Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Significant components of net deferred tax assets and net deferred tax liabilities

Significant components of the net deferred tax assets as reflected on the Consolidated Balance Sheets are as follows:



	December 31,
	2017			2016
	(in thousands)
Deferred tax liabilities:
Prepaid assets	$	(3,957	)	$	(7,133	)
Depreciation	(2,021		)	(936		)
Software development costs	(3,732		)	(3,960		)
Total deferred tax liabilities	(9,710		)	(12,029		)

Deferred tax assets:
Accrued incentive compensation	3,510			8,590
Net operating loss carryforward	774			1,300
Workers’ compensation accruals	4,586			7,891
Accrued rent	676			1,092
Stock-based compensation	4,233			6,217
Intangibles	4			618
Minority investment impairment	667			1,021
Other	212			349
Total deferred tax assets	14,662			27,078
Valuation allowance	(669		)	(1,024		)
Total net deferred tax assets	13,993			26,054

Net deferred tax assets	$	4,283		$	14,025

Components of income tax expense

The components of income tax expense are as follows:



	Year ended December 31,
	2017		2016		2015
	(in thousands)
Current income tax expense:
Federal	$	30,009	$	31,045	$	35,221
State	5,988		5,190		5,741
Total current income tax expense	35,997		36,235		40,962
Deferred income tax (benefit) expense:
Federal	9,549		2,641		(13,632		)
State	193		310		(1,101		)
Total deferred income tax (benefit) expense	9,742		2,951		(14,733		)
Total income tax expense	$	45,739	$	39,186	$	26,229

Reconciliation of income tax expense

The reconciliation of income tax expense computed at U.S. federal statutory tax rates to the reported income tax expense from continuing operations is as follows:



	Year ended December 31,
	2017			2016			2015
	(in thousands)
Expected income tax expense at 35%	$	45,549		$	36,812		$	22,967
State income taxes, net of federal benefit	4,085			3,684			2,696
Nondeductible expenses	2,649			1,669			1,669
Section 199 benefits	(875		)	(686		)	(627		)
Equity compensation	(6,218		)	(1,338		)	—
Research and development credit	(634		)	(751		)	(530		)
Disaster employee retention credit	(669		)	—			—
Enactment of the 2017 Tax Reform Act	2,559			—			—
Other, net	(707		)	(204		)	54
Reported total income tax expense	$	45,739		$	39,186		$	26,229