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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes:
The significant components of the Provision for income tax expense related to continuing operations are as follows (in millions):
 For the Year Ended December 31,
 202320222021
Current:   
Federal$101.7 $58.7 $63.7 
State and other26.6 13.5 20.8 
Total current expense128.3 72.2 84.5 
Deferred:   
Federal(0.7)17.9 14.4 
State and other4.6 10.0 3.0 
Total deferred expense3.9 27.9 17.4 
Total income tax expense related to continuing operations$132.2 $100.1 $101.9 
A reconciliation of differences between the federal income tax at statutory rates and our actual income tax expense on our income from continuing operations, which include federal, state, and other income taxes, is presented below:
 For the Year Ended December 31,
 202320222021
Tax expense at statutory rate21.0 %21.0 %21.0 %
Increase (decrease) in tax rate resulting from:   
State and other income taxes, net of federal tax benefit4.1 %4.0 %4.0 %
Increase (decrease) in valuation allowance0.3 %0.6 %(0.6)%
Noncontrolling interests(4.0)%(4.4)%(4.3)%
Share-based windfall tax benefits— %— %(0.6)%
Other, net0.4 %1.0 %0.7 %
Income tax expense21.8 %22.2 %20.2 %
The Provision for income tax expense in 2023 and 2022 was greater than the federal statutory rate primarily due to state and other income tax expense and a gross increase in valuation allowance, offset by the impact of noncontrolling interests. The Provision for income tax expense in 2021 was less than the federal statutory rate primarily due to the impact of noncontrolling interests, the decrease in valuation allowance and share-based windfall tax benefits, offset by state and other income tax expense. See Note 1, Summary of Significant Accounting Policies, “Income Taxes,” for a discussion of the allocation of income or loss related to pass-through entities, which is referred to as the impact of noncontrolling interests in this discussion.
The Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) included provisions relating to net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, technical corrections to tax depreciation methods for qualified improvement property and deferral of employer payroll taxes. The CARES Act did not materially impact our effective tax rate for the years ended December 31, 2023, 2022, and 2021, although it impacted the timing of cash payments for taxes.
Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes and the impact of available NOLs. The significant components of our deferred tax assets and liabilities are presented in the following table (in millions):
 As of December 31,
 20232022
Deferred income tax assets:  
Net operating loss$23.1 $36.9 
Insurance reserve20.1 19.1 
Stock-based compensation21.4 16.1 
Revenue reserves7.6 — 
Operating lease liabilities8.8 6.6 
Other accruals26.2 24.8 
Tax credits14.6 12.4 
Total deferred income tax assets121.8 115.9 
Less: Valuation allowance(28.4)(35.8)
Net deferred income tax assets93.4 80.1 
Deferred income tax liabilities:  
Intangibles(62.6)(61.2)
Operating lease right-of-use assets(7.8)(5.5)
Property, net(18.1)(15.9)
Carrying value of partnerships(91.7)(80.2)
Other(0.2)(0.3)
Total deferred income tax liabilities(180.4)(163.1)
Net deferred income tax liabilities$(87.0)$(83.0)
We have state NOLs of $21.7 million that expire in various amounts at varying times through 2034. For the years ended December 31, 2023 and 2022, the net decrease in our valuation allowance was $7.4 million and $7.3 million, respectively. The decrease in our valuation allowance in 2023 and 2022 related primarily to the expiration of state NOLs.
As of December 31, 2023, we have a remaining valuation allowance of $28.4 million. This valuation allowance remains recorded primarily due to unusable foreign tax credits generated by our operations in Puerto Rico. We determined it was necessary to maintain a valuation allowance on our foreign tax credits due to uncertainties related to our ability to utilize a portion of these credits before they expire. The amount of the valuation allowance has been determined based on the weight of all available evidence, as described above, including management’s estimates of taxable income over the periods in which the related deferred tax assets will be recoverable.
Our continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. Interest recorded as part of our income tax provision during 2023, 2022, and 2021 was not material. Accrued interest income related to income taxes as of December 31, 2023 and 2022 was not material.
In December 2016, we signed an agreement with the IRS to participate in their Compliance Assurance Process (“CAP”) for the 2017 tax year and have renewed this agreement each year since. CAP is a program in which we and the IRS
endeavor to agree on the treatment of significant tax positions prior to the filing of our federal income tax returns. In June 2023, the IRS issued a no change letter effectively closing our 2021 tax year audit. Thus, the statute of limitations has expired, or we have settled, federal income tax examinations with the IRS for all tax years through 2021.
The IRS is currently examining the 2022 tax year. For tax year 2023, we were accepted into CAP under the new “Bridge Phase” of the program. The Bridge Phase is essentially a suspension of IRS review of our books and records for the tax year. Per the IRS, the Bridge Phase is reserved for taxpayers whose risk of noncompliance does not support the continued use of IRS resources. Generally, these are taxpayers who have few, if any, material issues, are expected to receive a Full Acceptance Letter in their most recent CAP program phase, and continue to satisfy the CAP eligibility and suitability requirements. In February 2024, the IRS offered, and we accepted, admission into the IRS Bridge Plus Pilot program for the years 2023 and 2024. Under this program, we are required to provide additional documentation (including a draft return) to the IRS prior to filing our return. The IRS performs a risk assessment review of this documentation and provides recommendations to us. We then file our return and submit a post-filing representation that our return was filed consistent with the documentation provided and the IRS recommendations (if any). After further review, the IRS then issues either a full or partial acceptance letter. Our state income tax returns are also periodically examined by various regulatory taxing authorities. We are not currently under audit by any state.
For the tax years that remain open under the applicable statutes of limitations, management considered potential unrecognized tax benefits and determined there are no material unrecognized tax benefits that would impact prior years’ income taxes.