Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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)	2019			2018

Deferred tax liabilities
Prepaid assets	$	(4,252	)	$	(3,306	)
Depreciation	(4,564		)	(3,918		)
Software development costs	(6,475		)	(4,950		)
Tenant improvements	(3,209		)	—
Right-of-use leased assets	(15,949		)	—
Intangibles	(955		)	(474		)
Total deferred tax liabilities	(35,404		)	(12,648		)

Deferred tax assets
Accrued incentive compensation	5,946			8,612
Net operating loss carryforward	632			709
Workers’ compensation accruals	5,404			4,739
Accrued rent	1,223			918
Stock-based compensation	6,712			6,183
Operating lease liabilities	19,158			—
Minority investment impairment	673			676
Other	287			305
Total deferred tax assets	40,035			22,142
Valuation allowance	(675		)	(678		)
Total net deferred tax assets	39,360			21,464

Net deferred tax assets	$	3,956		$	8,816

Components of income tax expense

The components of income tax expense are as follows:



	Year Ended December 31,
(in thousands)	2019		2018			2017

Current income tax expense
Federal	$	27,385	$	40,347		$	30,009
State	6,299		11,133			5,988
Total current income tax expense	33,684		51,480			35,997

Deferred income tax (benefit) expense
Federal	4,016		(3,398		)	9,549
State	844		(1,135		)	193
Total deferred income tax (benefit) expense	4,860		(4,533		)	9,742
Total income tax expense	$	38,544	$	46,947		$	45,739

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)	2019			2018			2017

Expected income tax expense at 21%, 21% and 35%, respectively	$	39,825		$	38,296		$	45,549
State income taxes, net of federal benefit	5,821			7,660			4,085
Nondeductible expenses	5,959			4,831			2,649
Section 199 benefits	—			—			(875		)
Equity compensation	(12,120		)	(2,737		)	(6,218		)
Research and development credit	(1,069		)	(856		)	(634		)
Disaster employee retention credit	—			—			(669		)
Enactment of the 2017 Tax Reform Act	—			—			2,559
Other, net	128			(247		)	(707		)
Reported total income tax expense	$	38,544		$	46,947		$	45,739