15.Income Taxes

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


	Year Ended December 31,
(in thousands)	2015		2014		2013
Current - State	$	522	$	426	$	764
Deferred		234		(13,491)		(930)
	$	756	$	(13,065)	$	(166)

Reconciliations between the Company’s effective income tax rate and the U.S. statutory rate are as follow:


	Year Ended December 31,
	2015		2014		2013
Statutory U.S. Federal income tax rate	(35.0)	%	(35.0)	%	(35.0)	%
State income taxes, net of U.S. Federal income tax	(2.2)		(3.4)		(2.8)
Valuation allowance	16.8		21.5		38.1
Permanent items	5.1		0.5		1.2
Deferred item adjustments	18.0		—		(1.9)
Effective income tax rate	2.7	%	(16.4)	%	(0.4)	%

The components of the Company’s overall deferred tax assets and liabilities at December 31 are as follows:


(in thousands)	2015		2014
Deferred tax assets
Accounts receivable	$	588	$	798
Accrued compensation and pension		6,797		8,045
Inventories		796		1,146
Other assets		2,014		1,315
Unrealized loss on pension		4,160		4,512
Net operating loss carryforwards		83,338		85,694
Deferred tax assets		97,693		101,510
Valuation allowance		(59,715)		(55,037)
Total deferred tax assets		37,978		46,473
Deferred tax liabilities
Accelerated depreciation and amortization		(90,191)		(97,958)
Prepaid assets		(746)		(1,240)
Total deferred tax liabilities		(90,937)		(99,198)
Net deferred tax liabilities	$	(52,959)	$	(52,725)

At December 31, 2015, the Company had available unused federal net operating loss carryforwards of approximately $214.9 million. The net operating loss carryforwards will expire at various dates from 2018 through 2036.

In assessing the need for a valuation allowance, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We evaluate our ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding our forecasted taxable income, the reversal of existing deferred tax liabilities, taxable income in prior carry-back years (if permitted) and the availability of tax planning strategies. Based on the expected reversal of the existing deferred tax assets and liabilities at December 31, 2015, we believe that a portion of the deferred tax assets will not be realized. As such, we have recorded a valuation allowance of $59.7 million primarily related to federal and state net operating losses that are not expected to be realized prior to their expiration. The valuation allowance increased in 2015 due to results of operations.

Under the Code, certain corporate stock transactions into which the Company has entered or may enter in the future could limit the amount of net operating loss carryforwards which may be utilized on an annual basis to offset taxable income in future periods.

ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Our evaluation was performed for the tax years ended December 31, 2015, 2014 and 2013, which are the tax years that remain subject to examination by major tax jurisdictions as of December 31, 2015.

A reconciliation of the beginning and ending amount of unrecognized tax benefit for the years ended December 31, 2015, 2014 and 2013


(in thousands)
Unrecognized tax benefits balance at January 1, 2013	$	3,798
Gross decreases for tax positions in 2013		(1,726)
Unrecognized tax benefits balance at December 31, 2013		2,072
Gross decreases for tax positions in 2014		—
Unrecognized tax benefits balance at December 31, 2014		2,072
Gross decreases for tax positions in 2015		—
Unrecognized tax benefits balance at December 31, 2015	$	2,072

Included in the unrecognized tax benefits as of December 31, 2015 are $2.1 million of tax benefits that, if recognized, would decrease the effective tax rate. The decrease in 2013 was related to the expiration of applicable statute of limitations which was offset by an increase to the valuation allowance.