The provision (benefit) for income taxes consisted of the following (in thousands):

On December 22, 2017, the Tax Cuts and Job Act (“the Act”) legislation was enacted, which significantly changed the U.S. corporate income tax laws by, among other items, reducing the U.S. corporate income tax rate to 21% from 35% starting in 2018, further limiting 162(m) deductions and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of U.S. subsidiaries. As a result of the Act, the Company revalued its deferred taxes, net due to the changes in the U.S. corporate statutory federal income tax rate and recorded a net charge of $11.6 million in the provision for income taxes during the fourth quarter of 2017. Although the Company’s accounting for certain income tax effects of the Act is incomplete, it was determined that the $11.6 million charge is a reasonable estimate of those effects. When the IRS issues additional guidance and regulations enabling the Company to finalize certain tax positions, the Company will be able to conclude whether any further adjustments are required to be made to its deferred tax asset, net balance as of December 31, 2017. Any adjustments to this provisional amount will be reported no later than the fourth quarter of 2018, as a component of the provision for income taxes in the reporting period in which any such adjustments are determined.

Significant components of the Company’s deferred tax assets, net consisted of the following (in thousands):

As of December 31, 2017, and 2016, the Company had state and Canadian net operating and capital losses (“NOLs”) of approximately $7.8 million and $6.4 million, respectively, which will begin to expire in 2019. Certain limitations may be placed on NOLs as a result of “changes in control” as defined in Section 382 of the Internal Revenue Code. In the event a change in control occurs, it will have the effect of limiting the annual usage of the carryforwards in future years. Additional changes in control in future periods could result in further limitations of the Company’s ability to offset taxable income. In addition, the utilization of these NOLs may be subject to certain limitations under state and foreign laws.

A valuation allowance is required when it is more-likely-than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax asset is dependent upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies and reversals of existing taxable temporary differences. Management determined that as of December 31, 2017 and 2016, $1.9 million and $1.7 million, respectively, of the deferred tax assets related to state and Canadian losses do not satisfy the recognition criteria and therefore have recorded a valuation allowance for this amount. The valuation allowance for deferred tax assets was increased by $170,000, $412,000 and $583,000 during 2017, 2016 and 2015, respectively. The increases are primarily related to the Company’s Canadian operations.

The provision for income taxes differs from the amount computed by applying the statutory federal corporate income tax rate of 35% to income before provision for income taxes and consisted of the following (in thousands):

During the year ended December 31, 2016, the Company recorded $2.7 million as a credit to additional paid-in capital in the accompanying consolidated balance sheets, in connection with windfall tax benefits, net associated with the settlement of DSUs/RSUs/RSAs. Effective January 1, 2017, as a result of the adoption of ASU 2016-09,any windfall tax benefits, net are recorded in the Company’s provision for income taxes in the consolidated statements of net and comprehensive income.

As of December 31, 2017 and 2016, the Company has no liabilities for unrecognized tax benefits or any related interest or penalties.

The Company is subject to tax in various jurisdictions and, as a matter or ordinary course, the Company is subject to income tax examinations by the federal, state and foreign taxing authorities for the tax years 2013 to 2017. The Company is not currently under income tax examination by any taxing authorities.

The Company has not provided for U.S. taxes on unremitted earnings of its foreign subsidiary as it is operating at a loss and has no earnings and profits to remit. As a result, deferred taxes were not provided related to the cumulative translation adjustments.