10. Income Taxes

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

 

 

 

A reconciliation of income tax expense computed at the federal statutory rate to the provision for income taxes for the years ended December 31, 2015, 2014 and 2013 is as follows:

 

 

 

 

Significant components of the Company’s deferred tax liabilities and assets are as follows:

 

 

 

Deferred income tax balances reflect the effects of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

State operating loss carry forwards for tax purposes will result in future tax benefits of approximately $3,164. These loss carry-forwards will begin to expire in 2021. The Company evaluated the need to maintain a valuation allowance against certain deferred tax assets. Based on this evaluation, which included a review of recent profitability, future projections of profitability, and future deferred tax liabilities, the Company concluded that a valuation allowance of approximately $647 is necessary at December 31, 2015 for the state net operating loss carry-forwards which are likely to expire prior to the Company's ability to use the tax benefit. 

A reconciliation of the beginning and ending liability for uncertain tax positions is as follows:

 

 

 

The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $388 at December 31, 2015. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. Approximately $110 and $100 of accrued interest and penalties is reported as an income tax liability at December 31, 2015 and 2014, respectively. The liability for unrecognized tax benefits is reported in Other Long‑term Liabilities on the consolidated balance sheets at December 31, 2015 and 2014.

The Company files income tax returns in the United States (Federal), Wisconsin (state), Maine (state) and various other states. Tax years open to examination by tax authorities under the statute of limitations include 2014 for Federal and 2011 through 2014 for most states. Tax returns for the 2015 tax year have not yet been filed.