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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

			Year Ended December 31,
(in millions)			2022			2021			2020
Current:
Federal			$	112		$	86		$	96
State			36			28			30
Foreign			—			1			1
Total Current			148			115			127
Deferred:
Federal			(17)			(7)			(33)
State			(6)			(3)			(9)
Foreign			2			(2)			—
Total Deferred			(21)			(12)			(42)
Total			$	127		$	103		$	85

U.S. Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate

The U.S. federal statutory income tax rate reconciled to our effective tax rate is as follows:

			Year Ended December 31,
			2022									2021									2020
(in millions, except percent)			Pre-Tax Income			Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income			Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income			Tax Expense/(Benefit)			Percent of Pre-Tax Income (Loss)
			$	482								$	441								$	357
U.S. federal statutory tax rate						$	101		21		%				$	93		21		%				$	75		21		%
State income taxes, net of federal benefit						34			7						32			7						25			7
Tax rate change						—			—						(1)			—						—			—
Nondeductible meals, entertainment and penalties						3			1						2			—						—			—
Stock based compensation						3			1						(2)			—						(2)			—
Uncertain tax positions						—			—						(1)			—						1			—
Tax credits						(8)			(2)						(7)			(2)						(6)			(2)
State and tax return to provision adjustments						(9)			(2)						(10)			(2)						(7)			(2)
Other						3			—						(3)			(1)						(1)			—
Total						$	127		26		%				$	103		23		%				$	85		24		%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows:

			Year Ended December 31,
(in millions)			2022			2021
Deferred tax assets:
Net operating losses (federal and state)			$	7		$	3
Accrued expenses			17			20
Accrued workers' compensation costs			8			9
Recovery credit			20			13
Operating lease liabilities			14			13
Stock based compensation			3			3
Tax benefits relating to uncertain positions			1			1
Tax credits (federal, state and foreign)			7			6
Section 174 Capitalized R&D			13			—
Other			3			—
Total			93			68
Valuation allowance			(8)			(5)
Total deferred tax assets			85			63
Deferred tax liabilities:
Depreciation and amortization			(54)			(37)
Prepaid commission expenses			(24)			(24)
Operating lease right-of-use assets			(10)			(10)
Other			—			(1)
Total deferred tax liabilities			(88)			(72)
Net deferred tax liabilities			$	(3)		$	(9)

Reconciliation of Beginning and Ending Valuation Allowance

A reconciliation of the beginning and ending amount of the valuation allowance is presented in the table below:

			Year Ended December 31,
(in millions)			2022			2021			2020
Valuation allowance at January 1			$	5		$	5		$	5
Charged to net income			3			—			—
Valuation allowance at December 31			8			5			5

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) related to uncertain income tax provisions, which would affect the effective tax rate if recognized, is presented in the table below:

			Year Ended December 31,
(in millions)			2022			2021			2020
Unrecognized tax benefits at January 1			$	7		$	8		$	7
Additions for tax positions of prior periods			—			—			1
Additions for tax positions of current period			2			1			1
Reductions for tax positions of prior period:
Settlements with taxing authorities			—			—			(1)
Lapse of applicable statute of limitations			(2)			(1)			—
Adjustments to tax positions			—			(1)			—
Unrecognized tax benefits at December 31			$	7		$	7		$	8

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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