XML 31 R18.htm IDEA: XBRL DOCUMENT v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The Company's deferred income taxes reflect the value of its net operating loss carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their amounts used for income tax calculations.
At December 31, 2022, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $278.0 million, which do not expire but whose use may be limited to 80% of taxable income in any given year. The deferred tax asset balance includes $2.7 million net of a $0.3 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one to twenty years. These NOL CFs are attributable to excess tax deductions related primarily to the accelerated tax depreciation of fixed assets, the timing of amortization related to Amazon warrants and cash contributions for its benefit plans. At December 31, 2022 and 2021, the Company determined that, based upon projections of taxable income, it was more likely than not that the Federal NOL CF’s will be utilized, accordingly, no allowance against these deferred tax assets was recorded. The Company had alternative minimum tax credits of $3.1 million which were recovered in 2020.
The significant components of the deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):
 December 31
 20222021
Deferred tax assets:
Net operating loss carryforward and federal credits$63,200 $93,294 
Warrants31,524 32,075 
Operating lease obligation15,727 13,266 
Post-retirement employee benefits3,081 — 
Employee benefits other than post-retirement5,666 6,919 
Inventory reserve2,920 2,714 
Deferred revenue4,863 10,918 
Other13,519 8,789 
Deferred tax assets140,500 167,975 
Deferred tax liabilities:
Accelerated depreciation(326,804)(327,321)
Post-retirement employee benefits— (1,330)
Partnership items(6,365)(6,014)
Operating lease assets(15,492)(13,029)
State taxes(24,207)(19,158)
Goodwill and intangible assets(18,952)(14,553)
Valuation allowance against deferred tax assets(3,861)(3,861)
Deferred tax liabilities(395,681)(385,266)
Net deferred tax (liability)$(255,181)$(217,291)
The following summarizes the Company’s income tax provisions (benefits) (in thousands):
 Years Ended December 31
 202220212020
Current taxes:
Federal$6,965 $— $(1,332)
Foreign784 — — 
State2,082 2,402 1,235 
Deferred taxes:
Federal45,644 65,027 19,701 
Foreign(57)— — 
State8,642 4,795 (1,209)
Total deferred tax expense54,229 69,822 18,492 
Total income tax expense (benefit) from continuing operations$64,060 $72,224 $16,314 
Income tax expense (benefit) from discontinued operations$633 $722 $2,081 
The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
 Years Ended December 31
 202220212020
Statutory federal tax rate21.0 %21.0 %21.0 %
Foreign income taxes0.2 %— %— %
State income taxes, net of federal tax benefit3.3 %1.8 %5.1 %
Tax effect of non-deductible warrant expense— %— %16.6 %
Tax effect of stock compensation0.2 %— %— %
Tax effect of other non-deductible expenses0.1 %0.5 %3.2 %
Change to state statutory tax rates(0.1)%— %(5.4)%
Other(0.1)%0.7 %(1.1)%
Effective income tax rate24.6 %24.0 %39.4 %
The income tax deductibility of the warrant expense is less than the expense required by GAAP because for tax purposes, the warrants are valued at a different time and under a different valuation method.
The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
 Years Ended December 31
 202220212020
Statutory federal tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit1.8 %1.8 %1.8 %
Change in federal statutory tax rates— %— %— %
Effective income tax rate22.8 %22.8 %22.8 %
The Company files income tax returns in the U.S. Federal jurisdiction and various international, state and local jurisdictions. The returns may be subject to audit by the Internal Revenue Service (“IRS”) and other jurisdictional authorities. International returns consist primarily of disclosure returns where the Company is covered by the sourcing rules of U.S. international treaties. The Company recognizes the impact of an uncertain income tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. At December 31, 2022, 2021 and 2020, the Company's unrecognized tax benefits were $0.0 million, $0.0 million and $0.0 million respectively. Accrued interest and penalties on tax positions are recorded as a component of interest expense. Interest and penalties expense was immaterial for 2022, 2021 and 2020.
The Company began to file, effective in 2008, federal tax returns under a common parent of the consolidated group that includes ABX and all the wholly-owned subsidiaries. The returns for 2021, 2020 and 2019 related to the consolidated group remain open to examination. The consolidated federal tax returns prior to 2019 remain open to federal examination only to the extent of net operating loss carryforwards carried over from or utilized in those years. State and local returns filed for 2005 through 2021 are generally also open to examination by their respective jurisdictions, either in full or limited to net operating losses. The Company files tax returns with the Republic of Ireland for its leasing operations based in Ireland.