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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Income Taxes 11.    Income Taxes

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

For the Years Ended December 31,

2024

2023

2022

Current

U.S. federal

$

85,802 

$

75,333 

$

52,910 

U.S. state and local

15,301 

9,983 

11,813 

Foreign

501 

569 

505 

Deferred

U.S. federal, state and local

(4,140)

(8,029)

14,821 

Foreign

2 

2 

6 

Total

$

97,466 

$

77,858 

$

80,055 

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

December 31,

2024

2023

Accrued liabilities

$

42,411 

$

39,436 

Lease liabilities

33,982 

34,028 

Stock compensation expense

11,229 

9,023 

Implicit price concessions

8,115 

7,294 

State net operating loss carryforwards

1,839 

1,652 

Other

1,214 

1,259 

Deferred income tax assets

98,790 

92,692 

Amortization of intangible assets

(42,754)

(40,747)

Accelerated tax depreciation

(29,814)

(32,411)

Right of use lease assets

(30,679)

(30,891)

Deposit with OAS

(11,413)

(11,413)

Currents assets

(4,244)

(4,272)

State income taxes

(2,042)

(2,552)

Market valuation of investments

(3,661)

(600)

Other

(128)

(127)

Deferred income tax liabilities

(124,735)

(123,013)

Net deferred income tax liabilities

$

(25,945)

$

(30,321)

At December 31, 2024 and 2023, state net operating loss carryforwards were $39.4 million and $36.0 million, respectively. These net operating losses will expire, in varying amounts, between 2025 and 2044. 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):

2024

2023

2022

Balance at January 1,

$

1,221 

$

1,313 

$

1,379 

Decrease due to expiration of statute of limitations

(207)

(355)

(422)

Unrecognized tax benefits due to positions taken in current year

695 

263 

356 

Balance at December 31,

$

1,709 

$

1,221 

$

1,313 

We file tax returns in the U.S. federal jurisdiction and various states. The years ended December 31, 2021 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, 2019. 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, 2024, and 2023, we have approximately $275,000 and $145,000, 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,

2024

2023

2022

Income tax provision calculated using the statutory rate of 21%

$

83,888 

$

73,577 

$

69,233 

State and local income taxes, less federal income tax effect

11,811 

2,306 

10,207 

Nondeductible expenses

7,438 

6,600 

6,958 

Excess stock compensation tax benefits

(4,442)

(4,330)

(5,928)

Other--net

(1,229)

(295)

(415)

Income tax provision

$

97,466 

$

77,858 

$

80,055 

Effective tax rate

24.4 

%

22.2 

%

24.3 

%

During the third quarter of 2023, the Company recognized a tax benefit from realignment of its state and local corporate tax structure based on the location of operating resources and profitability by business segment. This benefit includes a reduction in current state and local tax expense and a one-time benefit of $4.2 million in reduction of deferred tax liabilities reflecting the lower tax rates.

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

2024

$

98,728 

2023

$

73,876 

2022

$

65,894 

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 $8.0 million would be incurred based on current income tax rates.