Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
(In thousands)	2016			2015			2014
Current:
Federal	$	1,488		$	9,189		$	(31,111	)
State	(364		)	3,794			4,618
Foreign	150			378			230
	1,274			13,361			(26,263		)
Deferred:
Federal	38,028			11,528			38,297
State	4,278			320			2,951
Foreign	(6		)	(24		)	—
Revaluation due to state legislative changes	(528		)	3,130			2,594
	41,772			14,954			43,842
Total	$	43,046		$	28,315		$	17,579

U.S. Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate

The U.S. federal statutory income tax rate reconciled to our effective tax rate is as follows:

	Year Ended December 31,
	2016							2015							2014
(In thousands, except percent)	Pre-Tax Income		Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)		Pre-Tax Income		Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)		Pre-Tax Income		Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)
	$	104,452						$	60,010						$	33,076
U.S. federal statutory tax rate			$	36,558		35.0	%			$	21,004		35.0	%			$	11,577		35.0	%
State income taxes, net of federal benefit			4,484			4.2				3,961			6.6				1,257			3.8
Tax rate change			(528		)	(0.5	)			3,130			5.2				2,594			7.8
Nondeductible transaction costs			—			—				—			—				305			0.9
Nondeductible meals, entertainment and penalties			4,129			4.0				1,970			3.3				1,412			4.3
Stock-based compensation			634			0.6				816			1.3				1,478			4.5
Uncertain tax positions			23			—				98			0.2				268			0.8
Tax credits			(1,228		)	(1.2	)			(1,340		)	(2.2	)			(1,202		)	(3.6	)
Net Operating Loss adjustment			—			—				(932		)	(1.5	)			—			—
State tax return to provision adjustment			(1,267		)	(1.2	)			—			—				—			—
Other			241			0.3				(392		)	(0.7	)			(110		)	(0.3	)
Total			$	43,046		41.2	%			$	28,315		47.2	%			$	17,579		53.2	%

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows:

	Year Ended December 31,
(In thousands)	2016			2015
Deferred tax assets:
Net operating losses (federal and state)	$	4,397		$	2,508
Accrued expenses	10,239			9,908
Accrued workers' compensation costs	13,266			18,823
Stock-based compensation	5,350			4,643
Tax benefits relating to uncertain positions	37			29
Tax credits (federal and state)	6,344			6,272
Other	(47		)	113
Total	39,586			42,296
Valuation allowance	(5,689		)	(5,276		)
Total deferred tax assets	33,897			37,020
Deferred tax liabilities:
Depreciation and amortization	(8,055		)	(3,277		)
Deferred service revenues	(114,646		)	(85,263		)
Prepaid health plan expenses	(3,569		)	(3,121		)
Total deferred tax liabilities	(126,270		)	(91,661		)
Net non-current deferred tax liabilities	$	(92,373	)	$	(54,641	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows:

	Year Ended December 31,
(In thousands)	2016			2015			2014
Unrecognized tax benefits at January 1	$	2,618		$	2,471		$	2,300
Additions for tax positions of prior periods	—			—			25
Additions for tax positions of current period	132			167			182
Reductions for tax positions of prior period:
Settlements with taxing authorities	(1,855		)	—			—
Lapse of applicable statute of limitations	(130		)	—			—
Adjustments to tax positions	(15		)	(20		)	(36		)
Unrecognized tax benefits at December 31	$	750		$	2,618		$	2,471