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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Provision for income taxes on continuing operations
The provision for income tax expense for the years ended December 31, 2021, 2020 and 2019 is summarized as follows:

Year Ended December 31,
202120202019
Current:
Federal$1,768 $5,058 $562 
State566 1,478 278 
Total current2,334 6,536 840 
Deferred:
Federal(1,360)(3,348)1,070 
State(392)(838)175 
Total deferred(1,752)(4,186)1,245 
Total income tax expense$582 $2,350 $2,085 
Reconciliation of federal statutory rate to effective tax rate
A reconciliation of the federal statutory rate to the effective tax rate for income from continuing operations for the years ended December 31, 2021, 2020 and 2019, respectively, is comprised as follows:

Year Ended December 31,
202120202019
Income tax expense at statutory rate21.0 %21.0 %21.0 %
State income taxes - net of federal benefit3.9 2.7 6.8 
Non-deductible meals and entertainment1.8 0.3 1.8 
Non-deductible equity compensation(c)
19.4 — — 
Section 162(m) limitation2.1 — — 
Non-deductible accrued bonus2.7 — — 
Other non-deductible expenses0.7 0.1 0.8 
Transaction costs(a)
— — 41.2 
Tax credits— — (1.6)
Deductible equity compensation(b)
(34.1)(10.8)(30.0)
Noncontrolling interest5.0 0.3 — 
Other adjustments(1.2)(0.5)(0.4)
Total income tax provision(d)
21.3 %13.1 %39.6 %
(a)
The Company's completion of the Spin-Off in the year ended December 31, 2019 resulted in the Company not being able to deduct approximately $10,300 of the related transaction costs, which increased the effective tax rate significantly and affected all items that were impacted by this exclusion.
(b)
During the year ended December 31, 2021, employees exercised stock options representing approximately 115 shares. During the year ended December 31, 2020, employees exercised stock options representing approximately 239 shares. During the year ended December 31, 2019, employees exercised stock options representing approximately 100 shares and had restricted stock awards vest representing 960 shares. These exercises and vestings resulted in tax benefits that reduced the Company's effective tax rate significantly in all three years.
(c)
During the year ended December 31, 2021, approximately $2,528 of the share-based compensation expense related to restricted stock did not result in a deferred tax asset because it will be subject to future limitation under IRC Section 162(m).
(d)Certain items in the prior year have been reclassified to conform with the current year presentation.
Deferred tax assets and liabilities
The Company’s deferred tax assets and liabilities for the years ended December 31, 2021 and 2020 are summarized below.

Year Ended December 31,
 20212020
Deferred tax assets (liabilities):
Accrued expenses$9,829 $8,181 
Allowance for doubtful accounts1,728 875 
State taxes— 147 
Lease liabilities79,575 80,979 
Insurance953 277 
Gross deferred tax assets92,085 90,459 
Less: valuation allowance(25)(15)
Net deferred tax assets92,060 90,444 
Depreciation and amortization(8,432)(7,512)
Prepaid expenses(907)(780)
Right of use asset(78,656)(80,055)
State taxes(217)— 
Total deferred tax liabilities(88,212)(88,347)
Net deferred tax assets (liabilities)$3,848 $2,097 
Schedule of unrecognized tax benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Year Ended December 31,
202120202019
Balance at January 1$— $— $— 
Additions for tax positions of prior years188 — — 
Reductions for tax positions related to the current year(123)— — 
Balance at December 3165 $— $—