Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income from Continuing Operations Before Income Taxes

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

	2016		2015		2014
United States	$	66,848	$	57,665	$	50,385
Foreign (Canada)		158		167		183
Total	$	67,006	$	57,832	$	50,568

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, 2016, 2015 and 2014 was as follows (in thousands):

	2016			2015			2014
Continuing operations :
Current:
Federal	$	18,816		$	18,079		$	15,749
Foreign		42			43			47
State and local		2,681			2,694			1,782
Total		21,539			20,816			17,578
Deferred:
Federal		4,148			1,060			952
State and local		712			953			1,624
Total		4,860			2,013			2,576
Total income tax expense from continuing operations		26,399			22,829			20,154
Discontinued operations :
Operations of discontinued operations:
Current		(365	)		(1,263	)		51
Deferred		(10	)		68			(222	)
Total		(375	)		(1,195	)		(171	)
Gain on disposal of discontinued operations:
Current		—			427			34
Deferred		—			(344	)		—
Total		—			83			34
Total income tax expense from discontinued operations		(375	)		(1,112	)		(137	)
Total income tax expense	$	26,024		$	21,717		$	20,017

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):

	2016			2015			2014
Tax at statutory rate (35%)	$	23,452		$	20,241		$	17,699
State taxes (net of federal benefit)		2,643			2,899			3,361
Business meals and entertainment — non-deductible		784			779			667
Reserves for uncertain tax positions		(87	)		(324	)		(1,724	)
Net change in tax rate		(64	)		(1,046	)		(214	)
Other, net		(329	)		280			365
Provision for income taxes from continuing operations	$	26,399		$	22,829		$	20,154
Effective income tax rate		39.4	%		39.5	%		39.9	%

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, 2016 and 2015, were as follows (in thousands):

	2016			2015
Deferred tax assets:
Net operating loss carryforwards .	$	884		$	952
Allowance for doubtful accounts		4,486			4,569
Employee benefits and compensation		29,166			27,984
Lease costs		2,772			3,318
State tax credit carryforwards		1,489			1,393
Other deferred tax assets		2,951			2,497
Total gross deferred tax assets		41,748			40,713
Less: valuation allowance		(1,314	)		(1,376	)
Total deferred tax assets, net	$	40,434		$	39,337
Deferred tax liabilities:
Accrued interest	$	2,494		$	3,847
Client list intangible assets		2,717			3,273
Goodwill and other intangibles		38,646			32,114
Other deferred tax liabilities		122			209
Total gross deferred tax liabilities	$	43,979		$	39,443
Net deferred tax (liability) asset	$	(3,545	)	$	(106	)

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):

	2016			2015			2014
Balance at January 1	$	4,287		$	4,591		$	5,508
Additions for tax positions of the current year		110			126			1,107
Additions for tax positions of prior years		—			—			118
Settlements of prior year positions		(11	)		(94	)		(1,343	)
Lapse of statutes of limitation		(296	)		(336	)		(799	)
Balance at December 31	$	4,090		$	4,287		$	4,591