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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Tax Provision

    Income before income taxes includes the following components:
Year Ended December 31
202120202019
(thousands)
Domestic$945,562 $284,147 $105,341 
Foreign3,289 2,164 2,890 
Income before income taxes$948,851 $286,311 $108,231 
    
    The income tax provision shown in the Consolidated Statements of Operations includes the following:
Year Ended December 31
202120202019
(thousands)
Current income tax provision
Federal$201,725 $66,401 $13,700 
State48,332 17,434 4,574 
Foreign12 — 7 
Total current250,069 83,835 18,281 
Deferred income tax provision (benefit)
Federal(12,149)22,321 7,430 
State(2,484)4,529 925 
Foreign929 647 670 
Total deferred(13,704)27,497 9,025 
Income tax provision$236,365 $111,332 $27,306 

    The effective tax rate varies from the U.S. Federal statutory income tax rate principally due to the following:
Year Ended December 31
202120202019
(thousands, except percentages)
Income before income taxes$948,851 $286,311 $108,231 
Statutory U.S. income tax rate21.0 %21.0 %21.0 %
Statutory tax provision$199,259 $60,125 $22,728 
State taxes35,705 12,267 4,390 
Stranded tax effects of Plan Termination (a)— 38,794 — 
Unrecognized tax benefits2 87 (178)
Tax credits(620)(712)(725)
Foreign rate differential236 65 71 
Share-based compensation(563)(411)(532)
Nondeductible executive compensation1,664 808 852 
Meals and entertainment336 340 738 
Other346 (31)(38)
Total$236,365 $111,332 $27,306 
Effective income tax rate24.9 %38.9 %25.2 %
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(a)    In December 2020, we eliminated our qualified defined benefit pension plan (Plan Termination), as discussed in Note 11, 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.

    During the years ended December 31, 2021 and 2020, cash paid for taxes, net of refunds received, was $260.1 million and $75.1 million, respectively. During the year ended December 31, 2019, income tax refunds received, net of cash taxes paid, was $1.4 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, 2021 and 2020, are summarized as follows:
December 31, 2021December 31, 2020
(thousands)
Deferred tax assets
Employee benefits$28,534 $29,258 
Lease liabilities24,956 25,057 
Inventories4,100 3,711 
Foreign net operating loss carryforward1,685 1,279 
Other7,170 6,921 
Deferred tax assets$66,445 $66,226 
Deferred tax liabilities
Property and equipment$(32,040)$(45,652)
Right-of-use assets(22,950)(23,256)
Intangible assets and other(6,850)(6,823)
Other(1,657)(1,298)
Deferred tax liabilities$(63,497)$(77,029)
Total deferred tax assets (liabilities), net$2,948 $(10,803)

    As of December 31, 2021, we have foreign net operating loss carryforwards of $11.1 million, which if unused, will expire in years 2032 through 2041. We have state income tax credits totaling $1.9 million as of December 31, 2021, which if unused will expire in years 2022 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:
202120202019
(thousands)
Balance as of January 1$1,780 $1,685 $1,850 
Increases related to prior years' tax positions— 97 — 
Increases related to current years' tax positions28 89 53 
Decreases related to prior years' tax positions(19)— — 
Lapse of statute of limitations(7)(91)(218)
Balance as of December 31$1,782 $1,780 $1,685 

    As of December 31, 2021, 2020, and 2019, we had $1.8 million, $1.8 million, and $1.7 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, $1.8 million, and $1.7 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, 2021, 2020, and 2019, 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 2018 to present remain open to examination in the U.S. and tax years 2017 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.