Income Taxes

Following is a summary of the provision for (benefit from) income taxes (in thousands):



Years Ended December 31,	2015		2014		2013
Federal:
Current	$	4,810	$	2,529	$	(1,298	)
Deferred	25,955		11,142		(18,606		)
Total federal	30,765		13,671		(19,904		)
State:
Current	1,914		1,897		1,592
Deferred	2,500		4,153		(951		)
Total state	4,414		6,050		641
Total provision for (benefit from) income taxes	$	35,179	$	19,721	$	(19,263	)

Following is a reconciliation of our provision for (benefit from) income taxes from the Federal statutory tax rate to our effective tax rate (dollars in thousands):



Years Ended December 31,	2015					2014					2013
Federal statutory tax	$	35,165		34.0	%	$	19,459		35.0	%	$	(22,411	)	35.0	%
State taxes, net of federal tax benefit	3,769			3.6		5,420			9.7		101			(0.2	)
Percentage depletion deduction	(1,444		)	(1.4	)	(1,217		)	(2.2	)	(787		)	1.2
Domestic production deduction	(306		)	(0.3	)	(2		)	—		(27		)	0.1
Non-controlling interests	(2,639		)	(2.6	)	(3,686		)	(6.6	)	2,920			(4.6	)
Nondeductible expenses	219			0.2		275			0.5		2,384			(3.7	)
Other	415			0.5		(528		)	(0.9	)	(1,443		)	2.3
Total	$	35,179		34.0	%	$	19,721		35.5	%	$	(19,263	)	30.1	%

Following is a summary of the deferred tax assets and liabilities (in thousands):



December 31,	2015			2014
Long-term deferred tax assets:
Receivables	$	332		$	306
Inventory	2,710			3,579
Insurance	10,427			11,534
Deferred compensation	11,139			12,479
Other accrued liabilities	3,405			4,801
Contract income recognition	—			5,592
Impairments on real estate investments	485			11,329
Accrued compensation	12,639			7,524
Other	2,925			2,107
Net operating loss carryforwards	648			8,665
Valuation allowance	(641		)	(1,185		)
Total long-term deferred tax assets	44,069			66,731
Long-term deferred tax liabilities:
Property and equipment	30,285			33,946
Contract income recognition	9,455			—
Total long-term deferred tax liabilities	39,740			33,946
Net long-term deferred tax assets	$	4,329		$	32,785

As of December 31, 2015, our deferred tax asset for net operating loss carryforwards relates to state and local net operating loss carryforwards which expire beginning in 2026. We have provided a valuation allowance on the net deferred tax assets for certain state and local jurisdictions because we do not believe it is more likely than not that they will be realized.

The following is a summary of the change in valuation allowance (in thousands):



December 31,	2015			2014			2013
Beginning balance	$	1,185		$	3,731		$	5,242
Deductions, net	(544		)	(2,546		)	(1,511		)
Ending balance	$	641		$	1,185		$	3,731

The deductions to the valuation allowance are related to the revaluation of our net deferred tax asset related to various state and local jurisdictions during the year ended December 31, 2015. Additions to the valuation allowance are immaterial for the year ended December 31, 2015.

Uncertain tax positions: We file income tax returns in the U.S. and various state and local jurisdictions. We are currently under examination by various state taxing authorities for various tax years. We do not anticipate that any of these audits will result in a material change in our financial position. We are no longer subject to U.S. federal examinations by tax authorities for years before 2011. With few exceptions, as of December 31, 2015, we are no longer subject to state examinations by taxing authorities for years before 2010.

We had approximately $1.6 million and $0.9 million of total gross unrecognized tax benefits as of December 31, 2015 and 2014, respectively. There were approximately $1.3 million and $0.5 million of unrecognized tax benefits that would affect the effective tax rate in any future period at December 31, 2015 and 2014, respectively. We do not anticipate a significant increase or decrease in our unrecognized tax benefits that will impact our effective tax rate in 2016.

The following is a tabular reconciliation of unrecognized tax benefits (in thousands), the balance of which is included in other long-term liabilities on the consolidated balance sheets:



December 31,	2015			2014			2013
Beginning balance	$	887		$	2,231		$	2,315
Gross increases – current period tax positions	1,006			—			363
Gross decreases – current period tax positions	(156		)	(282		)	(638		)
Gross increases – prior period tax positions	—			—			508
Gross decreases – prior period tax positions	—			(2		)	(2		)
Settlements with taxing authorities/lapse of statute of limitations	(159		)	(1,060		)	(315		)
Ending balance	$	1,578		$	887		$	2,231

We record interest on uncertain tax positions as interest expense in our consolidated statements of operations. During the years ended December 31, 2015, 2014 and 2013, we recognized approximately $0.1 million of interest income, $0.9 million of interest income and $0.1 million of interest expense, respectively. Approximately $0.1 million and $0.2 million of accrued interest were included in our uncertain tax position liability in our consolidated balance sheets at December 31, 2015 and 2014, respectively.