Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income from Continuing Operations Before Income Taxes

For financial reporting purposes, income from continuing operations before income taxes includes the following components (in thousands):


	2015		2014		2013
United States	$	57,665	$	50,385	$	41,809
Foreign (Canada)		167		183		147

Total	$	57,832	$	50,568	$	41,956

Income Tax Expense (Benefit) Included in Consolidated Statements of Comprehensive Income

Income tax expense included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):


	2015			2014			2013
Continuing operations:
Current:
Federal	$	18,079		$	15,749		$	13,880
Foreign		43			47			47
State and local		2,694			1,782			2,311

Total		20,816			17,578			16,238
Deferred:
Federal		1,060			952			(394	)
State and local		953			1,624			733

Total		2,013			2,576			339

Total income tax expense from continuing operations		22,829			20,154			16,577
Discontinued operations:
Operations of discontinued operations:
Current		(1,263	)		51			3,107
Deferred		68			(222	)		(653	)

Total		(1,195	)		(171	)		2,454
Gain on disposal of discontinued operations:
Current		427			34			49,973
Deferred		(344	)		—			(776	)

Total		83			34			49,197

Total income tax expense from discontinued operations		(1,112	)		(137	)		51,651

Total income tax expense	$	21,717		$	20,017		$	68,228

Provision for Income Taxes Attributable to Income from Continuing Operations

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):


	2015			2014			2013
Tax at statutory rate (35%)	$	20,241		$	17,699		$	14,684
State taxes (net of federal benefit)		2,899			3,361			2,020
Business meals and entertainment — non-deductible		779			667			624
Reserves for uncertain tax positions		(324	)		(1,724	)		(531	)
Net change in tax rate		(1,046	)		(214	)		(414	)
Other, net		280			365			194

Provision for income taxes from continuing operations	$	22,829		$	20,154		$	16,577

Effective income tax rate		39.5	%		39.9	%		39.5	%

Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014, were as follows (in thousands):


	2015			2014
Deferred tax assets:
Net operating loss carryforwards .	$	952		$	973
Allowance for doubtful accounts		4,569			3,028
Employee benefits and compensation		27,984			25,238
Lease costs		3,318			3,959
State tax credit carryforwards		1,393			1,496
Other deferred tax assets		2,497			3,175

Total gross deferred tax assets		40,713			37,869
Less: valuation allowance		(1,376	)		(1,079	)

Total deferred tax assets, net	$	39,337		$	36,790

Deferred tax liabilities:
Accrued interest	$	3,847		$	5,878
Client list intangible assets		3,273			4,016
Goodwill and other intangibles		32,114			25,874
Other deferred tax liabilities		209			248

Total gross deferred tax liabilities	$	39,443		$	36,016

Net deferred tax (liability) asset	$	(106	)	$	774

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2015			2014			2013
Balance at January 1	$	4,591		$	5,508		$	3,618
Additions for tax positions of the current year		126			1,107			2,647
Additions for tax positions of prior years		—			118			—
Settlements of prior year positions		(94	)		(1,343	)		—
Lapse of statutes of limitation		(336	)		(799	)		(757	)

Balance at December 31	$	4,287		$	4,591		$	5,508