XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9. INCOME TAXES Income before provision (benefit) for income taxes consisted of the following:
(in thousands) |  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. |  | $ | 234,188 |  |  | $ | 149,759 |  |  | $ | 121,660 |
Foreign |  |  | 228 |  |  |  | 261 |  |  |  | 96 |
|  | $ | 234,416 |  |  | $ | 150,020 |  |  | $ | 121,756 |
The provision (benefit) for income taxes consisted of the following:
(in thousands) |  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 57,176 |  |  | $ | 19,480 |  |  | $ | (1,692 | )
State |  |  | (5,587 | ) |  |  | 8,708 |  |  |  | 5,360 |
Foreign |  |  | 1,847 |  |  |  | 2,208 |  |  |  | 2,035 |
|  |  | 53,436 |  |  |  | 30,396 |  |  |  | 5,703 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 4,892 |  |  |  | 4,563 |  |  |  | 23,433 |
State |  |  | 1,481 |  |  |  | (68 | ) |  |  | 2,896 |
Foreign |  |  | (14 | ) |  |  | (9 | ) |  |  | 19 |
|  |  | 6,359 |  |  |  | 4,486 |  |  |  | 26,348 |
Total |  | $ | 59,795 |  |  | $ | 34,882 |  |  | $ | 32,051 |
The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  |  | 4.9 |  |  |  | 4.9 |  |  |  | 5.1 |
State deferred tax apportionment change, net of federal benefit |  |  | (0.2 | ) |  |  | (1.1 | ) |  |  | 1.6 |
Non-deductible transaction costs |  |  | 0.3 |  |  |  | — |  |  |  | — |
Non-deductible executive compensation |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 0.8 |
Share-based compensation |  |  | (1.2 | ) |  |  | (1.7 | ) |  |  | (2.1 | )
Enactment of the Tax Cuts and Jobs Act |  |  | (0.2 | ) |  |  | (0.2 | ) |  |  | — |
Other |  |  | 0.5 |  |  |  | (0.2 | ) |  |  | (0.1 | )
|  |  | 25.5 | % |  |  | 23.3 | % |  |  | 26.3 | %
The following table shows the deferred income taxes related to the temporary differences between the tax bases of assets and liabilities and the respective amounts included in “Deferred income taxes, net” on the Company’s Consolidated Balance Sheets:
(in thousands) |  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax liabilities: |  |  |  |  |  |
Accelerated depreciation |  | $ | 273,503 |  |  | $ | 249,568 |
Prepaid costs currently deductible |  |  | 12,567 |  |  |  | 8,646 |
Other |  |  | 6,767 |  |  |  | 8,124 |
Total deferred tax liabilities |  |  | 292,837 |  |  |  | 266,338 |
Deferred tax assets: |  |  |  |  |  |
Accrued costs not yet deductible |  |  | 13,742 |  |  |  | 12,207 |
Allowance for doubtful accounts |  |  | 713 |  |  |  | 588 |
Net operating loss carry-forward |  |  | 28,670 |  |  |  | — |
Deferred revenues |  |  | 5,439 |  |  |  | 4,069 |
Share-based compensation |  |  | 2,718 |  |  |  | 2,563 |
Total deferred tax assets, net of valuation allowance of $0.2 million in 2023 and 2022 |  |  | 51,282 |  |  |  | 19,427 |
Deferred income taxes, net |  | $ | 241,555 |  |  | $ | 246,911 |
The net deferred income tax liability presented in the table above for the period ended December 31, 2022, included a net deferred tax liability of $43.6 million related to the divested Adler Tanks segment and is included in Liabilities of discontinued operations on the Consolidated Balance Sheets. As of December 31, 2023, the current and deferred tax liabilities from discontinued operations of $64.8 million were paid in full and no future tax obligations pertaining to the Adler Tanks segment remain. The Company's tax loss carryforwards for the year ended December 31, 2023, were $129.2 million and $32.2 million for federal and state jurisdictions, respectively, which are expected to result in a future federal and state tax benefit of $27.1 million and $1.5 million, respectively. The availability of these tax losses to offset future income varies by jurisdiction. Furthermore, the ability to utilize the tax losses may be subject to additional limitations. The company’s federal net operating loss carryforwards have an indefinite carryforward period. The company’s state net operating loss carryforwards have differing carryforward periods. The Company anticipates that the available net operating losses as of December 31, 2023, will be utilized prior to their respective expiration dates. In December 2016, the Company decided to exit the Bangalore, India branch operations of its TRS-RenTelco electronics division. The wind down of operations in India began in 2017. As a result, a valuation allowance was recorded against the deferred tax assets that resulted primarily from accumulated net operating loss carry forwards in India that management estimated the benefit of which will not be realized. As of December 31, 2023, the Company’s foreign net operating losses for tax purposes were $0.6 million. If not realized, these carry forwards will expire in 2024. For income tax purposes, deductible compensation related to share-based awards is based on the value of the award when realized, which may be different than the compensation expense recognized by the company for financial statement purposes which is based on the award value on the date of grant. The difference between the value of the award upon grant, and the value of the award when ultimately realized, creates either additional tax expense or benefit. In 2023, 2022 and 2021 exercise of share-based awards by employees resulted in an excess tax benefit of $2.7 million, $2.6 million and $2.5 million, respectively. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company evaluated all of its tax positions for which the statute of limitations remained open and determined there were no material unrecognized tax benefits as of December 31, 2023 and 2022. In addition, there have been no material changes in unrecognized benefits during 2023, 2022 and 2021. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to interpretation of the related tax laws and regulations and require the application of significant judgment. Our income tax returns are subject to examination by federal, state and foreign tax authorities. There may be differing interpretations of tax laws and regulations, and as a result, disputes may arise with these tax authorities involving the timing and amount of deductions and allocation of income. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2019. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes in the accompanying Consolidated Statements of Income for all periods presented. Such interest and penalties were not significant for the years ended December 31, 2023, 2022 and 2021.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration