Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of provision for income taxes relating to continuing operations

Our provision for income taxes relating to continuing operations consists of the following (in thousands):

	December 31,
	2019		2018		2017
Current tax provision—
Federal	$	33,281	$	22,728	$	35,434
State and Puerto Rico		8,388		8,589		6,054
Total current		41,669		31,317		41,488
Deferred tax provision (benefit)—
Federal		(3,750)		4,347		5,391
State and Puerto Rico		(501)		109		(1,213)
Total deferred		(4,251)		4,456		4,178
Provision for income taxes	$	37,418	$	35,773	$	45,666

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results

The provision for income taxes for the years ended December 31, 2019, 2018 and 2017 resulted in effective tax rates on continuing operations of 24.7%, 24.1% and 45.2%, respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands):

	December 31,
	2019			2018			2017
Federal statutory rate of—		21	%		21	%		35	%
Income taxes at the federal statutory rate	$	31,866		$	31,222		$	35,328
Increases (decreases) resulting from—
Net state income taxes		6,644			7,470			2,838
Valuation allowances		(279)			(2,852)			91
Net unrecognized tax benefits		7,338			(15)			153
Nondeductible expenses		2,180			1,926			1,134
R&D tax credits		(4,569)			(2,726)			—
179D deduction		(5,126)			—			—
Net operating loss carryforwards		—			2,225			—
Stock-based compensation deductions		(714)			(1,293)			(1,320)
Domestic production activities deduction		—			—			(2,112)
Corporate tax rate reduction to 21%		—			—			9,478
Other		78			(184)			76
Provision for income taxes	$	37,418		$	35,773		$	45,666

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the balance sheet

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the balance sheets are as follows (in thousands):

	Year Ended
	December 31,
	2019		2018
Deferred tax assets—
Accounts receivable and allowance for doubtful accounts	$	1,660	$	1,445
Stock-based compensation		2,561		2,538
Accrued liabilities and expenses		25,569		19,449
Lease liabilities		20,873		—
Net operating loss carryforwards		2,750		3,242
Intangible assets		7,988		5,071
Other		525		550
Subtotal		61,926		32,295
Valuation allowances		(369)		(648)
Total deferred tax assets		61,557		31,647
Deferred tax liabilities—
Property and equipment		(11,286)		(10,488)
Lease right-of-use asset		(20,873)		—
Long-term contracts		(876)		(688)
Goodwill		(6,020)		(3,864)
Other		(2,004)		(360)
Total deferred tax liabilities		(41,059)		(15,400)
Net deferred tax assets	$	20,498	$	16,247

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and liabilities reflected above are included in the consolidated balance sheets as follows (in thousands):

	December 31,
	2019		2018
Deferred tax assets	$	21,923	$	17,634
Deferred tax liabilities	$	1,425	$	1,387

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):

	Year Ended
	December 31,
	2019		2018		2017
Balance at beginning of year	$	2,966	$	8,929	$	240
Additions based on tax positions related to current year		—		—		8,689
Additions based on tax positions related to prior years		7,473		2,726		—
Reductions for tax positions related to prior years		(240)		(8,689)		—
Reductions for settlements with tax authorities		—		—		—
Balance at end of year	$	10,199	$	2,966	$	8,929