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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The provision for income taxes consists of the following:


	Year Ended December 31,
(in millions)	2023		2022		2021
Current:
Federal	$	96	$	112	$	86
State	24		36		28
Foreign	2		—		1
Total Current	122		148		115
Deferred:
Federal	1		(17)		(7)
State	3		(6)		(3)
Foreign	—		2		(2)

Total Deferred	4		(21)		(12)
Total	$	126	$	127	$	103

Schedule of U.S. Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate

The U.S. federal statutory income tax rate reconciled to our effective tax rate is as follows:


	Year Ended December 31,
	2023						2022						2021
(in millions, except percent)	Pre-Tax Income		Tax Expense/(Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income		Tax Expense/(Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income		Tax Expense/(Benefit)		Percent of Pre-Tax Income (Loss)
	$	501					$	482					$	441
U.S. federal statutory tax rate			$	105	21	%			$	101	21	%			$	93	21	%
State income taxes, net of federal benefit			34		7				34		7				32		7

Tax rate change			1		—				—		—				(1)		—

Nondeductible meals, entertainment and penalties			2		—				3		1				2		—
Stock based compensation			(2)		—				3		1				(2)		—
Uncertain tax positions			—		—				—		—				(1)		—
Tax credits			(6)		(1)				(8)		(2)				(7)		(2)


State and tax return to provision adjustments			(11)		(2)				(9)		(2)				(10)		(2)


Other			3		—				3		—				(3)		(1)
Total			$	126	25	%			$	127	26	%			$	103	23	%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows:


	Year Ended December 31,
(in millions)	2023		2022
Deferred tax assets:
Net operating losses (federal and state)	$	6	$	7
Accrued expenses	18		17
Accrued workers' compensation costs	9		8
Recovery credit	2		20
Operating lease liabilities	11		14
Stock based compensation	2		3
Tax benefits relating to uncertain positions	1		1
Tax credits (federal, state and foreign)	7		7
Section 174 Capitalized R&D	21		13
Other	2		3

Total	79		93
Valuation allowance	(8)		(8)
Total deferred tax assets	71		85
Deferred tax liabilities:
Depreciation and amortization	(48)		(54)


Prepaid commission expenses	(26)		(24)
Operating lease right-of-use assets	(5)		(10)

Total deferred tax liabilities	(79)		(88)
Net deferred tax liabilities	$	(8)	$	(3)

Schedule of Reconciliation of Beginning and Ending Valuation Allowance

A reconciliation of the beginning and ending amount of the valuation allowance is presented in the table below:


	Year Ended December 31,
(in millions)	2023		2022		2021
Valuation allowance at January 1	$	8	$	5	$	5
Charged to net income	—		3		—

Valuation allowance at December 31	8		8		5

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) related to uncertain income tax provisions, which would affect the effective tax rate if recognized, is presented in the table below:


	Year Ended December 31,
(in millions)	2023		2022		2021
Unrecognized tax benefits at January 1	$	7	$	7	$	8

Additions for tax positions of current period	2		2		1

Reductions for tax positions of prior period:

Lapse of applicable statute of limitations	(2)		(2)		(1)

Adjustments to tax positions	—		—		(1)
Unrecognized tax benefits at December 31	$	7	$	7	$	7