INCOME TAXES

The Company’s federal and state income tax provision (benefit) from continuing operations is summarized in the following table (in thousands):



	Year Ended December 31,
	2015			2014			2013
Current
Federal	$	—		$	(886	)	$	(866	)
State	(76		)	(41		)	(1,412		)
Total current	(76		)	(927		)	(2,278		)
Deferred
Federal	(18,293		)	9,951			3,281
State	(3,163		)	2,169			257
Total deferred	(21,456		)	12,120			3,538
Total tax provision (benefit)	$	(21,532	)	$	11,193		$	1,260

The effect of temporary differences that give rise to a significant portion of deferred taxes is as follows (in thousands):



	December 31,
	2015			2014
Deferred tax assets:
Reserves not currently deductible	$	27,467		$	28,387
Net operating loss carryforwards	91,350			65,097
Goodwill and intangibles (tax deductible)	34,983			8,458
Accrued expenses	654			32
Property basis differences	1,021			301
Stock based compensation	8,245			8,201
Other	715			610
Total deferred tax assets	164,435			111,086
Deferred tax liabilities:
Indefinite-lived goodwill and intangibles	(236		)	(18,118		)
Less: valuation allowance	(164,435		)	(111,086		)
Net deferred tax liability	(236		)	(18,118		)
Deferred taxes	$	(236	)	$	(18,118	)

The Company continually assesses the necessity of a valuation allowance. Based on this assessment, the Company concluded that a valuation allowance, in the amount of $164.4 million and $111.1 million, was required as of December 31, 2015 and 2014, respectively. If the Company determines in a future period that it is more likely than not that part or all of the deferred tax assets will be realized, the Company will reverse part or all of the valuation allowance.

At December 31, 2015, the Company had federal net operating loss (“NOL”) carryforwards of approximately $243.0 million, of which $18.4 million is subject to an annual limitation, which will begin expiring in 2026 and later. Of the Company’s $243.0 million federal NOLs, $18.0 million will be recorded in additional paid-in capital when realized as these NOLs are related to the exercise of non-qualified stock options and restricted stock grants. The Company has post-apportioned state NOL carryforwards of approximately $322.7 million, the majority of which will begin expiring in 2017 and later.

The Company’s reconciliation of the statutory rate to the effective income tax rate from continuing operations is as follows (in thousands):



	Year Ended December 31,
	2015			2014			2013
Tax (benefit) provision at statutory rate	$	(113,736	)	$	(48,554	)	$	(24,633	)
State tax (benefit) provision, net of federal taxes	(8,356		)	(3,959		)	(3,239		)
Valuation allowance changes affecting income tax expense	57,023			63,641			29,805
Change in tax contingencies	(37		)	(109		)	(1,157		)
Non-deductible transaction costs	—			—			317
Goodwill impairment	43,362			—			—
Other	212			174			167
Tax provision (benefit)	$	(21,532	)	$	11,193		$	1,260

As of December 31, 2015, the Company had $1.1 million of gross unrecognized tax benefits, of which $0.1 million, if recognized, would favorably affect the effective income tax rate in future periods. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,
	2015			2014			2013
Unrecognized tax benefits balance at January 1,	$	1,096		$	1,172		$	2,754
Lapse of statute of limitations	(29		)	(76		)	(1,582		)
Unrecognized tax benefits balance at December 31,	$	1,067		$	1,096		$	1,172

The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of income tax expense in the Consolidated Statements of Operations. As of December 31, 2015 and 2014, the Company had approximately $0.1 million and $0.1 million of accrued interest related to uncertain tax positions, respectively.

The Company files income tax returns, including returns for its subsidiaries, with federal, state and local jurisdictions. The Company’s uncertain tax positions are related to tax years that remain subject to examination. As of December 31, 2015, U.S. tax returns for the years 2011 through 2014 remain subject to examination by federal tax authorities. Tax returns for the years 2010 through 2014 remain subject to examination by state and local tax authorities for a majority of the Company's state and local filings.