Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of income Tax Provision

The components of the income tax provision include:

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Current:
Federal	$	142,203		$	82,238		$	41,847
State		29,924			17,100			9,647
Foreign		—			—			—
Total current tax expense		172,127			99,338			51,494
Deferred:
Federal		(21,755	)		(3,694	)		(738	)
State		(4,507	)		(1,193	)		(170	)
Foreign		—			—			—
Total deferred tax expense		(26,262	)		(4,887	)		(908	)
Change in valuation allowance		196			—			—
Total income tax expense	$	146,061		$	94,451		$	50,586

Summary of Federal Statutory Income Tax Rate Percentage to Effective Tax Rate

A reconciliation of the Federal statutory income tax rate percentage to the effective tax rate is as follows:

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Income before income taxes	$	163,506		$	157,449		$	103,681
Federal statutory rate		21.0	%		21.0	%		21.0	%
Theoretical tax expense		34,336			33,064			21,773
State taxes		25,417			12,407			9,477
Other		681			(1,666	)		1,310
Tax effect of non-deductible expenses:
Section 280E permanent differences		85,627			50,646			18,026
		111,725			61,387			28,813
Tax expense	$	146,061		$	94,451		$	50,586

Summary of Deferred Income Taxes

Deferred income taxes consist of the following as of December 31, 2021, and 2020, and 2019:

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Deferred tax assets
Lease liabilities	$	10,752		$	1,219		$	1,020
Finance liabilities		15,715			—			—
Net operating losses		7,845			—			—
Other deferred tax assets		1,567			7,025			969
Deferred tax liabilities
Right of use assets		(10,285	)		(1,210	)		(1,099	)
Intangible assets		(261,673	)		(18,999	)		(6,144	)
Property and equipment		(8,406	)		(3,482	)		(233	)
Lease payments		—			—			—
Valuation allowance		(6,826	)		—			—
Net deferred tax liability	$	(251,311	)	$	(15,447	)	$	(5,487	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2021		2020
Beginning balance	$	3,770	$	3,770
Additions based on tax positions related to the current year		—		—
Additions for tax positions of prior years' recorded to goodwill		41,080		—
Ending balance	$	44,850	$	3,770