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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The provision for income taxes is comprised of (in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 27,011 |  |  | $ | 33,495 |  |  | $ | 14,850 |
State | 10,139 |  |  | 8,918 |  |  | 4,127 |
| 37,150 |  |  | 42,413 |  |  | 18,977 |
Deferred: |  |  |  |  |
Federal | (437) |  |  | (7,177) |  |  | 4,585 |
State | (1) |  |  | (1,298) |  |  | 884 |
| (438) |  |  | (8,475) |  |  | 5,469 |
Total tax expense | $ | 36,712 |  |  | $ | 33,938 |  |  | $ | 24,446 |
The reconciliation between our effective tax rate on net income and the federal statutory rate is as follows (dollars in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Income tax at federal statutory rate | $ | 32,650 |  |  | 21.0 | % |  | $ | 27,547 |  |  | 21.0 | % |  | $ | 19,447 |  |  | 21.0 | %
Stock compensation | (1,567) |  |  | (1.0) | % |  | 331 |  |  | 0.3 | % |  | (255) |  |  | (0.3) | %
Other permanent items | 1,274 |  |  | 0.8 | % |  | 424 |  |  | 0.3 | % |  | 737 |  |  | 0.8 | %
Change in valuation allowance | (922) |  |  | (0.6) | % |  | (207) |  |  | (0.2) | % |  | 276 |  |  | 0.3 | %
Change in uncertain tax positions | (2,867) |  |  | (1.8) | % |  | 65 |  |  | 0.1 | % |  | 67 |  |  | 0.1 | %
State income taxes, net of federal benefit | 8,144 |  |  | 5.2 | % |  | 5,778 |  |  | 4.4 | % |  | 4,174 |  |  | 4.5 | %
Total tax expense | $ | 36,712 |  |  | 23.6 | % |  | $ | 33,938 |  |  | 25.9 | % |  | $ | 24,446 |  |  | 26.4 | %
Components of the net deferred tax asset or liability are as follows (in thousands):
| As of December 31,
| 2021 |  | 2020
Deferred Tax Assets |  |  |
Long-term |  |  |
Accrued liabilities and allowances | $ | 10,200 |  |  | $ | 9,106 |
Allowance for doubtful accounts | 979 |  | 987
Inventories | 900 |  | 402
Property and equipment | 333 |  | 280 |
Intangibles | 7,042 |  | 6,582
Net operating loss carryforwards | 1,049 |  | 1,206
Other | 14 |  | 16
Long-term deferred tax assets | 20,517 |  | 18,579
Less: Valuation allowance | (216) |  | (1,263)
Net deferred tax assets | 20,301 |  | 17,316
Deferred Tax Liabilities |  |  |
Long-term |  |  |
Accrued liabilities and allowances | (669) |  | (151)
Property and equipment | (7,629) |  | (4,587)
Intangibles | (6,783) |  | (4,810)
Investment in partnership | (8,271) |  | (6,660)
Other | (793) |  | (650)
Long-term deferred tax liabilities | (24,145) |  | (16,858)
Net deferred tax (liabilities) assets | $ | (3,844) |  |  | $ | 458 |
The above amounts are included in our Consolidated Balance Sheets as follows: |  |  |
Other non-current assets | 975 |  |  | 493 |
Long-term deferred income tax liabilities | (4,819) |  |  | (35) |
Net deferred tax (liabilities) assets | $ | (3,844) |  |  | $ | 458 |
As of December 31, 2021, we had a deferred tax asset balance of $1.0 million reflecting the benefit of $4.8 million in federal and state income tax net operating loss (NOL) carryforwards, the earliest of which expires in 2030. Valuation Allowance We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets on a jurisdiction and by tax filing entity basis. A significant piece of objective negative evidence evaluated is cumulative losses incurred over the most recent three-year period. Such objective evidence limits our ability to consider other subjective positive evidence such as our projections for future growth. Based on this evaluation, a valuation allowance has been recorded as of December 31, 2021 and 2020 for the net deferred tax assets recorded on certain of our wholly owned subsidiaries. Such deferred tax assets relate primarily to net operating losses that are not more likely than not realizable. However, the amount of the deferred tax asset considered realizable could be adjusted if our estimate of future taxable income during the carryforward period changes, or if objective negative evidence in the form of cumulative losses is no longer present. Additional weight may be given to subjective evidence such as our projections for growth in this situation. Uncertain Tax Positions We are subject to taxation in the United States and various state jurisdictions. As of December 31, 2021, our tax years for 2018 through 2020 are subject to examination by the tax authorities. A rollforward of the gross unrecognized tax benefits is as follows (in thousands):
Unrecognized tax benefit, January 1, 2019 | $ | 5,349 |
Increase as a result of tax positions taken during the period | 2,866
Decrease as a result of tax positions taken during the period | (2,482)
Decrease as a result of expiring statutes | (16)
Unrecognized tax benefit, December 31, 2019 | $ | 5,717 |
Increase as a result of tax positions taken during the period | 3,822
Decrease as a result of tax positions taken during the period | (2,873)
Increase as a result of expiring statutes | 10
Unrecognized tax benefit, December 31, 2020 | $ | 6,676 |
Increase as a result of tax positions taken during the period | 4,482
Decrease as a result of tax positions taken during the period | (3,999)
Decrease as a result of expiring statutes | (2,857)
Unrecognized tax benefit, December 31, 2021 | $ | 4,302 |
No unrecognized tax positions would affect the effective tax rate at December 31, 2021. Interest expense and penalties accrued related to uncertain tax positions as of December 31, 2021 are $0.5 million. We expect a decrease to the amount of unrecognized tax benefits (exclusive of penalties and interest) within the next twelve months of zero to $2.4 million. Determining uncertain tax positions and the related estimated amounts requires judgment and carry estimation risk. If future tax law changes or interpretations should come to light, or additional information should become known, our conclusions regarding unrecognized tax benefits may change.

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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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