Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5.

Income Taxes

The components of the provision for income taxes consisted of the following:

(In thousands)	201 6		2015		2014
Current:
Federal	$	8,987	$	9,280	$	10,402
State		1,125		946		2,015
		10,112		10,226		12,417
Deferred:
Federal		12,427		13,042		8,648
State		1,063		1,678		774
		13,490		14,720		9,422
Total provision	$	23,602	$	24,946	$	21,839

The statutory federal income tax rate is reconciled to the effective income tax rate as follows:

	201 6			2015			2014
Statutory federal income tax rate		35	%		35	%		35	%
Per diem and other non-deductible expenses		4			3			4
Increase in taxes arising from state income taxes, net of federal income tax benefit		2			3			3
Effective tax rate		41	%		41	%		42	%

As of

December

31,

the net deferred tax liability consisted of the following:

(In thousands)	201 6		2015
Deferred tax assets:
Reserves and accrued liabilities	$	8,490	$	7,219
Other		2,757		2,721
		11,247		9,940
Deferred tax liabilities:
Depreciation		155,936		141,255
Prepaid expenses		3,165		3,049
		159,101		144,304
Net deferred tax liability	$	147,854	$	134,364

We have not provided a valuation allowance against deferred tax assets at

December

31,

2016

or

2015.

We believe the deferred tax assets will be realized principally through future reversals of existing taxable temporary differences (deferred tax liabilities) and future taxable income.

Our reserves for unrecognized tax benefits were

$536,000

as of

December

31,

2016

and

$683,000

as of

December

31,

2015.

The

$147,000

decrease in the amount reserved in

2016

relates to current period tax positions offset by the removal of the reserve relating to

2011

tax positions. The amount reserved as of

December

 

31,

2015

was added in

2011

through

2015

relating to current period tax positions. If recognized,

$349,000

of the unrecognized tax benefits as of

December

31,

2016

would impact our effective tax rate. Potential interest and penalties related to unrecognized tax benefits of

$59,000

and

$91,000

were recognized in our financial statements as of

December

 

31,

2016

and

2015,

respectively. We do not expect the reserves for unrecognized tax benefits to change significantly within the next

twelve

months. The federal statute of limitations remains open for

2013

and forward. We file tax returns in numerous state jurisdictions with varying statutes of limitations.