Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income from Continuing Operations Before Income Taxes

For financial reporting purposes, income before income taxes includes the following components (in thousands):

	2023		2022		2021
United States	$	165,869	$	141,288	$	92,823
Foreign (Canada)	434		187		193
Total	$	166,303	$	141,475	$	93,016

Income Tax Expense Included in Consolidated Statements of Comprehensive Income

Income tax expense included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands): 

	2023		2022		2021
Current:
Federal	$	29,835	$	20,910	$	12,369
Foreign	116		50		52
State and local	10,298		7,299		3,397
Total	40,249		28,259		15,818
Deferred:
Federal	3,978		5,667		5,029
State and local	1,108		2,195		1,282
Total	5,086		7,862		6,311
Total income tax expense	45,335		36,121		22,129

Provision for Income Taxes Attributable to Income from Continuing Operations

The provision for income taxes attributable to income operations differed from the amount obtained by applying the federal statutory income tax rate to income before income taxes, as follows (in thousands, except percentages):

	2023			2022			2021
Tax at U.S. federal statutory rates	$	34,924		$	29,714		$	19,538
State taxes (net of federal benefit)	10,576			9,019			4,498
Reserves for uncertain tax positions	(241)			337			(104)
Share-based compensation	(5,820)			(6,832)			(4,187)
Non-deductible officers' compensation	5,485			2,507			1,267
Other, net	411			1,376			1,117
Provision for income taxes	$	45,335		$	36,121		$	22,129
Effective income tax rate	27.3		%	25.5		%	23.8		%

Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022, were as follows (in thousands):

	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	1,515	$	1,473
Allowance for doubtful accounts	4,876		4,682
Employee benefits and compensation	38,137		37,075
Lease costs	7,398		6,871
Other deferred tax assets	1,888		574
Total gross deferred tax assets	53,814		50,675
Less: valuation allowance	(2,721)		(3,156)
Total deferred tax assets, net	51,093		47,519
Deferred tax liabilities:
Goodwill and other intangibles	77,005		68,306
Property and equipment	836		1,185
Other deferred tax liabilities	2,539		2,791
Total gross deferred tax liabilities	80,380		72,282
Deferred income taxes, net	$	(29,287)	$	(24,763)

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

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2023		2022		2021
Balance at January 1	$	2,111	$	1,594	$	1,536
Additions for tax positions of the current year	178		175		161
Additions for positions of prior years	103		486		400
Settlements of prior year positions	—		—		(374)
Lapse of statutes of limitation	(545)		(144)		(129)
Balance at December 31	$	1,847	$	2,111	$	1,594