. Income Taxes

We recorded a

$56.5

million deferred income taxes benefit in

2017

to recognize the impact on our federal net deferred tax liability of the reduction of the federal corporate statutory income tax rate from

35%

21%

related to the Tax Cuts and Jobs Act of

2017,

which was enacted prior to

December 31, 2017.

Excluding that benefit, the

2017

federal deferred provision was

$8.0

million and the effective tax rate was

40.1%.

The Tax Cuts and Jobs Act of

2017

makes broad and complex changes to the U.S. tax code including, but

not

limited to, reducing the federal corporate income tax rate as noted above beginning on

January 1, 2018

and allowing bonus depreciation with full expensing of qualified property placed in service after

September 27, 2017.

The components of the income taxes expense (benefit) consisted of the following:

(In thousands)	201 8			2017			2016
Current:
Federal	$	7,575		$	12,427		$	8,987
State		3,076			990			1,125
Total current		10,651			13,417			10,112

Deferred:
Federal		5,815			(48,424	)		12,427
State		(464	)		1,196			1,063
Total deferred		5,351			(47,228	)		13,490
Total expense (benefit)	$	16,002		$	(33,811	)	$	23,602

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

	201 8			2017			2016
Federal statutory income tax rate		21	%		35	%		35	%
Per diem and other non-deductible expenses		2			4			4
Increase in taxes arising from state income taxes, net of federal income tax benefit		3			3			2
Federal tax credits		(2	)		(1	)		—
Decrease in federal deferred taxes due to decrease in statutory rate		—			(100	)		—
Other, net		(1	)		(1	)		—
Effective tax rate		23	%		(60	)%		41	%

As of

December 31,

the net deferred tax liability consisted of the following:

(In thousands)	201 8		2017
Deferred tax assets:
Reserves and accrued liabilities	$	7,986	$	7,277
Other		2,313		1,965
		10,299		9,242
Deferred tax liabilities:
Depreciation		113,773		107,453
Prepaid expenses		2,503		2,415
		116,276		109,868
Net deferred tax liability	$	105,977	$	100,626

We have

not

provided a valuation allowance against deferred tax assets at

December 31, 2018

2017.

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

$1.9

million as of

December 31, 2018

and

$407,000

as of

December 31, 2017.

The

$1.5

million increase in the amount reserved in

2018

relates to current period tax positions and an amendment to prior periods’ open returns for a current position less the removal of the reserve relating to

2013

tax positions, as that period has now closed. The amount reserved as of

December

31,

2017

was added in

2013

through

2017

relating to current period tax positions. If recognized,

$1.8

million of the unrecognized tax benefits as of

December 31, 2018

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

$12,000

and

$11,000

were recognized in our financial statements as of

December

31,

2018

and

2017,

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

2015

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