Income Taxes (Notes)

12 Months Ended

Dec. 31, 2022

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)	2022		2021
Deferred tax liabilities
Prepaid assets	$	(5,395)	$	(4,665)
Depreciation	(7,448)		(8,210)
Software development costs	(2,598)		(11,140)
Tenant improvements	(3,139)		(3,517)
Right-of-use leased assets	(16,371)		(18,205)
Intangibles	(2,247)		(1,946)
Total deferred tax liabilities	(37,198)		(47,683)
Deferred tax assets
Accrued incentive compensation	13,116		11,117
Net operating loss carryforward	407		487
Workers’ compensation accruals	5,358		6,592
Accrued rent	1,790		1,858
Stock-based compensation	12,255		8,886
Operating lease liabilities	19,508		21,722
Minority investment impairment	675		681
Cares act deferral	—		1,626
Other	297		287
Total deferred tax assets	53,406		53,256
Valuation allowance	(675)		(681)
Total net deferred tax assets	52,731		52,575
Net deferred tax assets	$	15,533	$	4,892

The components of income tax expense are as follows:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Current income tax expense
Federal	$	61,649	$	30,887	$	45,558
State	15,067		8,640		11,122
Total current income tax expense	76,716		39,527		56,680
Deferred income tax (benefit) expense
Federal	(8,844)		4,562		(4,678)
State	(1,797)		149		(969)
Total deferred income tax (benefit) expense	(10,641)		4,711		(5,647)
Total income tax expense	$	66,075	$	44,238	$	51,033

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)	2022		2021		2020
Expected income tax expense at 21%	$	51,539	$	35,347	$	39,747
State income taxes, net of federal benefit	10,106		6,974		7,818
Nondeductible expenses	4,338		7,362		3,641
Equity compensation, net	1,345		(4,427)		1,335
Research and development credit	(1,241)		(1,018)		(1,479)
Other, net	(12)		—		(29)
Reported total income tax expense	$	66,075	$	44,238	$	51,033

At December 31, 2022, we have net operating loss carryforwards totaling $1.6 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, 2022, 2021 and 2020, we have no uncertain tax positions, and as a result, have made no provisions for interest or penalties related to uncertain tax positions. The tax years 2019 through 2021 remain open to examination by the Internal Revenue Service of the United States. The tax years 2018 through 2021 remain open to examination by various state tax authorities.