Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense

Components of income tax expense related to net income were as follows (in thousands):

	For the Year Ended December 31,
	2021			2020			2019
Current
U.S. federal	$	329		$	(3,973	)	$	(4,865	)
U.S. state		207			461			66
Total current		536			(3,512	)		(4,799	)

Deferred
U.S. federal		(3,927	)		(491	)		4,895
U.S. state		166			(3,945	)		(1,326	)
Total deferred		(3,761	)		(4,436	)		3,569
Income tax benefit	$	(3,225	)	$	(7,948	)	$	(1,230	)

Schedule of Difference Between Actual Income Tax Provision and Income Taxes

The difference between the actual income tax provision and income taxes computed by applying the U.S. federal statutory rate to earnings (losses) before income taxes is attributable to the following (in thousands):

	For the Year Ended December 31,
	2021			2020			2019
Consolidated income from continuing operations before income taxes - all domestic	$	18,429		$	99,508		$	16,846
Income from continuing operations before income taxes of non-taxable entities		(37,072	)		(119,457	)		(16,902	)
Loss from continuing operations before income taxes of corporate entities		(18,643	)		(19,949	)		(56	)
Federal income tax benefit at statutory rate		(3,915	)		(4,189	)		(11	)
Increase (decrease) due to:
Rate difference on NOL carryback ^(a)		329			(1,003	)		—
Nondeductible expenses		—			1			54
State income taxes, net of federal income tax benefit ^(b)		372			(2,712	)		(995	)
Non-taxable refund		(11	)		(45	)		(278	)
Total income tax benefit	$	(3,225	)	$	(7,948	)	$	(1,230	)

(a)

The CARES Act allowed a 5-year carryback of net operating losses generated in 2020, which resulted in the recognition of an incremental benefit at the 34% statutory federal rate in effect for 2015 through 2017 relative to the current statutory federal rate of 21%.

(b)

The state tax expense in 2021 was primarily driven by gross receipts-based or net assets-based tax in certain states. The state tax benefit in 2020 was primarily driven by changes in apportionment due to a reduction in gross receipts in certain combined filing states where we were generally in a net deferred tax liability position and an increase in gross receipts in separate company filing states that do not conform to federal bonus depreciation rules where we are generally in a net deferred tax asset position. The conversion of company operated sites to dealer operated sites in 2019 resulted in a reduction in gross receipts primarily in combined filing states. See Note 4 for information regarding the acquisition of retail and wholesale assets, which resulted in an increase in gross receipts primarily in separate filing states.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in thousands):

	December 31,
	2021		2020
Deferred income tax assets:
Deferred rent expense	$	121	$	175
Operating and finance lease obligations		34,605		40,274
Asset retirement obligations		10,899		9,847
Intangible assets		9,724		9,994
Other assets ^(a)		13,798		7,361
Total deferred income tax assets		69,147		67,651

Deferred income tax liabilities:
Deferred rent income		948		1,036
Property and equipment		50,274		46,174
Right-of-use assets		30,266		35,463
Total deferred income tax liabilities		81,488		82,673
Net deferred income tax liabilities	$	12,341	$	15,022

(a)

Includes a $2.7 million deferred tax asset related to a $12.7 million federal net operating loss that has no expiration