INCOME TAXES

At December 31, 2016, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $40.2 million, which begin to expire in 2031 if not utilized before then. The deferred tax asset balance includes $1.8 million net of a $0.2 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one to twenty years. These NOL CFs are attributable to excess tax deductions related primarily to the accelerated tax depreciation of fixed assets. At December 31, 2016 and 2015, the Company determined that, based upon projections of taxable income, it was more likely than not that the NOL CF’s will be realized prior to their expiration, accordingly, no allowance against these deferred tax assets was recorded.

The significant components of the deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):



	December 31
	2016			2015
Deferred tax assets:
Net operating loss carryforward and federal credits	$	20,596		$	30,981
Warrants	4,746			—
Post-retirement employee benefits	27,060			36,589
Employee benefits other than post-retirement	13,785			13,773
Inventory reserve	2,727			2,924
Deferred revenue	7,728			8,650
Other	4,411			2,344
Deferred tax assets	81,053			95,261
Deferred tax liabilities:
Accelerated depreciation	(186,015		)	(175,572		)
Partnership items	(8,777		)	(9,489		)
State taxes	(8,564		)	(6,830		)
Valuation allowance against deferred tax assets	(229		)	(229		)
Deferred tax liabilities	(203,585		)	(192,120		)
Net deferred tax (liability)	$	(122,532	)	$	(96,859	)

The following summarizes the Company’s income tax provisions (benefits) (in thousands):



	Years Ended December 31
	2016		2015		2014
Current taxes:
Federal	$	820	$	524	$	338
Foreign	—		—		—
State	151		371		345
Deferred taxes:
Federal	11,338		21,073		17,411
Foreign	—		—		—
State	1,085		1,440		1,608
Total deferred tax expense	12,423		22,513		19,019
Total income tax expense from continuing operations	$	13,394	$	23,408	$	19,702
Income tax expense (benefit) from discontinued operations	$	1,384	$	1,178	$	(1,262	)

The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:



	Years Ended December 31
	2016		2015		2014
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	2.3	%	1.9	%	2.5	%
Tax effect of non-deductible warrant expense	4.0	%	—	%	—	%
Tax effect of stock compensation	(3.4	)%	—	%	—	%
Tax effect of other non-deductible expenses	1.6	%	0.9	%	0.8	%
Other	(0.6	)%	(0.4	)%	(0.2	)%
Effective income tax rate	38.9	%	37.4	%	38.1	%

The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:



	Years Ended December 31
	2016		2015		2014
Statutory federal tax rate	35.0	%	35.0	%	(35.0	)%
State income taxes, net of federal tax benefit	1.3	%	1.3	%	(1.3	)%
Effective income tax rate	36.3	%	36.3	%	(36.3	)%

The Company files income tax returns in the U.S. federal jurisdiction and various international, state and local jurisdictions. The returns may be subject to audit by the Internal Revenue Service (“IRS”) and other jurisdictional authorities. International returns consist primarily of disclosure returns where the Company is covered by the sourcing rules of U.S. international treaties. The Company recognizes the impact of an uncertain income tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. At December 31, 2016, 2015 and 2014, the Company's unrecognized tax benefits were $0.0 million, $0.0 million and $0.0 million respectively. Accrued interest and penalties on tax positions are recorded as a component of interest expense. Interest and penalties expense was immaterial for 2016, 2015 and 2014.

The Company began to file, effective in 2008, federal tax returns under a common parent of the consolidated group that includes ABX and all the wholly-owned subsidiaries, except for Pemco which was acquired on December 30, 2016. The returns for 2015, 2014 and 2013 related to the consolidated group remain open to examination. The consolidated federal tax returns prior to 2013 remain open to federal examination only to the extent of net operating loss carryforwards carried over from or utilized in those years. Pemco filed returns on its own behalf prior to its acquisition by the Company. State and local returns filed for 2005 through 2015 are generally also open to examination by their respective jurisdictions, either in full or limited to net operating losses.