Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The provision for income taxes is as follows (in thousands):

Deferred income tax assets and liabilities consist of the following components (in thousands):

	December 31,
	2019			2018
Deferred income tax assets:
Workers' compensation claims liabilities	$	12,151		$	9,261
MCC accrual		1,458			2,234
Customer incentives		333			2,718
Deferred compensation		1,988			1,541
Equity based compensation		913			994
Tax effect of unrealized losses, net		—			1,966
State credit carryforward		923			988
State loss carryforward		33			2,396
Operating lease liability		5,920			—
Other		1,345			1,703
		25,064			23,801
Less: valuation allowance		173			264
		24,891			23,537
Deferred income tax liabilities:
Tax depreciation in excess of book depreciation		(3,421	)		(4,258	)
Tax amortization of goodwill		(10,312	)		(9,948	)
Tax effect of unrealized gains, net		(1,058	)		—
Operating lease right-of-use		(5,588	)		—
Other		(1,724	)		(873	)
		(22,103	)		(15,079	)
Net deferred income tax assets	$	2,788		$	8,458

The effective tax rate differed from the U.S. statutory federal tax rate due to the following:

	Year Ended December 31,
	2019				2018				2017
Statutory federal tax rate		21.0		%		21.0		%		35.0		%
State taxes, net of federal benefit		6.2				0.3				(4.0	)
Adjustment for final positions on filed returns		(0.2	)			(1.1	)			(1.1	)
Nondeductible expenses and other, net		1.3				1.2				1.5
Federal and state tax credits		(7.5	)			(6.4	)			(7.7	)
Change in federal tax rate		—				—				3.2
Other, net		0.2				—				(0.1	)
		21.0		%		15.0		%		26.8		%