Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Components of Income (Loss) from Continuing Operations before Provision for Income Taxes
The components of income from continuing operations before provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
2022 2021 2020
United States $ 143,815  $ 193,147  $ 62,206 
Foreign (1,786) 156  (2,842)
$ 142,029  $ 193,303  $ 59,364 
Schedule of Provision (Benefit) for Income Taxes
The provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
2022 2021 2020
Federal:
Current $ 34,968  $ 48,785  $ 12,437 
Deferred (4,973) (9,600) 310 
29,995  39,185  12,747 
State:
Current 8,857  13,903  3,616 
Deferred (1,100) (2,243) 163 
7,757  11,660  3,779 
Foreign:
Current —  —  — 
Deferred 52  (12) — 
52  (12) — 
$ 37,804  $ 50,833  $ 16,526 
Significant Components of Deferred Tax Assets (Liabilities), Net
Significant components of the Company’s deferred tax assets, net consisted of the following (in thousands):
December 31,
2022 2021
Deferred Tax Assets:    
Accrued expenses and bonuses $ 6,406  $ 6,822 
Bad debt and other reserves 9,655  6,989 
Deferred compensation 21,018  18,287 
Operating lease ROU assets, net 20,798  20,937 
Stock-based compensation 7,273  7,031 
Net operating and capital loss carryforwards 3,835  3,769 
State taxes —  92 
Other comprehensive income (loss) 1,676  — 
Amortizable intangibles and other 2,221  1,577 
Deferred tax assets before valuation allowance 72,882  65,504 
Valuation allowance (4,935) (4,599)
Deferred Tax Assets 67,947  60,905 
Deferred Tax Liabilities:    
Fixed assets (5,715) (6,552)
Operating lease liabilities (18,523) (18,697)
Prepaid expenses (1,180) (1,513)
State taxes (472) — 
Other comprehensive income (loss) —  (195)
Goodwill and other (736) (212)
Deferred Tax Liabilities (26,626) (27,169)
Deferred Tax Assets, Net $ 41,321  $ 33,736 
Components of Provision for Income Taxes and Income before Provision for Income Taxes
The provision for income taxes differs from the amount computed by applying the statutory federal corporate income tax rate to income before provision for income taxes and consisted of the following (dollars in thousands):
Years Ended December 31,
2022 2021 2020
Amount
Rate
Amount
Rate
Amount
Rate
Income tax expense at the federal statutory rate $ 29,826  21.0  % $ 40,594  21.0  % $ 12,466  21.0  %
State income tax expense, net of federal benefit 6,127  4.3  % 9,210  4.8  % 2,983  5.0  %
(Windfall) shortfall tax benefits, net related to stock-based compensation (2,714) (1.9) % (555) (0.3) % 240  0.4  %
Change in valuation allowance 337  0.2  % 179  0.1  % 497  0.8  %
Permanent and other items (1)
4,228  3.0  % 1,405  0.7  % 340  0.6  %
  $ 37,804  26.6  % $ 50,833  26.3  % $ 16,526  27.8  %
(1)Permanent items relate principally to compensation charges, qualified transportation fringe benefits, reversal of uncertain tax positions and meals and entertainment.
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following (in thousands):
Years Ended December 31,
2022 2021 2020
Beginning balance $ 304  $ 55  $ 775 
Gross increases/ (decreases) as a result of positions taken:      
Prior periods (304) 1  — 
Current period —  304  — 
Expiration of applicable statutes of limitation —  (56) (720)
Ending balance $ —  $ 304  $ 55