NOTE 14 - INCOME TAXES

The following table details the components of the Company's provision (benefit) for income taxes from continuing operations (in thousands):



	Years Ended December 31,
	2015			2014			2013
Current tax provision (benefit):
Federal	$	146		$	(170	)	$	746
State	1,655			592			1,042
Foreign	74			43			(156		)
Total current tax provision (benefit)	1,875			465			1,632
Deferred tax provision (benefit)
Federal	4,386			5,039			1,399
State	(404		)	349			(1,374		)
Foreign	—			—			—
Total deferred tax provision (benefit)	3,982			5,388			25
Total income tax provision (benefit)	$	5,857		$	5,853		$	1,657

A reconciliation between the federal statutory income tax rate and the Company's effective income tax rate, is as follows:



	Years Ended December 31,
	2015		2014		2013
Statutory tax rate	35	%	35	%	35	%
State and local taxes, net of federal benefit	4		5		(10	)
Non-controlling interests	(5	)	—		—
Foreign adjustment	—		—		(2	)
Excess officers' compensation	5		—		—
Equity-based compensation (benefit) expense	3		(1	)	1
Dividend received deduction	(1	)	(2	)	(2	)
Other items	1		2		(5	)
	42	%	39	%	17	%

Deferred tax assets (liabilities) are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated balance sheets. These temporary differences will result in taxable or deductible amounts in future years. The components of deferred tax assets, net, are as follows (in thousands):



	December 31,
	2015			2014
Deferred tax assets related to:
Federal, foreign, state and local operating loss carryforwards	$	10,147		$	10,401
Capital loss carryforwards	2,367			1,192
Unrealized loss on investments	14,675			13,455
Investment in partnerships	4,712			2,201
Provision for credit losses	216			7,354
Accrued expenses	2,337			1,794
Employee equity compensation awards	1,711			1,864
Deferred income	10			40
Property and equipment basis differences	16			—
Gross deferred tax assets	36,191			38,301
Less: valuation allowance	(6,565		)	(4,906		)
	29,626			33,395
Deferred tax liabilities related to:
Intangible assets	(362		)	(392		)
Unremitted foreign earnings	—			(76		)
Property and equipment basis differences	—			(109		)
	(362		)	(577		)

Deferred tax assets, net	$	29,264		$	32,818

As a result of certain realization requirements, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2015 and 2014 that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Equity will be increased by $1.8 million if and when such deferred tax assets are ultimately realized. The Company uses a "with and without approach" when determining when excess tax benefits have been realized.

Taxes have not been provided on the cumulative undistributed earnings of the Company's foreign subsidiary, which are deemed permanently reinvested.

At December 31, 2015, the Company had total state/local net operating tax loss carryforwards ("NOLs") of $195.9 million (deferred tax asset of $10.1 million), that will expire between 2016 and 2035. The Company believes it will be able to utilize up to $93.1 million of these NOLs (deferred tax asset of $5.3 million) prior to their expiration and has changed its valuation allowance against gross NOLs from $74.9 million to $102.8 million (tax effected expense of $1.5 million). In addition, the Company changed its valuation allowance against gross state timing differences from $1.3 million to $1.6 million (tax effected expense of $141,000) that the Company believes it will not be able to use. Management will continue to assess its estimate of the amount of NOLs that the Company will be able to utilize. Furthermore, its estimate of the required valuation allowance could be adjusted in the future if projections of taxable income are revised. Management believes it is more likely than not that the other net deferred tax assets will be realized based on carryback of capital losses and tax planning strategies that will generate future taxable income during the periods in which these temporary differences become deductible.

The Company is subject to examination by the U.S. Internal Revenue Service (“IRS”) and by the taxing authorities in states in which the Company has significant business operations, such as Pennsylvania and New York. The Company is currently undergoing a Kansas income tax examination for tax years 2011 through 2013 and a Philadelphia income tax examination for tax years 2011 through 2013. The Company is not subject to IRS examination for tax return years before 2011 and is not subject to state and local income tax examinations for the tax return years before 2008.