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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
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,
202420232022
Current tax expense$54,841 $33,024 $9,221 
Deferred tax expense32,519 14,746 32,486 
Income tax expense$87,360 $47,770 $41,707 
Effective Tax Rate
The items comprising the difference between income taxes computed at the U.S. federal statutory rates in effect for 2024, 2023 and 2022 and our effective tax rates were as follows:
Years Ended December 31,
202420232022
Amount%Amount%Amount%
Tax expense at the U.S. federal statutory rate$75,238 21.0 %$40,029 21.0 %$29,435 21.0 %
State income taxes, net of federal benefits13,927 3.9 %8,374 4.4 %11,064 7.9 %
Taxes on subsidiaries’ and joint ventures’ earnings allocated to noncontrolling interests owners(2,826)(0.8)%(880)(0.5)%(366)(0.3)%
Executive compensation including stock incentives3,579 1.0 %1,652 0.9 %1,717 1.2 %
Excess tax benefits from equity awards
(5,678)(1.6)%(1,644)(0.9)%(351)(0.3)%
Gain on deconsolidation of subsidiary1,905 0.5 %— — %— — %
Other permanent differences1,215 0.3 %239 0.1 %208 0.1 %
Income tax expense$87,360 24.4 %$47,770 25.1 %$41,707 29.8 %
The 2024, 2023 and 2022 effective income tax rate varied from the statutory rate primarily as a result of state income taxes, nondeductible compensation, gain on the deconsolidation of subsidiary and other permanent differences.
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
Long Term
As of December 31,
Assets related to:20242023
Accrued compensation and other$4,155 $3,780 
Noncontrolling interests— 3,179 
Members interest liabilities— 4,676 
Right of use liabilities13,091 14,213 
Net operating loss carryforwards957 1,025 
Total deferred tax assets18,203 26,873 
Liabilities related to:
Depreciation of property and equipment(47,583)(49,311)
Right of use assets(13,027)(14,189)
Amortization of tax basis goodwill(20,351)(20,256)
Investment in unconsolidated subsidiary
(25,903)— 
Amortization of intangibles(20,518)(18,929)
Other(181)(952)
Total deferred tax liabilities(127,563)(103,637)
Net total deferred tax liability
$(109,360)$(76,764)
Net Operating Loss—At December 31, 2024 the Company had federal and state net operating loss (“NOL”) carryforwards of $255 and $13,050, respectively. Federal NOLs have expiration dates between 2034 and 2036. The Company has $28 of federal NOLs that do not expire. State NOLs have expiration dates between 2028 and 2038.
Uncertain Tax Positions
The Company's U.S. federal and state income tax returns for 2021 and later 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.
The Company has an Uncertain Tax Position (“UTP”) liability of $6,733 and an additional liability related to the UTP for penalties of $1,346 and interest of $1,109 at December 31, 2024. We recognize interest and penalties related to the UTP as administrative expense. The UTP, including penalties and interest, are fully offset by an indemnification receivable at December 31, 2024. The Company estimates that approximately $1,519 of the recorded UTP may be recognized by the end of 2025, with no material impact to the Consolidated Statement of Operations due to the associated indemnification receivable. As of December 31, 2022, the Company did not have any material UTP’s.