Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	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

Components of income tax expense

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

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)	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