Income Taxes

The provision (benefit) for income taxes consists of the following:



	Years Ending December 31,
	2017			2016		2015
	(in thousands)
Current	$	21,548		$	25,790	$	24,439
Deferred	(1,554		)	825		1,172
Total	$	19,994		$	26,615	$	25,611

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before the provision for income taxes.

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



	Years Ending December 31,
	2017		2016		2015

Federal statutory rate	35	%	35	%	35	%
State income taxes, net of federal benefit	5	%	5	%	5	%
Remeasurement of deferred taxes	(6	)%	—	%	—	%
Domestic manufacturing deduction	(3	)%	(3	)%	(3	)%
Excess tax benefits	(3	)%	(3	)%	—	%
Other	(1	)%	(1	)%	(1	)%
	27	%	33	%	36	%

The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. Major changes under the Act include the following:


•	Reducing the corporate rate to 21 percent


•	Doubling bonus depreciation to 100 percent for five years


•	Further limitations on executive compensation deductions


•	Eliminating the domestic manufacturing deduction

As a result of these changes, the Company adjusted its deferred tax assets and liabilities existing at the date of enactment using the newly enacted rates for the periods when they are expected to be realized. This remeasurement resulted in a benefit to income taxes of $4.4 million. The new bonus depreciation provisions resulted in the Company taking $3.2 million of bonus depreciation in the fourth quarter of 2017. The Company sometimes has executive compensation that exceeds the $1.0 million limitation. Typically the limit is exceeded due to the volume of stock activity performed by the executive during the year. The Company cannot predict the performance of its stock or when executives may choose to initiate stock activity. As such, the Company is unable to quantify any impact of this tax law change but any compensation that does exceed this limitation in the future will be a permanent difference and cause an increase to our income tax provision. The Company also has historically taken the domestic manufacturing deduction. The Company will no longer receive the benefit of this deduction which typically has lowered our effective tax rate by 3.0% to 4.0%.

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 amount used for income tax purposes.

The significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2017			2016
	(in thousands)
Deferred income tax assets (liabilities):
Accounts receivable and inventory reserves	$	318		$	587
Warranty accrual	2,698			3,165
Other accruals	1,395			1,715
Share-based compensation	1,432			1,784
Donations	152			463
Other, net	698			738
Total deferred income tax assets	6,693			8,452
Property & equipment	(14,670		)	(17,983		)
Total deferred income tax liabilities	$	(14,670	)	$	(17,983	)
Net deferred income tax liabilities	$	(7,977	)	$	(9,531	)

We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. examinations for tax years 2013 to present, and to non-U.S. income tax examinations for the tax years of 2013 to present. In addition, we are subject to state and local income tax examinations for tax years 2013 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.