Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	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

Components of income tax expense

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

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)	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