Income Taxes Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Schedule of Components of Income Tax Expense (Benefit) |
The provision for income taxes consisted of the following (in thousands): | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2019 | | 2020 | | 2021 | Current: | | | | | | U. S. federal provision (benefit) | $ | (2,039) | | | $ | 1,778 | | | $ | 8,848 | | State provision (benefit) | (195) | | | 2,177 | | | 2,989 | | Total current provision (benefit) | $ | (2,234) | | | $ | 3,955 | | | $ | 11,837 | | Deferred: | | | | | | U. S. federal provision (benefit) | $ | 8,056 | | | $ | 3,994 | | | $ | (452) | | State provision (benefit) | 2,061 | | | 603 | | | (240) | | Total deferred provision (benefit) | $ | 10,117 | | | $ | 4,597 | | | $ | (692) | | Total income tax provision | $ | 7,883 | | | $ | 8,552 | | | $ | 11,145 | |
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of income taxes calculated at the U.S. federal statutory rate to those reflected in the Consolidated Statements of Operations is as follows (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | 2019 | | 2020 | | 2021 | | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent | | Federal statutory rate | $ | 4,707 | | | 21.0 | | % | $ | 5,175 | | | 21.0 | | % | $ | 9,304 | | | 21.0 | | % | Effect of state income taxes, net of federal benefit | 1,352 | | | 6.0 | | | 2,080 | | | 8.4 | | | 2,180 | | | 4.9 | | | Effect of non-deductible expenses and other, net | 947 | | | 4.2 | | | 460 | | | 1.9 | | | (423) | | | (1.0) | | | Effect of divestitures and impairment of businesses | 911 | | | 4.10 | | | 846 | | | 3.40 | | | 103 | | | 0.2 | | | Change in valuation allowance, net of federal benefit | (34) | | | (0.2) | | | (9) | | | — | | | (19) | | | — | | | | | | | | | | | | | | | | Total | $ | 7,883 | | | 35.1 | | % | $ | 8,552 | | | 34.7 | | % | $ | 11,145 | | | 25.1 | | % |
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Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences from total operations that give rise to significant deferred tax assets and liabilities are as follows (in thousands): | | | | | | | | | | | | | Years Ended December 31, | | 2020 | | 2021 | Deferred income tax assets: | | | | Net operating loss carryforwards | $ | 1,570 | | | $ | 1,268 | | Interest expense limitation | 18 | | | 2,777 | | Tax credit carryforwards | 100 | | | 88 | | State depreciation | 1,264 | | | 1,195 | | Accrued and other liabilities | 6,313 | | | 7,552 | | Amortization of non-compete agreements | 1,117 | | | 1,172 | | Prepaid and other assets | 741 | | | 616 | | | | | | Total deferred income tax assets | 11,123 | | | 14,668 | | Less valuation allowance | (222) | | | (198) | | Total deferred income tax assets | $ | 10,901 | | | $ | 14,470 | | Deferred income tax liabilities: | | | | Depreciation and amortization | $ | (50,946) | | | $ | (56,030) | | Preneed liabilities | (6,427) | | | (4,224) | | Convertible Notes | (5) | | | — | | | | | | Total deferred income tax liabilities | (57,378) | | | (60,254) | | Total net deferred tax liabilities | $ | (46,477) | | | $ | (45,784) | |
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Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2019 | | 2020 | | 2021 | Unrecognized tax benefit at beginning of year | $ | — | | | $ | 691 | | | $ | 3,656 | | Gross increases - tax positions in prior period | 691 | | | — | | | — | | Gross decreases - tax positions in prior period | — | | | (691) | | | — | | Gross increases - tax positions in current period | — | | | 3,656 | | | 105 | | | | | | | | Unrecognized tax benefit at end of year | $ | 691 | | | $ | 3,656 | | | $ | 3,761 | |
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