Income Taxes

The components of the provision for income taxes are as follows:



	Year Ended December 31,
	2016			2015		2014
	(In Thousands)
Current:
U.S. federal	$	3,382		$	3,351	$	3,826
Foreign	(18		)	53		525
State and local	639			720		137
Total current	4,003			4,124		4,488
Deferred:
U.S. federal	1,694			3,299		1,012
Foreign	(71		)	—		—
State and local	(62		)	846		963
Total deferred	1,561			4,145		1,975
Provision for income taxes	$	5,564		$	8,269	$	6,463

The reconciliation of income tax expense computed at the U.S. federal statutory rate to the income tax provision for the years ended December 31, 2016, 2015 and 2014 is as follows:



	Year Ended December 31,
	2016			2015			2014
	(In Thousands)
Income taxes at federal statutory rate	$	6,190		$	4,806		$	2,424
State income taxes, net of federal benefit	425			1,078			833
Sale of Ijie operations	—			—			1,404
Foreign taxes	(45		)	(65		)	714
Subpart F income	—			—			570
Income tax reserve and other assessments	(1,281		)	286			266
Nondeductible expenses	264			236			252
Provision for foreign unremitted earnings	103			46			221
Domestic production activities deduction	—			—			(236		)
Valuation allowance	115			2,190			—
Other	(207		)	(308		)	15
Provision for income taxes	$	5,564		$	8,269		$	6,463

The decrease in the Company’s effective tax rate in the current year was primarily due to the income tax benefit recognized from the resolution of an uncertain tax position.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities consist of the following:



	Year Ended December 31,
	2016			2015
	(In Thousands)
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	10,367		$	11,825
Allowance for doubtful accounts and other reserves	2,218			2,070
Deferred rent	1,726			2,085
Stock-based compensation	2,112			1,721
Equity method investments	2,529			2,525
Other	84			189
Valuation allowance	(2,734		)	(2,610		)
Total deferred tax assets	$	16,302		$	17,805
Deferred tax liabilities:
Unremitted earnings	$	(371	)	$	(267	)
Intangible assets	(1,855		)	(1,746		)
Property and equipment	(1,518		)	(1,840		)
Capitalized software costs	(2,640		)	(2,374		)
Total deferred tax liabilities	(6,384		)	(6,227		)
Total net deferred tax assets	$	9,918		$	11,578

As of December 31, 2016, the Company had net operating loss carryforwards of approximately $27.1 million for federal tax purposes, which are set to expire in years 2019 through 2026. The majority of this amount represents acquired tax loss carryforwards of WeddingChannel.com, which are subject to limitation on future utilization under Section 382 of the Internal Revenue Code of 1986. Section 382 imposes limitations on the availability of a company’s net operating losses after a more than 50 percentage point ownership change occurs over a 3 year period. It is estimated that the effect of Section 382 will generally limit the amount of the net operating loss carryforwards of WeddingChannel.com that is available to offset future taxable income to approximately $3.6 million annually. The overall determination of the annual loss limitation is subject to interpretation, and, therefore, the annual loss limitation could be subject to change.

The following is a reconciliation of the Company’s unrecognized tax benefits for 2016 and 2015:



	2016			2015
	(In Thousands)
Balances of unrecognized tax benefits as of January 1	$	3,630		$	2,176
(Decreases) increases for positions taken in prior years	(1,330		)	1,686
Increases for positions related to the current year	69			—
Expiration of the statute of limitations	(264		)	(232		)
Balance of unrecognized tax benefits as of December 31	$	2,105		$	3,630

Of the total $2.1 million, approximately $1.2 million is presented within other long-term liabilities on the Consolidated Balance Sheets. These unrecognized tax benefits would affect the Company's effective income tax rate, if and when recognized in future years. The remainder of the unrecognized tax benefits has been netted against the related deferred and current tax assets and, if recognized, would also be reported as a reduction of income tax expense. The Company does not presently anticipate such uncertain tax positions will significantly increase or decrease in the next twelve months; however, actual developments could differ from those currently expected.

The Company is subject to income tax in the United States and various foreign state and local jurisdictions. The Company is subject to U.S. federal, state and local income tax examination for tax years 2013, 2014 and 2015; however, net operating losses utilized by the Company that were generated in prior years are subject to review.

The Company records interest and penalties as a component of income tax expense. For the years ended December 31, 2015 and 2014, the total interest and penalties included in the Company's tax provision was $50 thousand and $0.2 million, respectively. The total interest and penalties included in the Company's tax provision for the year ended December 31, 2016 was immaterial. As of December 31, 2016 and 2015, the Company had $0.2 million of accrued interest and penalties related to accrued income taxes.

Following the sale of the Company’s Ijie operations, the Company determined that it will no longer permanently reinvest its foreign earnings and as a result the Company has recorded a deferred tax liability in the amount of $0.4 million and $0.3 million as of December 31, 2016 and 2015, respectfully.