AMN 2017 Annual Report

51 The adoption of ASU 2016-09, “Stock Compensation - Improvements to Employee Share-Based Payment Accounting” in the first quarter of 2017, resulted in recording a $5,449 reduction in income tax expense for the year ended December 31, 2017. Prior to adoption, this amount would have been recorded as additional paid-in capital. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below as of the years ended December 31, 2017 and 2016: Years Ended December 31, 2017 2016 Deferred tax assets: Stock compensation $ 7,723 $ 11,954 Deferred compensation 12,949 13,079 Accrued expenses 11,343 35,499 Deferred rent 4,033 5,492 Net operating losses 2,650 5,756 Other 4,904 6,576 Total deferred tax assets $ 43,602 $ 78,356 Deferred tax liabilities: Intangibles $ (51,551) $ (78,201) Fixed assets (15,750) (18,847) Other (3,297) (2,545) Total deferred tax liabilities $ (70,598) $ (99,593) Valuation allowance $ (40) $ (183) Net deferred tax liabilities $ (27,036) $ (21,420) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management believes it is more likely than not that the Company will realize the benefits of its deferred tax assets, net of the recorded valuation allowance. The amount of federal net operating losses (“NOL”) carryforward that is available for use in years subsequent to December 31, 2017 is $11,250, which is set to expire by 2029. The amount of state NOL carryforward that is available for use in years subsequent to December 31, 2017 is $4,749, which is set to expire at various dates between 2018 and 2032. A summary of the changes in the amount of unrecognized tax benefits (excluding interest and penalties) for 2017, 2016 and 2015 is as follows: 2017 2016 2015 Beginning balance of unrecognized tax benefits $ 6,842 $ 6,537 $ 22,890 Additions based on tax positions related to the current year 513 — — Additions based on tax positions of prior years 731 868 395 Reductions due to lapse of applicable statute of limitation (949) (563) (214) Settlements (2,474) — (16,534) Ending balance of unrecognized tax benefits $ 4,663 $ 6,842 $ 6,537 At December 31, 2017, if recognized, approximately $4,613 would affect the effective tax rate (including interest). The Company recognizes interest related to unrecognized tax benefits in income tax expense. The Company had approximately $606, $1,622 and $1,544 of accrued interest related to unrecognized tax benefits at December 31, 2017, 2016 and 2015, respectively. The amount of interest expense (benefit) recognized in 2017, 2016 and 2015 was $(1,016), $78 and $(4,272), respectively. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. With few exceptions, as of December 31, 2017, the Company is no longer subject to state, local or foreign examinations by tax authorities for tax years before 2006, and the Company is no longer subject to U.S. federal income or payroll tax examinations for tax years before 2013. The Company’s tax years 2007, 2008, 2009 and 2010 had been under audit by the Internal Revenue Service (“IRS”) for