prior years	214			912			84
Additions based on tax positions related to the current year	1,252			866			603
Payments	—			(85		)	—
Closure of tax years	(573		)	(365		)	(530		)
Balance at end of period	$	3,747		$	2,854		$	1,526

In addition, the total amount of accrued interest and penalties related to taxes, recognized as a liability, was $0.2 million, $0.2 million and $0.2 million at December 31, 2016, 2015 and 2014, respectively.

The total amount of unrecognized tax benefits, net of federal income tax benefits, of $2.9 million, $2.7 million and $1.2 million at December 31, 2016, 2015 and 2014, respectively, would, if recognized, increase the Company’s earnings, and lower the Company’s annual effective tax rate in the year of recognition.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company periodically undergoes examinations by the Internal Revenue Service (“IRS”), as well as various state and foreign taxing authorities. The IRS and other taxing authorities may challenge certain deductions and positions reported by the Company on its income tax returns. For U.S. federal income tax purposes, the tax year 2014 is currently under audit, while tax years 2013 and 2015 remain subject to examination. For Indiana state income tax purposes, the tax years 2013 through 2015 remain subject to examination. Approximately 80 percent of the Company’s operations are located in Indiana. In other major jurisdictions, open years are generally 2013 or later.

The Company has assessed its risks associated with all tax return positions, and believes its tax reserve estimates reflect its best estimate of the deductions and positions it will be able to sustain, or it may be willing to concede as part of a settlement. At this time, the Company cannot estimate the range of reasonably possible change in its tax reserve estimates in 2017. While these tax matters could materially affect operating results when resolved in future periods, it is management’s opinion that after final disposition, any monetary liability or financial impact to the Company beyond that provided for in the Consolidated Balance Sheet as of December 31, 2016, would not be material to the Company’s financial position or annual results of operations.