Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2019
Current tax provision—
Federal	$	31,283	$	36,556	$	33,281
State		8,741		12,798		8,388
Total current		40,024		49,354		41,669
Deferred tax provision (benefit)—
Federal		6,197		(5,483)		(3,750)
State		705		(2,470)		(501)
Total deferred		6,902		(7,953)		(4,251)
Provision for income taxes	$	46,926	$	41,401	$	37,418

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, 2021, 2020 and 2019 resulted in effective tax rates on continuing operations of 24.7%, 21.6% and 24.7%, respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands):

	December 31,
	2021			2020			2019
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	39,958		$	40,223		$	31,866
Increases (decreases) resulting from—
Net state income taxes		7,340			8,406			6,644
Valuation allowances		(39)			(254)			(279)
Net unrecognized tax benefits		640			18,557			7,338
Nondeductible expenses		2,381			2,470			2,180
R&D tax credit		—			(26,133)			(4,569)
179D deduction		(1,207)			(1,062)			(5,126)
Stock-based compensation deductions		(2,210)			(426)			(714)
Other		63			(380)			78
Provision for income taxes	$	46,926		$	41,401		$	37,418

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,
	2021		2020
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	1,878	$	2,186
Stock-based compensation		3,392		2,791
Accrued liabilities and expenses		36,255		39,761
Lease liabilities		27,944		22,768
Net operating loss carryforwards		10,379		12,127
Intangible assets		3,851		—
Other		758		627
Subtotal		84,457		80,260
Valuation allowances		(475)		(514)
Total deferred tax assets		83,982		79,746
Deferred tax liabilities—
Property and equipment		(15,534)		(13,877)
Lease right-of-use asset		(27,905)		(22,715)
Long-term contracts		(964)		(609)
Intangible assets		—		(242)
Goodwill		(17,321)		(11,615)
Other		(1,098)		(2,626)
Total deferred tax liabilities		(62,822)		(51,684)
Net deferred tax assets	$	21,160	$	28,062

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,
	2021		2020
Deferred tax assets	$	22,905	$	29,401
Deferred tax liabilities	$	1,745	$	1,339

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,
	2021		2020		2019
Balance at beginning of year	$	28,756	$	10,199	$	2,966
Additions based on tax positions related to current year		207		—		—
Additions based on tax positions related to prior years		489		26,858		7,473
Reductions for tax positions related to prior years		—		—		(240)
Reductions for settlements with tax authorities		—		(8,301)		—
Balance at end of year	$	29,452	$	28,756	$	10,199