Income Taxes (Notes)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

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)	2023		2022
Deferred tax liabilities
Prepaid assets	$	(4,191)	$	(5,395)
Depreciation	(6,477)		(7,448)
Software development costs	—		(2,598)
Tenant improvements	(3,380)		(3,139)
Right-of-use leased assets	(16,624)		(16,371)
Intangibles	(2,595)		(2,247)
Total deferred tax liabilities	(33,267)		(37,198)
Deferred tax assets
Accrued incentive compensation	8,553		13,116
Net operating loss carryforward	332		407
Workers’ compensation accruals	4,588		5,358
Accrued rent	1,781		1,790
Software development costs	3,717		—
Stock-based compensation	14,332		12,255
Operating lease liabilities	20,007		19,508
Other	1,010		972
Total deferred tax assets	54,320		53,406
Valuation allowance	(706)		(675)
Total net deferred tax assets	53,614		52,731
Net deferred tax assets	$	20,347	$	15,533

The components of income tax expense are as follows:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Current income tax expense
Federal	$	49,058	$	61,649	$	30,887
State	9,452		15,067		8,640
Total current income tax expense	58,510		76,716		39,527
Deferred income tax (benefit) expense
Federal	(3,887)		(8,844)		4,562
State	(927)		(1,797)		149
Total deferred income tax (benefit) expense	(4,814)		(10,641)		4,711
Total income tax expense	$	53,696	$	66,075	$	44,238

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)	2023		2022		2021
Expected income tax expense at 21%	$	47,266	$	51,539	$	35,347
State income taxes, net of federal benefit	6,540		10,106		6,974
Nondeductible expenses	5,455		4,338		7,362
Equity compensation, net	(4,386)		1,345		(4,427)
Research and development credit	(1,183)		(1,241)		(1,018)
Other, net	4		(12)		—
Reported total income tax expense	$	53,696	$	66,075	$	44,238

At December 31, 2023, we have net operating loss carryforwards totaling $1.3 million that expire from 2025 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, 2023, 2022 and 2021, 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 2020 through 2022 remain open to examination by the Internal Revenue Service of the United States. The tax years 2019 through 2022 remain open to examination by various state tax authorities.