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,
	2016			2015			2014
Current
Federal	$	—		$	—		$	(886	)
State	(30		)	(76		)	(41		)
Total current	(30		)	(76		)	(927		)
Deferred
Federal	1,744			(18,293		)	9,951
State	301			(3,163		)	2,169
Total deferred	2,045			(21,456		)	12,120
Total tax provision (benefit)	$	2,015		$	(21,532	)	$	11,193

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



	December 31,
	2016			2015
Deferred tax assets:
Reserves not currently deductible	$	19,249		$	27,467
Net operating loss carryforwards	121,084			91,350
Goodwill and intangibles (tax deductible)	27,549			34,983
Accrued expenses	467			654
Property basis differences	2,578			1,021
Stock based compensation	6,887			8,245
Other	638			715
Total deferred tax assets	178,452			164,435
Deferred tax liabilities:
Indefinite-lived goodwill and intangibles	(2,281		)	(236		)
Less: valuation allowance	(178,452		)	(164,435		)
Net deferred tax liability	(2,281		)	(236		)
Deferred taxes	$	(2,281	)	$	(236	)

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 $178.5 million and $164.4 million, was required as of December 31, 2016 and 2015, 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, 2016, the Company had federal net operating loss (“NOL”) carryforwards of approximately $320.6 million, of which $15.6 million is subject to an annual limitation, which will begin expiring in 2026 and later. Of the Company’s $320.6 million federal NOLs, $18.2 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 $366.2 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,
	2016			2015			2014
Tax (benefit) at statutory rate	$	(11,275	)	$	(113,736	)	$	(48,554	)
State tax (benefit), net of federal taxes	(1,322		)	(8,356		)	(3,959		)
Valuation allowance changes affecting income tax expense	14,017			57,023			63,641
Change in tax contingencies	(66		)	(37		)	(109		)
Goodwill impairment	—			43,362			—
Other	661			212			174
Tax provision (benefit)	$	2,015		$	(21,532	)	$	11,193

As of December 31, 2016, the Company had $1.0 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,
	2016			2015			2014
Unrecognized tax benefits balance at January 1,	$	1,067		$	1,096		$	1,172
Lapse of statute of limitations	(46		)	(29		)	(76		)
Unrecognized tax benefits balance at December 31,	$	1,021		$	1,067		$	1,096

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, 2016 the Company had a nominal amount of accrued interest related to uncertain tax positions. As of December 31, 2015, the Company had approximately $0.1 million of accrued interest related to uncertain tax positions.

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, 2016, U.S. tax returns for the years 2012 through 2015 remain subject to examination by federal tax authorities. Tax returns for the years 2011 through 2015 remain subject to examination by state and local tax authorities for a majority of the Company's state and local filings.