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Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12 — Income Taxes

The following table summarizes the provision for income taxes:
Year Ended December 31,
202120202019
(amounts in thousands)
Current:
Federal$9,120 $28,833 $15,041 
State3,766 7,564 6,158 
$12,886 $36,397 $21,199 
Deferred:
Federal$2,118 $(4,903)$(824)
State956 (990)140 
$3,074 $(5,893)$(684)
Tax provision$15,960 $30,504 $20,515 

Deferred income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax basis of assets and liabilities.
Significant components of the Company’s federal and state deferred tax asset and liability balances were as follows:
 Year Ended December 31,
 20212020
(in thousands)
Deferred tax assets:
Allowance for doubtful accounts$16,124 $16,672 
Deferred compensation9,587 8,239 
Deferred payroll taxes under the CARES Act6,220 11,914 
Accrued insurance claims6,252 5,189 
Non-deductible reserves521 309 
Leases247 181 
Other1,854 1,466 
$40,805 $43,970 
Deferred tax liabilities:
Expensing of housekeeping supplies$(3,085)$(3,322)
Amortization of intangibles1
(2,118)(574)
Depreciation of property and equipment(1,915)(1,725)
Other(2,152)(2,795)
$(9,270)$(8,416)
Net deferred tax assets$31,535 $35,554 
1.The amortization of intangibles deferred tax liability includes less than $0.1 million of amortization of the goodwill recognized from the Company's acquisition of a prepackaged meal manufacturer. The goodwill related to the fourth quarter 2021 acquisition of a regional dining operator is not tax-deductible.

Realization of the Company’s deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Management assesses the Company’s income tax positions and records tax benefits for all years subject to examination based upon an evaluation of the facts, circumstances, and information available at the reporting dates, which include historical operating results and expectations of future earnings. As such, management believes it is more likely than not that the deferred tax assets recorded will be realized to reduce future income taxes and therefore no valuation allowances are necessary.

The table below provides a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes:
 Year Ended December 31,
 202120202019
(in thousands)
Income tax expense computed at statutory rate$12,983 $27,129 $17,872 
Increases (decreases) resulting from:
State income taxes, net of federal tax benefit3,931 4,985 4,902 
Federal jobs credits(3,177)(3,089)(3,164)
Tax exempt interest(324)(323)(399)
Share-based compensation1,072 1,323 298 
Fines and penalties1
1,294 20 20 
Other, net181 459 986 
Income tax expense$15,960 $30,504 $20,515 
1.For both the years ended December 31, 2020 and 2019, the Company presented less than $0.1 million of fines and penalties within the Other, net caption. Such amounts have been reclassified to the Fines and penalties caption for comparative purposes.
The Company performs an evaluation each period of its tax positions taken and expected to be taken in tax returns. The evaluation is performed on positions relating to tax years that remain subject to examination by major tax jurisdictions, the earliest of which is the tax year ended December 31, 2016. Based on the evaluation, the Company concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. Therefore, the table reporting on the change in the liability for unrecognized tax benefits during the years ended December 31, 2021 and 2020 is omitted as there is no activity to report in such account for the years ended December 31, 2021 or 2020.