INCOME TAXES

A reconciliation of income tax expense (benefit), computed by applying the federal statutory rate to pre-tax income (loss) to our effective income tax expense (benefit) is as follows:



	2016			2015			2014
	(In thousands)
Income tax expense (benefit) computed by applying the statutory rate	$	(72,386	)	$	(582,508	)	$	78,029
State income tax expense (benefit), net of federal benefit	(5,687		)	(45,768		)	6,131
Restricted stock shortfall	5,465			—			—
Statutory depletion and other	1,414			1,328			2,503
Income tax expense (benefit)	$	(71,194	)	$	(626,948	)	$	86,663

For the periods indicated, the total provision for income taxes consisted of the following:



	2016			2015			2014
	(In thousands)
Current taxes:
Federal	$	—		$	(20,612	)	$	8,594
State	15			(4		)	784
	15			(20,616		)	9,378
Deferred taxes:
Federal	(62,923		)	(535,691		)	68,360
State	(8,286		)	(70,641		)	8,925
	(71,209		)	(606,332		)	77,285
Total provision	$	(71,194	)	$	(626,948	)	$	86,663

Deferred tax assets and liabilities are comprised of the following at December 31:



	2016			2015
	(In thousands)
Deferred tax assets:
Allowance for losses and nondeductible accruals	$	53,967		$	56,479
Net operating loss carryforward	190,603			140,863
Alternative minimum tax and research and development tax credit carryforward	5,409			5,409
	249,979			202,751
Deferred tax liability:
Depreciation, depletion, amortization, and impairment	(440,690		)	(464,295		)
Net deferred tax liability	(190,711		)	(261,544		)
Current deferred tax asset	25,211			14,206
Non-current—deferred tax liability	$	(215,922	)	$	(275,750	)

Realization of the deferred tax assets are dependent on generating sufficient future taxable income. Although realization is not assured, management believes it is more likely than not that the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near-term if estimates of future taxable income are reduced. At December 31, 2016, we have federal net operating loss carryforwards of approximately $485.0 million which expire from 2021 to 2036.

We file income tax returns in the U.S. federal jurisdiction and various states. We are no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2013. During 2014, we recognized a tax benefit relating to a research and development tax credit carryforward in conjunction with our BOSS drilling rig activities. Due to the nature and subjectivity surrounding the research and development credit and historical challenges by the IRS against companies who claim the credit, it is our belief that the full amount of the credit may not be eventually allowed by the IRS once we are no longer in an AMT tax paying position. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2016		2015		2014
	(In thousands)
Balance at January 1:	$	410	$	410	$	—
Additions based on tax positions related to current year	—		—		410
Additions for tax positions of prior years	—		—		—
Reductions for tax positions of prior years	—		—		—
Settlements	—		—		—
Balance at December 31:	$	410	$	410	$	410

At December 31, 2016, 2015, and 2014, there was $0.4 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate.