Income Taxes (Notes)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes.

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

	December 31,
(in thousands)	2021		2020
Deferred tax liabilities
Prepaid assets	$	(4,665)	$	(4,207)
Depreciation	(8,210)		(4,941)
Software development costs	(11,140)		(8,230)
Tenant improvements	(3,517)		(3,702)
Right-of-use leased assets	(18,205)		(17,322)
Intangibles	(1,946)		(1,444)
Total deferred tax liabilities	(47,683)		(39,846)
Deferred tax assets
Accrued incentive compensation	11,117		5,092
Net operating loss carryforward	487		558
Workers’ compensation accruals	6,592		6,310
Accrued rent	1,858		1,553
Stock-based compensation	8,886		11,383
Operating lease liabilities	21,722		21,024
Minority investment impairment	681		676
Cares act deferral	1,626		3,235
Other	287		294
Total deferred tax assets	53,256		50,125
Valuation allowance	(681)		(676)
Total net deferred tax assets	52,575		49,449
Net deferred tax assets	$	4,892	$	9,603

The components of income tax expense are as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Current income tax expense
Federal	$	30,887	$	45,558	$	27,385
State	8,640		11,122		6,299
Total current income tax expense	39,527		56,680		33,684
Deferred income tax (benefit) expense
Federal	4,562		(4,678)		4,016
State	149		(969)		844
Total deferred income tax (benefit) expense	4,711		(5,647)		4,860
Total income tax expense	$	44,238	$	51,033	$	38,544

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)	2021		2020		2019
Expected income tax expense at 21%	$	35,347	$	39,747	$	39,825
State income taxes, net of federal benefit	6,974		7,818		5,821
Nondeductible expenses	7,362		3,641		5,959
Equity compensation, net	(4,427)		1,335		(12,120)
Research and development credit	(1,018)		(1,479)		(1,069)
Other, net	—		(29)		128
Reported total income tax expense	$	44,238	$	51,033	$	38,544

At December 31, 2021, we have net operating loss carryforwards totaling $1.9 million that expire from 2024 to 2030 related to an acquisition that occurred in 2010.

We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2021, 2020 and 2019, we made no provisions for interest or penalties related to uncertain tax positions. The tax years 2018 through 2020 remain open to examination by the Internal Revenue Service of the United States. The tax years 2017 through 2020 remain open to examination by various state tax authorities.