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INCOME TAX | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAX | INCOME TAX Income tax (benefit) provision on income from operations consists of the following:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 7,591 |  |  | $ | (10,538) |  |  | $ | 12,814 |
State | 3,203 |  |  | (1,304) |  |  | 6,585 |
| 10,794 |  |  | (11,842) |  |  | 19,399 |
Deferred | (13,271) |  |  | (7,936) |  |  | (6,088) |
| $ | (2,477) |  |  | $ | (19,778) |  |  | $ | 13,311 |
Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal income tax expense at statutory rate | $ | 33,386 |  |  | $ | 36,759 |  |  | $ | 33,566 |
State income tax, net of federal income tax benefit | 5,594 |  |  | 6,677 |  |  | 6,999 |
Net operating loss carryback | 3,391 |  |  | (3,445) |  |  | — |
Excess tax benefits of share-based compensation | (47,675) |  |  | (60,190) |  |  | (29,819) |
Tax credits | (4,999) |  |  | (3,867) |  |  | (3,446) |
Non-deductible business expenses | 7,542 |  |  | 4,199 |  |  | 6,011 |
Other, net | 284 |  |  | 89 |  |  | — |
| $ | (2,477) |  |  | $ | (19,778) |  |  | $ | 13,311 |
The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are:
| 2021 |  | 2020
Deferred income tax assets: |  |  |
Operating expenses not currently deductible | $ | 16,639 |  |  | $ | 9,084 |
Stock option and other employee benefit plans | 19,596 |  |  | 17,446 |
Loss and credit carryforwards | 18,604 |  |  | 27,199 |
Deferred revenue | 4,717 |  |  | 807 |
Total deferred income tax assets | 59,556 |  |  | 54,536 |
Valuation allowance | — |  |  | (1,490) |
Total deferred income tax assets, net of valuation allowance | 59,556 |  |  | 53,046 |
Deferred income tax liabilities: |  |  |
Intangible assets | (266,827) |  |  | (76,766) |
Property and equipment | (12,272) |  |  | (9,918) |
Prepaid expenses | (8,542) |  |  | (6,869) |
Total deferred income tax liabilities | (287,641) |  |  | (93,553) |
Net deferred income tax liabilities | $ | (228,085) |  |  | $ | (40,507) |
As of December 31, 2021, we had federal net operating loss carryforwards of approximately $39.1 million, after-tax state net operating loss carryforwards of approximately $2.5 million, and tax credit carryforwards of approximately $9.8 million. The federal net operating loss carryforward will begin to expire in 2032, if not utilized, and a portion of the state net operating loss and tax credit carryforwards begin expiring in 2022, if not utilized. The acquired carryforwards are subject to an annual limitation but are expected to be realized. The valuation allowance disclosed in the table above was released in the current year as we determined that it is more likely than not that all deferred tax assets will be realized. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of reversing taxable temporary differences are revised. The following table provides a reconciliation of the gross unrecognized tax benefits from uncertain tax positions for the years ended December 31:
|  | 2021 |  | 2020 |  | 2019
Balance at beginning of year |  | $ | 1,929 |  |  | $ | 1,929 |  |  | $ | 1,929 |
Additions for tax positions of prior years |  | 4,508 |  |  | — |  |  | — |
Reductions for tax positions of prior years |  | (10) |  |  | — |  |  | — |
Additions for tax positions of current year |  | 212 |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Expiration of statutes of limitations |  | (2,004) |  |  | — |  |  | — |
Balance at end of year |  | $ | 4,635 |  |  | $ | 1,929 |  |  | $ | 1,929 |
As of December 31, 2021, $1.9 million of the unrecognized tax benefits are reflected as a decrease in deferred income taxes and $2.7 million are included in other long-term liabilities in our consolidated balance sheets. The total amount of unrecognized tax benefits, net of federal income tax benefit of state taxes, if recognized, that would affect the effective tax rate is $4.3 million as of December 31, 2021 and $1.9 million as of December 31, 2020 and 2019, respectively. It is reasonably possible that events will occur during the next 12 months that would cause the total amount of unrecognized tax benefits to increase or decrease. However, we do not expect such increases or decreases to be material to the financial condition or results of operations. We are subject to U.S. federal income tax, as well as income tax of multiple state, local and foreign jurisdictions. We are routinely subject to income tax examinations by these taxing jurisdictions, but we do not have a history of, nor do we expect, any material adjustments as a result of these examinations. With few exceptions, major U.S. federal, state, local and foreign jurisdictions are no longer subject to examination for years before 2017. As of February 23, 2022, no significant adjustments have been proposed by any taxing jurisdiction. We recognize interest and penalties related to uncertain tax positions as a component of income tax expense in the consolidated statements of income. Accrued interest and penalty amounts were not significant at December 31, 2021. We paid income taxes, net of refunds received, of $2.2 million in 2021, $3.3 million in 2020, and $21.3 million in 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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