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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes |
13. | INCOME TAXES
Provision for Income Taxes The Company and its subsidiaries are based in the U.S. and file federal and various state income tax returns. The components of the provision for income taxes were as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Current tax expense | $ | 3,032 |  |  | $ | 1,182 |  |  | $ | 288 |
Deferred tax (benefit) expense | 19,439 |  |  | (27,398) |  |  | 1,450 |
Income tax (benefit) expense | $ | 22,471 |  |  | $ | (26,216) |  |  | $ | 1,738 |
Due to the net operating loss carryforwards, the Company expects no cash payments for federal tax income taxes for expense for 2020 and 2019. The Company makes cash payments for state income taxes in states in which the Company does not have net operating loss carry forwards. Effective Tax Rate The items comprising the difference between income taxes computed at the U.S. federal statutory rates in effect for 2020, 2019 and 2018 and our effective tax rates were as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax expense at the U.S. federal statutory rate | $ | 13,729 |  |  | 21.0 | % |  | $ | 3,041 |  |  | 21.0 | % |  | $ | 6,568 |  |  | 21.0 | %
State income taxes, net of federal benefits | 5,149 |  |  | 7.9 | % |  | 1,670 |  |  | 11.5 | % |  | 364 |  |  | 1.2 | %
Taxes on subsidiaries’ and joint ventures’ earnings allocated to noncontrolling interests owners | (141) |  |  | (0.2) | % |  | (2,241) |  |  | (15.5) | % |  | (4,097) |  |  | (13.1) | %
Valuation allowance | — |  |  | — | % |  | (29,375) |  |  | (202.9) | % |  | (1,013) |  |  | (3.2) | %
Executive compensation, including stock incentives | 1,881 |  |  | 2.9 | % |  | 805 |  |  | 5.6 | % |  | 26 |  |  | 0.1 | %
Other permanent differences | 1,853 |  |  | 2.8 | % |  | (116) |  |  | (0.8) | % |  | (110) |  |  | (0.4) | %
Income tax (benefit) expense | $ | 22,471 |  |  | 34.4 | % |  | $ | (26,216) |  |  | (181.1) | % |  | $ | 1,738 |  |  | 5.6 | %
The 2020 effective income tax rate varied from the statutory rate primarily as a result of state income taxes, nondeductible compensation and other permanent differences. The decrease from the U.S. federal statutory rate in 2019 was primarily a result of the reversal of the valuation allowance on our net deferred tax assets. The 2018 effective income tax rate varied from the statutory rate primarily as a result of a change in the valuation allowance on our net deferred tax assets exclusive of deferred tax liabilities on indefinite lived assets and net income attributable to noncontrolling interest owners, which is taxable to those owners rather than the Company. Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities were as follows:
| Long Term
| As of December 31,
| 2020 |  | 2019
Assets related to: |  |  |
Accrued compensation and other | $ | 4,743 |  |  | $ | 3,981 |
Noncontrolling interests | 1,860 |  |  | 1,812 |
Deferred revenue | — |  |  | 922 |
Members interest liabilities | 9,131 |  |  | 11,328 |
Right of use liabilities | 3,687 |  |  | 3,253 |
Derivative Liability | 1,557 |  |  | — |
Deferred Payments | 2,223 |  |  | — |
Net operating loss carryforwards | 14,316 |  |  | 19,801 |
Total deferred tax assets | 37,517 |  |  | 41,097 |
Liabilities related to: |  |  |
Depreciation of property and equipment | (16,490) |  |  | (7,911) |
Right of use assets | (3,680) |  |  | (3,232) |
Amortization of tax basis goodwill | (7,099) |  |  | (3,091) |
Other | (2,431) |  |  | (851) |
Total deferred tax liabilities | $ | (29,700) |  |  | $ | (15,085) |
Net total deferred tax asset | $ | 7,817 |  |  | $ | 26,012 |
Net Operating Loss—At December 31, 2020 the Company had federal and state net operating loss (“NOL”) carryforwards of $58,719 and $36,381, respectively, which expire at various dates in the next 18 years for U.S. federal income tax and in the next 8 to 18 years for the various state jurisdictions where we operate. Such NOL carryforwards expire beginning in 2028 through 2039. Valuation Allowance—The Company performs an analysis at the end of each reporting period to determine whether it is more likely than not deferred tax assets will be realized in future years. In performing its assessments in prior periods, a full valuation allowance was recorded as a result of objective negative evidence which included historical losses from 2013 to 2016 and the first quarter of 2017 and associated limits on ability to consider other subjective evidence such as projections for future growth. During 2019, the Company achieved eleven of the last twelve consecutive quarters of pre-tax income and is projecting sufficient future taxable income to be available to utilize all NOLs prior to their expiration. Deferred tax liabilities were a consideration in the analysis of whether to apply a valuation allowance because taxable temporary differences may be used as a source of taxable income to support the realization of deferred tax assets. A deferred tax liability that relates to an asset with an indefinite life, such as goodwill, may not be considered a source of income and should not be netted against deferred tax assets for valuation allowance purposes. As a result of this analysis, the Company believed that there was sufficient positive evidence that outweighed any negative evidence and therefore released the full valuation allowance in the fourth quarter of 2019. Uncertain Tax Positions As a result of the Company’s analysis, management has determined that the Company does not have any material uncertain tax positions. The Company’s U.S. federal income tax returns for 2018 and later years are open and subject to examination by the I.R.S. In addition, the Company’s state income tax returns for 2017 and later years are open and subject to examination. Additionally, federal and state NOLs may be adjusted by the taxing authorities for the 2013 and later tax years.

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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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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