Note 14.

Income Taxes

All of our income is generated in the U.S. The components of income tax expense were as follows (in thousands):

	Year Ended December 31,
	2014		2013		2012
Current federal	$	1,079	$	746	$	292
Current state		234		184		201
		1,313		930		493

Deferred federal		595		305		1,116
Deferred state		114		69		342
		709		374		1,458
	$	2,022	$	1,304	$	1,951

Income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before income taxes as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Provision at U.S. statutory rate	$	1,734		$	1,109		$	1,522
State taxes, net of federal benefit		217			182			148
Permanent differences, primarily meals and entertainment		304			198			232
Domestic production activities deduction		(113	)		(98	)		-
Tax credits		(120	)		(87	)		(104	)
Increase to deferred tax liability tax rate		-			-			153
	$	2,022		$	1,304		$	1,951

Significant components of our deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2014			2013
Deferred tax assets
Net operating losses and alternative minimum tax credit carryforwards	$	364		$	470
Accrued salaries and severance		1,150			922
Other		1,153			918
		2,667			2,310

Deferred tax liabilities
Property, equipment and leasehold improvements		(13,139	)		(12,158	)
Intangible assets		(6,240	)		(6,323	)
Other		(188	)		(203	)
		(19,567	)		(18,684	)
	$	(16,900	)	$	(16,374	)

As of December 31, 2014, included in our net operating losses and alternative minimum tax credit carryforwards were the following (in thousands):

State NOLs, tax effected		$	32
Federal alternative minimum tax credit carryforwards		$	332

In assessing the realizability of our deferred tax assets, we consider future taxable income expected to be generated by the projected differences between financial statement depreciation and tax depreciation, cumulative earnings generated to date and other evidence available to us. Based upon this consideration, we assessed that all of our deferred taxes are more likely than not to be realized, and, as such, we have not recorded a valuation allowance as of December 31, 2014 or 2013.

There were no unrecognized tax benefits as of December 31, 2014 or 2013 and we do not anticipate significant changes to our unrecognized tax benefits within the next twelve months.

Our major tax jurisdictions include U.S. federal and various U.S. states. Tax years that remain open for examination by the IRS include the years from 2011 through 2014. Tax years remaining open in states where we have a significant presence range from 2010 to 2014. In addition, tax years from 1998 to 2004 and 2008 are eligible for examination by the IRS and state tax jurisdictions due to our utilization of the NOLs generated in these tax years in our tax returns.