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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes The components of income tax expense included in continuing operations were as follows for the years ended December 31:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 475,737 |  |  | $ | 66,017 |  |  | $ | 3,678 |
State |  |  | 84,967 |  |  |  | 11,998 |  |  |  | 6,274 |
|  |  | 560,704 |  |  |  | 78,015 |  |  |  | 9,952 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (33,803 | ) |  |  | 16,270 |  |  |  | 45,955 |
State |  |  | (770 | ) |  |  | 344 |  |  |  | 5,039 |
|  |  | (34,573 | ) |  |  | 16,614 |  |  |  | 50,994 |
Income tax expense |  | $ | 526,131 |  |  | $ | 94,629 |  |  | $ | 60,946 |
Temporary differences, which give rise to deferred tax assets and liabilities, were as follows as of December 31:
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Deferred tax assets related to: |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 31,828 |  |  | $ | 19,182 |
Insurance reserves |  |  | 32,080 |  |  |  | 16,582 |
Stock-based compensation expense |  |  | 5,008 |  |  |  | 3,549 |
Accounts receivable |  |  | 8,742 |  |  |  | 4,726 |
Inventories |  |  | 10,387 |  |  |  | 6,152 |
Operating loss and credit carryforwards |  |  | 18,356 |  |  |  | 10,812 |
Operating lease liabilities |  |  | 113,273 |  |  |  | 70,216 |
Other |  |  | 3,098 |  |  |  | 3,746 |
|  |  | 222,772 |  |  |  | 134,965 |
Valuation allowance |  |  | (2,573 | ) |  |  | (2,409 | )
Total deferred tax assets |  |  | 220,199 |  |  |  | 132,556 |
Deferred tax liabilities related to: |  |  |  |  |  |  |  |
Prepaid expenses |  |  | (8,960 | ) |  |  | (3,914 | )
Goodwill and other intangible assets |  |  | (307,165 | ) |  |  | (47,490 | )
Property, plant and equipment |  |  | (156,315 | ) |  |  | (57,353 | )
Operating lease right-of-use assets |  |  | (109,880 | ) |  |  | (68,641 | )
Total deferred tax liabilities |  |  | (582,320 | ) |  |  | (177,398 | )
Net deferred tax liability |  | $ | (362,121 | ) |  | $ | (44,842 | )
A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below for the years ended December 31:
|  | 2021 |  |  | 2020 |  |  | 2019 |  |
Statutory federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |
State income taxes, net of federal income tax |  |  | 3.2 |  |  |  | 3.7 |  |  |  | 2.8 |  |
Stock-based compensation windfall benefit |  |  | (0.4 | ) |  |  | (0.5 | ) |  |  | (0.8 | ) |
Permanent difference - 162(m) limitation |  |  | 0.3 |  |  |  | 0.5 |  |  |  | 0.4 |  |
Permanent difference - credits |  |  | (0.9 | ) |  |  | (1.7 | ) |  |  | (2.3 | ) |
Permanent difference - other |  |  | 0.2 |  |  |  | 0.3 |  |  |  | 0.7 |  |
Other |  | — |  |  |  | (0.1 | ) |  |  | (0.2 | ) |
|  |  | 23.4 | % |  |  | 23.2 | % |  |  | 21.6 | % |
We have $113.2 million of state net operating loss carryforwards and $1.3 million of state tax credit carryforwards expiring at various dates through 2035. We also have $63.2 million of federal net operating loss carryforwards expiring at various dates through 2034. We evaluate our deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with the Income Taxes topic of the Codification we assess whether it is more likely than not that some or all of our deferred tax assets will not be realized. Significant judgment is required in estimating valuation allowances for deferred tax assets and in making this determination, we consider all available positive and negative evidence and make certain assumptions. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in the applicable carryforward period. Changes in our estimates of future taxable income and tax planning strategies will affect our estimate of the realization of the tax benefits of these tax carryforwards. We base our estimate of deferred tax assets and liabilities on current tax laws and rates. In certain cases, we also base our estimate on business plan forecasts and other expectations about future outcomes. Changes in existing tax laws or rates could affect our actual tax results, and future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, as well as the residential homebuilding industry’s cyclicality and sensitivity to changes in economic conditions, it is possible that actual results could differ from the estimates used in previous analyses. The balance for uncertain tax positions, excluding penalties and interest, was $14.5 million and $9.2 million as of December 31, 2021 and 2020, respectively, with $5.3 million and $7.2 million recorded in the Company’s consolidated statement of operations for the years ended December 31, 2021 and 2020, and with no significant amounts recorded in the year ended December 31, 2019. We accrue interest and penalties on our uncertain tax positions as a component of our provision for income taxes. We accrued no significant interest and penalties in 2021, 2020 or 2019. We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Based on completed examinations and the expiration of statutes of limitations, we have concluded all U.S. federal income tax matters for years through 2014. We are currently under IRS audit for various aspects of our 2015, 2016, 2017 and 2019 tax years. We report income-based tax in 41 states with various years open to examination.

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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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