Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

Provision for income taxes consisted of the following (in thousands):

	Years ended December 31,
	2022		2021		2020
Current
Federal	$	30,625	$	22,801	$	43,572
State	13,141		11,605		19,155
	43,766		34,406		62,727
Deferred
Federal	(8,049)		(3,794)		(4,963)
State	368		(2,158)		(1,657)
	(7,681)		(5,952)		(6,620)
Total provision for income taxes	$	36,085	$	28,454	$	56,107

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2022 and 2021, are shown below (in thousands). A valuation allowance of $33.0 million and $22.4 million as of December 31, 2022 and 2021, respectively, has been established against the Company’s deferred tax assets related to loss entities the Company cannot consolidate under the federal consolidation rules, as realization of these assets is uncertain. Valuation allowance increased by $10.6 million in 2022.

	2022		2021
Deferred tax assets
State taxes	$	2,848	$	2,379
Accrued expenses	670		1,864
Allowance for bad debts	853		153
Investment in other entities	2,145		3,289
Net operating loss carryforward	35,749		28,992
Lease liability	6,470		4,208
Unrealized gain	8,971		3,007
Stock options	1,011		—
Other	692		705
Deferred tax assets before valuation allowance	59,409		44,597
Valuation allowance	(32,986)		(22,351)
Net deferred tax assets	26,423		22,246
Deferred tax liabilities
Property and equipment	(1,840)		(777)
Acquired intangible assets	(21,268)		(23,763)
Stock options	—		(1,641)
Right-of-use assets	(5,632)		(4,117)
Debt issuance cost	(725)		(988)
481(a) adjustment	—		(87)
Deferred tax liabilities	(29,465)		(31,373)
Net deferred liabilities	$	(3,042)	$	(9,127)

Schedule of Effective Income Tax Rate Reconciliation for Provision for Income Taxes

The provision for income taxes differs from the amount computed by applying the federal income tax rate as follows for the years ended December 31:

	Years ended December 31,
	2022		2021		2020
Tax provision at U.S. federal statutory rates	21.0	%	21.0	%	21.0	%
State income taxes net of federal benefit	7.2		7.8		7.7
Non-deductible permanent items	0.6		3.7		0.3
Variable interest entities	(1.1)		(1.3)		(0.2)
Stock-based compensation	(0.3)		(1.0)		0.3
Change in valuation allowance	11.7		8.9		3.2
Investment basis adjustment	1.2		(2.1)		—
Other	1.4		—		(1.0)
Effective income tax rate	41.7	%	36.9	%	31.3	%