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Income Taxes
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
All Company operations are domestic. The provision for income taxes consisted of the following (in thousands):
 
 
Year ended December 31,
 
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
 
  Federal
 
$
37,751

 
$
24,990

 
$
13,266

  State
 
3,452

 
2,419

 
1,606

Current tax provision
 
41,203

 
27,409

 
14,872

Deferred:
 
 
 
 
 
 
  Federal
 
(2,451
)
 
33

 

  State
 
(111
)
 
8

 
(4
)
Deferred tax provision (benefit)
 
(2,562
)
 
41

 
(4
)
Total income tax provision
 
$
38,641

 
$
27,450

 
$
14,868


 Income taxes paid were $42.4 million, $23.7 million and $15.2 million for the years ended December 31, 2016, 2015, and 2014, respectively.
A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 35% to income before provision for income taxes for the years ended December 31, 2016, 2015 and 2014 (in thousands):
 
 
Year Ended December 31,
 
 
2016
 
2015
2014
Tax at federal statutory rate
 
$
39,791

 
35.0
 %
 
$
28,098

 
35.0
 %
 
$
15,078

 
35.0
 %
State income taxes (net of federal benefit)
 
2,143

 
1.9

 
1,568

 
2.0

 
1,037

 
2.4

Domestic production activity deduction
 
(3,727
)
 
(3.3
)
 
(2,462
)
 
(3.1
)
 
(1,294
)
 
(3.0
)
Non deductible expenses and other
 
435

 
0.4

 
237

 
0.3

 
47

 
0.1

Change in tax status of entity - deferred taxes
 
(1
)
 

 
9

 

 

 

Tax at effective rate
 
$
38,641

 
34.0
 %
 
$
27,450

 
34.2
 %
 
$
14,868

 
34.5
 %

The components of net deferred tax assets and liabilities at December 31, 2016 and 2015, are as follows (in thousands):
 
 
December 31
 
 
2016
 
2015
Deferred tax assets:
 
 
 
 
   Accruals and reserves
 
$
2,422

 
$
1,741

   Inventory
 
532

 
536

   Stock-based compensation
 
392

 
176

   Deferred loan costs
 
62

 
84

   Deferred rent
 
43

 
44

Total deferred tax assets
 
3,451

 
2,581

Deferred tax liabilities:
 
 
 
 
   Discount on Convertible Notes
 
(1,897
)
 
(2,486
)
   Prepaids
 
(911
)
 
(2,078
)
   Tax depreciation in excess of book depreciation
 
(396
)
 
(441
)
   Goodwill and other assets amortized for tax
 
(411
)
 
(302
)
Total deferred tax liability
 
$
(3,615
)
 
$
(5,307
)
Total net deferred tax liability
 
$
(164
)
 
$
(2,726
)

The Company has not recorded any accruals related to uncertain tax positions as of December 31, 2016 and 2015, respectively. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The statute of limitations with regards to our federal income tax filings is three years. The statute of limitations for our state tax jurisdictions is three to four years depending on the jurisdiction.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.