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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes by geographic area was, for the years ended December 31:
(in thousands) |  | 2021 |  | 2020 |  | 2019
Federal |  | $ | 106,956 |  |  | $ | 77,195 |  |  | $ | 46,445 |
Foreign |  | 9,350 |  |  | 4,190 |  |  | 3,997 |
|  | $ | 116,306 |  |  | $ | 81,385 |  |  | $ | 50,442 |
Income tax expense consisted of the following for the years ended December 31:
(in thousands) |  | 2021 |  | 2020 |  | 2019
Current |  |  |  |  |  |
Federal |  | $ | 16,512 |  |  | $ | 19,014 |  |  | $ | 6,976 |
Foreign |  | 1,947 |  |  | — |  |  | — |
State |  | 6,560 |  |  | 6,363 |  |  | 3,562 |
|  | 25,019 |  |  | 25,377 |  |  | 10,538 |
Deferred |  |  |  |  |  |
Federal |  | 5,061 |  |  | (2,519) |  |  | 3,010 |
Foreign |  | 287 |  |  | 963 |  |  | 874 |
State |  | 933 |  |  | (1,195) |  |  | (194) |
|  | 6,281 |  |  | (2,751) |  |  | 3,690 |
Income tax expense |  | $ | 31,300 |  |  | $ | 22,626 |  |  | $ | 14,228 |
The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for operations were as follows for the years ended December 31:
|  | 2021 |  | 2020 |  | 2019
U.S federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of U.S. federal income tax expense |  | 4.7 |  |  | 5.0 |  |  | 4.7 |
Change in valuation allowance |  | — |  |  | 0.1 |  |  | (0.3) |
Tax differential on foreign earnings |  | 0.5 |  |  | 0.3 |  |  | 0.4 |
Non-deductible meals and entertainment |  | 0.1 |  |  | 0.4 |  |  | 0.8 |
Stock compensation excess tax benefits |  | (0.8) |  |  | (0.6) |  |  | 0.1 |
Uncertain tax positions |  | — |  |  | 0.3 |  |  | (0.4) |
Provision to return adjustments, net |  | 0.4 |  |  | 0.4 |  |  | 0.2 |
Global intangible low tax income |  | — |  |  | 0.9 |  |  | 0.3 |
Section 162(m) limitation |  | 1.1 |  |  | 0.5 |  |  | 0.3 |
Non-controlling interest |  | — |  |  | — |  |  | 0.9 |
Other income, net |  | (0.1) |  |  | (0.5) |  |  | 0.2 |
Effective rate |  | 26.9 | % |  | 27.8 | % |  | 28.2 | %
The net deferred tax assets and (liabilities) arising from temporary differences was as follows at December 31:
(in thousands) |  | 2021 |  | 2020
Deferred income tax assets: |  |  |  |
Self insurance reserves |  | $ | 2,138 |  |  | $ | 4,091 |
Contract loss reserves |  | 541 |  |  | 703 |
Stock-based awards |  | 1,633 |  |  | 1,300 |
Bonus |  | 8,373 |  |  | 6,173 |
Accrued vacation |  | 1,977 |  |  | 1,741 |
Accrued profit sharing |  | 2,665 |  |  | 2,476 |
Operating lease liabilities |  | 5,404 |  |  | 5,715 |
Non-U.S. operating loss |  | 2,520 |  |  | 3,601 |
Other |  | 2,628 |  |  | 4,661 |
Total deferred income tax assets before valuation allowances |  | 27,879 |  |  | 30,461 |
Less: valuation allowances |  | (2,593) |  |  | (2,566) |
Total deferred income tax assets |  | 25,286 |  |  | 27,895 |
Deferred income tax liabilities: |  |  |  |
Property and equipment — tax over book depreciation |  | (36,856) |  |  | (34,439) |
Intangible assets — tax over book amortization |  | (2,913) |  |  | (2,207) |
Right-of-use operating lease assets |  | (5,398) |  |  | (5,702) |
Non-U.S. deferred income tax liabilities |  | — |  |  | (1,322) |
Contract revenue adjustment |  | (4,526) |  |  | (2,128) |
Other |  | (213) |  |  | (436) |
Total deferred income tax liabilities |  | (49,906) |  |  | (46,234) |
Net deferred income taxes |  | $ | (24,620) |  |  | $ | (18,339) |
The Company determined that it is more-likely-than-not that it will not realize the deferred tax assets on certain Canadian subsidiaries and recorded a valuation allowance against the entire related deferred tax assets for those entities. As of December 31, 2021, the Company had no undistributed earnings of our Canadian subsidiaries. We expect future earnings to be reinvested. Accordingly, as of December 31, 2021, no expense for U.S. income taxes or foreign withholding taxes was recorded. The Company is subject to taxation in various jurisdictions. The Company’s 2018 through 2020 tax returns are subject to examination by U. S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2017 through 2020. The Company has recorded a liability for unrecognized tax benefits related to tax positions taken on its various income tax returns. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate that is reported in future periods. The decrease in the unrecognized tax benefits as of December 31, 2021 was primarily due to the lapses in the applicable statutes of limitations. The total unrecognized tax benefits is expected to be reduced by less than $0.1 million within the next 12 months. Interest and penalties related to uncertain income tax positions are included as a component of income tax expense in the Financial Statements. The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits at December 31:
(in thousands) |  | 2021 |  | 2020
Balance at beginning of period |  | $ | 353 |  |  | $ | 152 |
Gross increases in current period tax positions |  | 45 |  |  | 217 |
Reductions in tax positions due to lapse of statutory limitations |  | (70) |  |  | (16) |
Balance at end of period |  | 328 |  |  | 353 |
Accrued interest and penalties at end of period |  | 72 |  |  | 69 |
Total liability for unrecognized tax benefits |  | $ | 400 |  |  | $ | 422 |
The liability for unrecognized tax benefits, including accrued interest and penalties, was included in other liabilities on the accompanying consolidated balance sheets. The amount of interest and penalties charged or credited to income tax expense as a result of the unrecognized tax benefits was not significant in the years ended December 31, 2021, 2020 and 2019.

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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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