

12.	Income Taxes

The provision for income taxes is comprised of the following (in thousands):



	For the Years Ended December 31,
	2014			2013			2012
Federal:
Current	$	61,688		$	54,915		$	51,342
Deferred	8,394			16,150			(27,103		)
	70,082			71,065			24,239
State:
Current	12,965			11,156			9,896
Deferred	1,013			3,017			(5,081		)
	13,978			14,173			4,815
Foreign:
Current	3,372			3,318			4,035
Deferred	(554		)	(1,103		)	(1,214		)
	2,818			2,215			2,821
	$	86,878		$	87,453		$	31,875



12.	Income Taxes, continued

The net deferred income tax assets (liabilities) at December 31, 2014 and 2013 are comprised of the following (in thousands):



	December 31,
	2014			2013
Current deferred income tax assets:
Accounts receivable	$	7,977		$	6,598
State taxes	2,632			3,927
Other liabilities and reserves	21,878			14,298
Other assets	1,367			7,042
Inventory	1,271			1,547
Valuation allowance	(4,794		)	(4,394		)
Total current deferred income tax assets	$	30,331		$	29,018
Non-current deferred income tax (liabilities) assets:
Net operating loss carryforwards	$	27,610		$	28,111
Other assets	32,239			37,494
Intangible assets	(138,214		)	(128,584		)
Property and equipment	(22,753		)	(27,014		)
Unrealized loss on investments	(3		)	—
Share-based compensation	6,615			6,307
Valuation allowance	(8,996		)	(9,396		)
Total non-current deferred income tax (liabilities), net	$	(103,502	)	$	(93,082	)

At December 31, 2014, we had Federal net operating loss (“NOL”) carryforwards of approximately $64.8 million, comprised mainly of acquired NOL carryforwards. These NOLs expire at various dates through 2033. The utilization of NOL carryforwards to reduce taxable income is subject to certain statutory limitations. Events that cause such a limitation include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. We believe that some of our acquisitions caused such a change of ownership and, accordingly, utilization of the NOL carryforwards may be limited in future years. Accordingly, the valuation allowance is principally related to subsidiaries’ NOL carryforwards. We believe that it is more likely than not that the benefit from the remaining net deferred tax assets will be realizable.

Taxes on Foreign Income

As of December 31, 2014, unremitted earnings of subsidiaries outside of the United States were approximately $30.4 million on which no United States taxes had been provided. Our intention is to indefinitely reinvest these earnings outside the United States. Since these unremitted earnings have been permanently reinvested, deferred taxes were not provided on these unremitted earnings. Further, it is not practicable to determine the amount of unrecognized deferred taxes with respect to these unremitted earnings.

Our effective tax rate was 39.1%, 38.9% and 41.2% in 2014, 2013 and 2012, respectively.

A reconciliation of the provision for income taxes to the amount computed at the Federal statutory rate is as follows:



	For Years Ended December 31,
	2014		2013		2012
Federal income tax at statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal benefit	4.1		4.2		4.1
Goodwill impairment	0.2		—		4.6
AVC gain	—		—		(2.6	)
Foreign rate differential	(0.4	)	(0.4	)	(1.1	)
Miscellaneous	0.2		0.1		1.2
	39.1	%	38.9	%	41.2	%



12.	Income Taxes, continued

We are regularly audited by federal and state tax authorities. The statute is generally open for four years for state audits. We concluded an IRS audit for the 2011 taxable year with no additional assessment.