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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Tax Provision Income before income taxes includes the following components:
|  | Year Ended December 31
|  | 2020 |  | 2019 |  | 2018
|  | (thousands)
Domestic |  | $ | 284,147 |  |  | $ | 105,341 |  |  | $ | 21,704 |
Foreign |  | 2,164 |  |  | 2,890 |  |  | 398 |
Income before income taxes |  | $ | 286,311 |  |  | $ | 108,231 |  |  | $ | 22,102 |
The income tax provision shown in the Consolidated Statements of Operations includes the following:
|  | Year Ended December 31
|  | 2020 |  | 2019 |  | 2018
|  | (thousands)
Current income tax provision |  |  |  |  |  |
Federal |  | $ | 66,401 |  |  | $ | 13,700 |  |  | $ | 6,459 |
State |  | 17,434 |  |  | 4,574 |  |  | 3,126 |
Foreign |  | — |  |  | 7 |  |  | 5 |
Total current |  | 83,835 |  |  | 18,281 |  |  | 9,590 |
Deferred income tax provision (benefit) |  |  |  |  |  |
Federal |  | 22,321 |  |  | 7,430 |  |  | (5,987) |
State |  | 4,529 |  |  | 925 |  |  | (2,127) |
Foreign |  | 647 |  |  | 670 |  |  | 149 |
Total deferred |  | 27,497 |  |  | 9,025 |  |  | (7,965) |
Income tax provision |  | $ | 111,332 |  |  | $ | 27,306 |  |  | $ | 1,625 |
The effective tax rate varies from the U.S. Federal statutory income tax rate principally due to the following:
|  | Year Ended December 31
|  | 2020 |  | 2019 |  | 2018
|  | (thousands, except percentages)
Income before income taxes |  | $ | 286,311 |  |  | $ | 108,231 |  |  | $ | 22,102 |
Statutory U.S. income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Statutory tax provision |  | $ | 60,125 |  |  | $ | 22,728 |  |  | $ | 4,642 |
State taxes |  | 12,267 |  |  | 4,390 |  |  | 741 |
Stranded tax effects of Plan Termination (a) |  | 38,794 |  |  | — |  |  | — |
Unrecognized tax benefits |  | 87 |  |  | (178) |  |  | (181) |
Benefit from enactment of the Tax Act (b) |  | — |  |  | — |  |  | (3,806) |
Tax credits |  | (712) |  |  | (725) |  |  | (272) |
Foreign rate differential |  | 65 |  |  | 71 |  |  | 432 |
Share-based compensation |  | (411) |  |  | (532) |  |  | (1,718) |
Nondeductible executive compensation |  | 808 |  |  | 852 |  |  | 366 |
Meals and entertainment |  | 340 |  |  | 738 |  |  | 886 |
Other |  | (31) |  |  | (38) |  |  | 535 |
Total |  | $ | 111,332 |  |  | $ | 27,306 |  |  | $ | 1,625 |
Effective income tax rate |  | 38.9 | % |  | 25.2 | % |  | 7.4 | %
______________________________________ (a) In December 2020, we eliminated our qualified defined benefit pension plan (Plan Termination), as discussed in Note 12, Retirement and Benefit Plans. Prior to the Plan Termination, "Accumulated other comprehensive loss" on our Consolidated Balance Sheet included the stranded tax effects of our conversion from a limited liability company to a corporation in 2013 and the adoption of the Tax Cuts and Jobs Act (the "Tax Act") in 2017. Upon Plan Termination, these stranded tax effects of $38.8 million were required to be released into income tax expense under GAAP. (b) As of December 31, 2018, we completed our assessment of the effects of the Tax Act on our financial statements. In connection with our analysis of the Tax Act, we recorded a discrete tax benefit of $3.8 million during the year ended December 31, 2018. The $3.8 million reduction in income tax expense resulted from the remeasurement of deferred income taxes to the new federal statutory rate of 21%, which mostly related to a $20.0 million discretionary pension contribution made during 2018, for which we received a tax deduction at the 2017 federal income tax rate of 35%. During the year ended December 31, 2020, cash paid for taxes, net of refunds received, was $75.1 million. During the year ended December 31, 2019, income tax refunds received, net of cash taxes paid, was $1.4 million. During the year ended December 31, 2018, cash paid for taxes, net of refunds received, was $14.5 million. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of our net deferred tax assets and liabilities at December 31, 2020 and 2019, are summarized as follows:
|  | December 31, 2020 |  | December 31, 2019
|  | (thousands)
Deferred tax assets |  |  |  |
Employee benefits |  | $ | 29,258 |  |  | $ | 26,914 |
Lease liabilities |  | 25,057 |  |  | 23,241 |
Inventories |  | 3,711 |  |  | 3,358 |
Foreign net operating loss carryforward |  | 1,279 |  |  | 1,514 |
Other |  | 6,921 |  |  | 6,256 |
Deferred tax assets |  | $ | 66,226 |  |  | $ | 61,283 |
Deferred tax liabilities |  |  |  |
Property and equipment |  | $ | (45,652) |  |  | $ | (50,751) |
Right-of-use assets |  | (23,256) |  |  | (21,753) |
Intangible assets and other |  | (6,823) |  |  | (5,924) |
Other |  | (1,298) |  |  | (1,597) |
Deferred tax liabilities |  | $ | (77,029) |  |  | $ | (80,025) |
Total deferred tax liabilities, net |  | $ | (10,803) |  |  | $ | (18,742) |
As of December 31, 2020, we have foreign net operating loss carryforwards of $9.9 million, which if unused, will expire in years 2032 through 2036. We have state income tax credits totaling $1.3 million as of December 31, 2020, which if unused will expire in years 2021 through 2032. The foreign net operating loss and state credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those net operating loss and state credit carryforwards are presented net of these unrecognized tax benefits. Income Tax Uncertainties The following table summarizes the changes related to our gross unrecognized tax benefits excluding interest and penalties:
|  | 2020 |  | 2019 |  | 2018
|  | (thousands)
Balance as of January 1 |  | $ | 1,685 |  |  | $ | 1,850 |  |  | $ | 2,083 |
Increases related to prior years' tax positions |  | 97 |  |  | — |  |  | 13 |
Increases related to current years' tax positions |  | 89 |  |  | 53 |  |  | — |
Decreases related to prior years' tax positions |  | — |  |  | — |  |  | (43) |
Lapse of statute of limitations |  | (91) |  |  | (218) |  |  | (203) |
Balance as of December 31 |  | $ | 1,780 |  |  | $ | 1,685 |  |  | $ | 1,850 |
As of December 31, 2020, 2019, and 2018, we had $1.8 million, $1.7 million, and $1.9 million, respectively, of unrecognized tax benefits recorded on our Consolidated Balance Sheets, excluding interest and penalties. Of the total unrecognized tax benefits recorded, $1.8 million, $1.7 million, and $1.8 million (net of the federal benefit for state taxes), respectively, would impact the effective tax rate if recognized. We recognize interest and penalties related to uncertain tax positions as income tax expense in our Consolidated Statements of Operations. For the years ended December 31, 2020, 2019, and 2018, we recognized an insignificant amount of interest and penalties related to taxes. We recognize tax liabilities and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available or as new uncertainties occur. We do not expect the unrecognized tax benefits to change significantly over the next twelve months. We file income tax returns in the U.S. and various state and foreign jurisdictions. Tax years 2017 to present remain open to examination in the U.S. and tax years 2016 to present remain open to examination in Canada and various states. We recorded net operating losses in Canada beginning in 2006 that are subject to examinations and adjustments up to four years following the year in which they are utilized.

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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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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