Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019

Deferred tax liabilities
Prepaid assets	$	(4,207)	$	(4,252)
Depreciation	(4,941)		(4,564)
Software development costs	(8,230)		(6,475)
Tenant improvements	(3,702)		(3,209)
Right-of-use leased assets	(17,322)		(15,949)
Intangibles	(1,444)		(955)
Total deferred tax liabilities	(39,846)		(35,404)

Deferred tax assets
Accrued incentive compensation	5,092		5,946
Net operating loss carryforward	558		632
Workers’ compensation accruals	6,310		5,404
Accrued rent	1,553		1,223
Stock-based compensation	11,383		6,712
Operating lease liabilities	21,024		19,158
Minority investment impairment	676		673
Cares act deferral	3,235		—
Other	294		287
Total deferred tax assets	50,125		40,035
Valuation allowance	(676)		(675)
Total net deferred tax assets	49,449		39,360

Net deferred tax assets	$	9,603	$	3,956

Components of income tax expense

The components of income tax expense are as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018

Current income tax expense
Federal	$	45,558	$	27,385	$	40,347
State	11,122		6,299		11,133
Total current income tax expense	56,680		33,684		51,480

Deferred income tax (benefit) expense
Federal	(4,678)		4,016		(3,398)
State	(969)		844		(1,135)
Total deferred income tax (benefit) expense	(5,647)		4,860		(4,533)
Total income tax expense	$	51,033	$	38,544	$	46,947

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)	2020		2019		2018

Expected income tax expense at 21%	$	39,747	$	39,825	$	38,296
State income taxes, net of federal benefit	7,818		5,821		7,660
Nondeductible expenses	3,641		5,959		4,831

Equity compensation, net	1,335		(12,120)		(2,737)
Research and development credit	(1,479)		(1,069)		(856)


Other, net	(29)		128		(247)
Reported total income tax expense	$	51,033	$	38,544	$	46,947