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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes [Abstract]  
Income Taxes 11.    Income Taxes

The provision for income taxes comprises the following (in thousands):

For the Years Ended December 31,

2022

2021

2020

Current

U.S. federal

$

52,910 

$

64,620 

$

58,602 

U.S. state and local

11,813 

14,233 

15,950 

Foreign

505 

511 

539 

Deferred

U.S. federal, state and local

14,821 

2,358 

1,456 

Foreign

6 

42 

(23)

Total

$

80,055 

$

81,764 

$

76,524 

A summary of the temporary differences that give rise to deferred tax assets/ (liabilities) follows (in thousands):

December 31,

2022

2021

Lease liabilities

$

39,057 

$

35,936 

Accrued liabilities

38,620 

42,840 

Stock compensation expense

9,102 

6,976 

Implicit price concessions

7,572 

7,744 

State net operating loss carryforwards

1,443 

1,920 

Other

1,330 

920 

Deferred income tax assets

97,124 

96,336 

Amortization of intangible assets

(43,205)

(41,925)

Accelerated tax depreciation

(36,519)

(35,416)

Right of use lease assets

(35,514)

(32,489)

Deposit with OAS

(12,769)

-

Currents assets

(5,064)

(3,858)

State income taxes

(2,634)

(2,504)

Market valuation of investments

102 

(3,189)

Other

(134)

(138)

Deferred income tax liabilities

(135,737)

(119,519)

Net deferred income tax liabilities

$

(38,613)

$

(23,183)

At December 31, 2022 and 2021, state net operating loss carryforwards were $41.9 million and $43.9 million, respectively. These net operating losses will expire, in varying amounts, between 2023 and 2042. Based on our history of operating earnings, we

have determined that our operating income will, more likely than not, be sufficient to ensure realization of our deferred income tax assets.

A reconciliation of the beginning and ending of year amount of our unrecognized tax benefit is as follows (in thousands):

2022

2021

2020

Balance at January 1,

$

1,379 

$

1,304 

$

1,323 

Decrease due to expiration of statute of limitations

(422)

(258)

(219)

Unrecognized tax benefits due to positions taken in current year

356 

333 

200 

Balance at December 31,

$

1,313 

$

1,379 

$

1,304 

We file tax returns in the U.S. federal jurisdiction and various states. The years ended December 31, 2019 and forward remain open for review for federal income tax purposes. The earliest open year relating to any of our major state jurisdictions is the fiscal year ended December 31, 2017. During the next twelve months, we do not anticipate a material net change in unrecognized tax benefits.

We classify interest related to our accrual for uncertain tax positions in separate interest accounts. As of December 31, 2022, and 2021, we have approximately $112,000 and $131,000, respectively, accrued in interest payable related to uncertain tax positions. These accruals are included in other current liabilities in the accompanying consolidated balance sheet. Net interest expense related to uncertain tax positions included in interest expense in the accompanying consolidated statement of income is not material.

The difference between the actual income tax provision for continuing operations and the income tax provision calculated at the statutory U.S. federal tax rate is explained as follows (in thousands):

For the Years Ended December 31,

2022

2021

2020

Income tax provision calculated using the statutory rate of 21%

$

69,233 

$

73,566 

$

83,158 

State and local income taxes, less federal income tax effect

10,207 

10,025 

13,855 

Nondeductible expenses

6,958 

7,443 

5,377 

Excess stock compensation tax benefits

(5,928)

(9,884)

(26,089)

Other--net

(415)

614 

223 

Income tax provision

$

80,055 

$

81,764 

$

76,524 

Effective tax rate

24.3 

%

23.3 

%

19.3 

%

Summarized below are the total amounts of income taxes paid during the years ended December 31 (in thousands):

2022

$

65,894 

2021

99,430 

2020

61,517 

Provision has not been made for additional taxes on $35.1 million of undistributed earnings of our domestic subsidiaries. Should we elect to sell our interest in these businesses rather than to affect a tax-free liquidation, additional taxes amounting to approximately $8.4 million would be incurred based on current income tax rates.


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