Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Significant components of net deferred tax assets and net deferred tax liabilities

Significant components of the net deferred tax assets as reflected on the Consolidated Balance Sheets are as follows:



	December 31,
(in thousands)	2018			2017

Deferred tax liabilities
Prepaid assets	$	(3,306	)	$	(3,957	)
Depreciation	(3,918		)	(2,021		)
Software development costs	(4,950		)	(3,732		)
Intangibles	(474		)	—
Total deferred tax liabilities	(12,648		)	(9,710		)

Deferred tax assets
Accrued incentive compensation	8,612			3,510
Net operating loss carryforward	709			774
Workers’ compensation accruals	4,739			4,586
Accrued rent	918			676
Stock-based compensation	6,183			4,233
Minority investment impairment	676			667
Other	305			216
Total deferred tax assets	22,142			14,662
Valuation allowance	(678		)	(669		)
Total net deferred tax assets	21,464			13,993

Net deferred tax assets	$	8,816		$	4,283

Components of income tax expense

The components of income tax expense are as follows:



	Year Ended December 31,
(in thousands)	2018			2017		2016

Current income tax expense
Federal	$	40,347		$	30,009	$	31,045
State	11,133			5,988		5,190
Total current income tax expense	51,480			35,997		36,235

Deferred income tax (benefit) expense
Federal	(3,398		)	9,549		2,641
State	(1,135		)	193		310
Total deferred income tax (benefit) expense	(4,533		)	9,742		2,951
Total income tax expense	$	46,947		$	45,739	$	39,186

Reconciliation of income tax expense

The reconciliation of income tax expense computed at U.S. federal statutory tax rates to the reported income tax expense from continuing operations is as follows:



	Year Ended December 31,
(in thousands)	2018			2017			2016

Expected income tax expense at 21%, 35% and 35%, respectively	$	38,296		$	45,549		$	36,812
State income taxes, net of federal benefit	7,660			4,085			3,684
Nondeductible expenses	4,831			2,649			1,669
Section 199 benefits	—			(875		)	(686		)
Equity compensation	(2,737		)	(6,218		)	(1,338		)
Research and development credit	(856		)	(634		)	(751		)
Disaster employee retention credit	—			(669		)	—
Enactment of the 2017 Tax Reform Act	—			2,559			—
Other, net	(247		)	(707		)	(204		)
Reported total income tax expense	$	46,947		$	45,739		$	39,186