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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES A summary of the provision (benefit) for income taxes is as follows:
| Fiscal Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal |  |  |  |  |
Current | $ | — |  |  | $ | (951) |  |  | $ | (951) |
Deferred | 12,356 |  |  | (35,177) |  |  | (699) |
| 12,356 |  |  | (36,128) |  |  | (1,650) |
State |  |  |  |  |
Current | 1,873 |  |  | 435 |  |  | 321 |
Deferred | 2,717 |  |  | (17,111) |  |  | (545) |
| 4,590 |  |  | (16,676) |  |  | (224) |
Provision (benefit) for income taxes | $ | 16,946 |  |  | $ | (52,804) |  |  | $ | (1,874) |
On a periodic basis, we reassess the valuation allowance on our deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. In the fourth quarter of fiscal year 2020, we assessed the valuation allowance and considered positive evidence, including significant cumulative consolidated income over the three years ended December 31, 2020, revenue growth and expectations of future profitability, and negative evidence, including the impact of a negative change in the economic climate, significant risks and uncertainties in the business and restrictions on tax loss utilization in certain state jurisdictions. After assessing both the positive evidence and the negative evidence, we determined it was more likely than not that the majority of our deferred tax assets would be realized in the future and released the valuation allowance on the majority of our net operating loss carryforwards and other deferred tax assets as of December 31, 2020, resulting in a benefit from income taxes of $61,317. Following reassessment in fiscal year 2021, our judgement with regard to the realizability of our deferred tax assets remains consistent. As of December 31, 2021, we maintained a valuation allowance of $6,094 primarily related to deferred tax assets that would generate capital losses when realized and deferred tax assets related to certain state jurisdictions. In assessing the realizability of carryforwards and other deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. The change in the valuation allowance was a decrease of $388 for fiscal year 2021 and $61,317 for fiscal year 2020. In determining the need for a valuation allowance, we have assessed the available means of recovering deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, and available sources of future taxable income. We have also considered the ability to implement certain strategies, such as a potential sale of assets that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. During fiscal year 2020, we recognized a $(297) deferred tax benefit due to a reduction of the deferred tax liability related to indefinite lived assets. The financial statement value of indefinite lived goodwill was reduced as a result of a settlement of an acquisition contingency that pre-dated the effective date of ASC 805, which resulted in a reduction of the related deferred tax liability. During fiscal year 2019, we recognized a $(2,385) deferred tax benefit, due to a reduction of the valuation allowance on acquisitions. In determining the need for a valuation allowance, we assessed the available means of recovering deferred tax assets, including the existence of reversing temporary differences. The valuation allowance decreased due to the recognition of additional reversing temporary differences from the $2,385 deferred tax liability recorded through goodwill on the acquisition of a company in May 2019. The deferred tax liabilities related to the acquisition was based on the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The differences in the provision (benefit) for income taxes and the amounts determined by applying the Federal statutory rate to income before income taxes are as follows:
| Fiscal Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21 | % |  | 21 | % |  | 21 | %
Tax at statutory rate | $ | 12,190 |  |  | $ | 8,043 |  |  | $ | 6,254 |
State income taxes, net of federal benefit | 3,868 |  |  | 1,615 |  |  | 1,008 |
Change in valuation allowance | (388) |  |  | (61,317) |  |  | (4,420) |
Federal effect of change in state valuation allowance | 74 |  |  | 3,803 |  |  | — |
Non-deductible officer compensation | 1,338 |  |  | 487 |  |  | 1,359 |
Non-deductible expenses | 322 |  |  | 656 |  |  | 638 |
Deductible stock awards | (363) |  |  | (3,790) |  |  | (6,004) |
Tax credits | (153) |  |  | (130) |  |  | (82) |
Deferred tax adjustments | — |  |  | (2,047) |  |  | — |
Other, net | 58 |  |  | (124) |  |  | (627) |
Provision (benefit) for income taxes | $ | 16,946 |  |  | $ | (52,804) |  |  | $ | (1,874) |
Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. A summary of deferred tax assets and liabilities is as follows:
| December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accrued expenses and reserves | $ | 41,723 |  |  | $ | 35,444 |
Net operating loss carryforwards | 24,177 |  |  | 34,364 |
General business and state tax credit carryforwards | 7,617 |  |  | 8,044 |
Stock awards | 3,436 |  |  | 2,824 |
Unrealized loss on swaps | 1,461 |  |  | 3,798 |
Other | 2,264 |  |  | 2,307 |
Total deferred tax assets | 80,678 |  |  | 86,781 |
Less: valuation allowance | (6,094) |  |  | (6,482) |
Total deferred tax assets after valuation allowance | 74,584 |  |  | 80,299 |
Deferred tax liabilities: |  |  |
Amortization of intangibles | (18,042) |  |  | (18,044) |
Tax over book depreciation of property and equipment | (13,297) |  |  | (1,875) |
Other | (156) |  |  | (129) |
Total deferred tax liabilities | (31,495) |  |  | (20,048) |
Net deferred tax asset | $ | 43,089 |  |  | $ | 60,251 |
The net deferred tax asset at December 31, 2021 is reflected on the balance sheet as a long-term deferred federal and state tax asset of $43,957 and a long-term deferred state tax liability of $(868). As of December 31, 2021, we have, for federal income tax purposes, net operating loss carryforwards of approximately $52,384 that expire in the fiscal years ending December 31, 2032 through 2037 and $46,453, which do not expire. We have state net operating loss carryforwards of approximately $41,105 that expire in the fiscal years ending December 31, 2022 through 2041 or that do not expire in certain jurisdictions. In addition, we have $6,575 general business credit carryforwards which expire in the fiscal years ending December 31, 2022 through 2041 and $1,319 state credit carryforwards which expire in fiscal years ending December 31, 2038 through 2039. Sections 382 and 383 of the Internal Revenue Code can limit the amount of net operating loss and credit carryforwards which may be used in a tax year in the event of certain stock ownership changes. With the exception of $1,756 federal net operating losses we acquired through acquisitions, we are not currently subject to these limitations but could become subject to them if there were significant changes in the ownership of our stock. The provisions of FASB ASC 740-10-25-5 prescribe the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Additionally, FASB ASC 740-10-25-5 provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under FASB ASC 740-10-25-5, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued are reflected as a reduction of the overall income tax provision. As of December 31, 2021 and 2020, we did not have any uncertain tax positions. We are subject to U.S. federal income tax, as well as income tax of multiple state jurisdictions. Due to Federal and state net operating loss carryforwards, income tax returns from years ending in 1998 through 2021 remain open for examination, with limited exceptions.

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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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