

12.	Income Taxes

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



	For the Years Ended December 31,
	2015			2014			2013
Federal:
Current	$	59,792		$	61,688		$	54,915
Deferred	48,962			8,394			16,150
	108,754			70,082			71,065
State:
Current	13,584			12,965			11,156
Deferred	9,184			1,013			3,017
	22,768			13,978			14,173
Foreign:
Current	5,445			3,372			3,318
Deferred	(1,424		)	(554		)	(1,103		)
	4,021			2,818			2,215
	$	135,543		$	86,878		$	87,453



12.	Income Taxes, continued

The net deferred income tax assets (liabilities) at December 31, 2015 and 2014 are comprised of the following (in thousands):



	December 31,
	2015			2014
Accounts receivable	$	8,754		$	7,977
State taxes	5,482			2,632
Other liabilities and reserves	24,947			21,878
Other assets	34,731			33,606
Inventory	1,360			1,271
Net operating loss carryforwards	26,256			27,610
Share-based compensation	5,415			6,615
Intangible assets	(201,350		)	(138,214		)
Property and equipment	(24,419		)	(22,753		)
Unrealized loss on investments	—			(3		)
Valuation allowance	(12,654		)	(13,790		)
Total non-current deferred income tax liabilities	$	(131,478	)	$	(73,171	)

At December 31, 2015, we had Federal net operating loss (“NOL”) carryforwards of approximately $61.9 million, comprised mainly of acquired NOL carryforwards. These NOLs expire at various dates through 2035. 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.

On November 20, 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. We elected to retrospectively adopt the accounting standard in the fourth quarter of 2015. As a result, total deferred tax assets of $30.3 million were reclassified to partially offset and be presented in a single non-current deferred income tax liability amount.

Taxes on Foreign Income

As of December 31, 2015, unremitted earnings of subsidiaries outside of the United States were approximately $50.4 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. The amount of unrecognized deferred taxes totaled $7.6 million with respect to these unremitted earnings.

Our effective tax rate was 39.1%, 39.1% and 38.9% in 2015, 2014 and 2013, respectively.



12.	Income Taxes, continued

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,
	2015		2014		2013
Federal income tax at statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of Federal benefit	4.3		4.1		4.2
Goodwill impairment	0.3		0.2		—
Foreign rate differential	(0.4	)	(0.4	)	(0.4	)
Miscellaneous	(0.1	)	0.2		0.1
	39.1	%	39.1	%	38.9	%

We are regularly audited by federal and state tax authorities. The statute is generally open for four years for state audits.