Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of components of provision for income taxes

	Years Ended December 31,
(in thousands)	2020		2019		2018
Current:
Federal	$	(16,986)	$	5,461	$	669
State		192		719		1,117
Total current		(16,794)		6,180		1,786
Deferred:
Federal		15,169		1,803		1,497
State		2,263		(5,029)		1,955
Total deferred		17,432		(3,226)		3,452
Total provision for income taxes	$	638	$	2,954	$	5,238

Schedule of reconciliation of the federal statutory tax rate to our effective tax rate applicable to continuing operations

	Years Ended December 31,
	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	4.5	%	6.0	%	26.6	%
Research and development credits	(28.0)	%	—	%	—	%
Change in uncertain tax positions	6.9	%	0.2	%	5.5	%
Tax benefit from net operating loss carryback	(10.2)	%	—	%	—	%
Permanent items	5.4	%	2.3	%	27.9	%
State tax rate change effect on deferred balance	1.7	%	—	%	27.7	%
Other tax credits	(0.1)	%	(0.1)	%	(5.6)	%
Tax audit adjustments	—	%	0.9	%	8.7	%
Change in valuation allowance	—	%	(22.5)	%	9.5	%
Other	0.4	%	1.9	%	(1.7)	%
Tax provision	1.6	%	9.7	%	119.6	%

Schedule of significant components of the our deferred income tax assets and liabilities

	As of December 31,
(in thousands)	2020		2019
Deferred tax assets:
Lease liabilities	$	35,801	$	31,432
Accrued expenses		15,611		12,789
Provision for doubtful accounts and implicit price concessions		13,291		18,547
Deferred benefit plan compensation		11,199		8,834
Research and development credits		9,637		—
Net operating loss carryforwards		8,907		7,636
Share-based compensation		3,437		4,016
Inventory reserves		2,945		2,554
Refund liabilities		2,518		2,346
Interest on seller notes		844		961
Interest expense		603		8,946
Intangibles		582		1,236
Property, plant, and equipment		—		9,797
Other		1,349		893
Deferred tax assets		106,724		109,987
Less: Valuation allowance		(2,112)		(2,065)
Total deferred tax assets		104,612		107,922
Deferred tax liabilities:
Lease assets		32,069		28,360
Goodwill		9,368		7,960
Property, plant, and equipment		7,198		—
Prepaid expenses		1,100		1,121
Total deferred tax liabilities		49,735		37,441
Net deferred tax assets	$	54,877	$	70,481

Schedule of activity in the valuation allowance

(in thousands)	Balance at								Balance at
Year	Beginning of Year		Acquisitions		Provision		Released		End of Year
2020	$	2,065	$	—	$	47	$	—	$	2,112
2019	$	8,930	$	—	$	238	$	7,103	$	2,065
2018	$	8,754	$	—	$	204	$	28	$	8,930

Summary of reconciliation of liability for unrecognized tax benefits

(in thousands)	2020		2019		2018
Unrecognized tax benefits, at beginning of the year	$	4,331	$	4,765	$	4,860
Additions for tax positions related to the current year		1,026		247		257
Increase related to prior year positions		1,891		—		—
Decrease related to prior year positions		(352)		(337)		(352)
Decrease for lapse of applicable statute of limitations		—		(344)		—
Unrecognized tax benefits, at end of the year	$	6,896	$	4,331	$	4,765