XML 34 R21.htm IDEA: XBRL DOCUMENT v3.22.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of the provision for income taxes are as follows:
($ in thousands)
Year Ended December 31,
202220212020
Federal:
Current
$— $(52)$— 
Deferred
4,157 (15,143)(27,104)
4,157 (15,195)(27,104)
State:
Current
1,143 88 221 
Deferred
56 855 (597)
1,199 943 (376)
Total income tax expense
$5,356 $(14,252)$(27,480)
Reconciliation between the amounts determined by applying the federal statutory rate of 21% for years ended December 31, 2022, 2021 and 2020 to income tax (benefit) expense is as follows:
($ in thousands)
Year Ended December 31,
202220212020
Taxes at federal statutory rate
$1,551 $(14,372)$(28,245)
State taxes, net of federal benefit
709 61 154 
Section 162(m) limitation3,423 616 3 
Stock-based compensation
(767)(2,549)751 
Valuation allowance
(336)825 868 
Other
776 1,167 (1,011)
Total income tax (benefit) expense
$5,356 $(14,252)$(27,480)
Deferred tax assets and liabilities are recognized for estimated future tax effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. The significant items giving rise to deferred tax assets (liabilities) are as follows:
($ in thousands)
December 31,
20222021
Deferred Income Tax Assets
Accrued liabilities
$1,280 $911 
Allowance for credit losses88 46 
Goodwill and other intangible assets
2,451 2,161 
Stock‑based compensation
3,658 3,382 
Net operating losses
90,397 87,822 
Other
490 56 
Total deferred tax assets
98,364 94,378 
Valuation allowance
(1,357)(1,693)
Total deferred tax assets — net
$97,007 $92,685 
Deferred Income Tax Liabilities
Property and equipment
$(161,195)$(152,624)
Prepaid expenses
(1,077)(1,113)
Total deferred tax liabilities
$(162,272)$(153,737)
Net deferred tax liabilities
$(65,265)$(61,052)
The Tax Cuts and Jobs Act (the "TCJA") included a reduction to the maximum deduction allowed for net operating losses generated in tax years after December 31, 2017, and the elimination of carrybacks of net operating losses. Under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, which modified the TCJA, U.S. federal net operating loss carryforwards ("NOLs") generated in taxable periods beginning after December 31, 2017, may be carried forward indefinitely, but the deductibility of such NOLs in taxable years beginning after December 31, 2020, is limited to 80% of taxable income. As of December 31, 2022, the Company had approximately $421.7 million of U.S.federal NOLs, some of which will begin to expire in 2035. Approximately $219.5 million of the Company’s U.S. federal NOLs relate to pre-2018 periods. As of December 31, 2022, the Company’s state NOLs were approximately $50.4 million and will begin to expire in 2024. Utilization of NOLs carryforwards may be limited due to past or future ownership changes. As of December 31, 2022, we determined that $1.4 million valuation allowance was necessary against our state deferred tax assets.
The Company’s U.S. federal income tax returns for the year ended December 31, 2019, and through the most recent filing remain open to examination by the Internal Revenue Service under the applicable U.S. federal statute of limitations provisions. The various states in which the Company is subject to income tax are generally open to examination for the tax years ended December 31, 2018, and through the most recent filing.
The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than fifty percent likely to be realized upon ultimate settlement with the related tax authority. As of December 31, 2022, 2021 and 2020, no uncertain tax positions were recorded. The Company will continue to evaluate its tax positions in accordance with ASC 740 and will recognize any future effect as either a benefit or charge to income in the applicable period.
Income tax penalties and interest assessments recognized under ASC 740 are accrued as a tax expense in the period that the Company’s taxes are in an uncertain tax position. Any accrued tax penalties or interest assessments will remain until the uncertain tax position is resolved with the taxing authorities or until the applicable statute of limitations has expired.