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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 17. Income Taxes Provision for income taxes from continuing operations consists of the following for the periods presented (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 63,041 |  |  | $ | 48,292 |  |  | $ | (18,215 | )
State |  |  | 13,769 |  |  |  | 6,715 |  |  |  | 4,981 |
Foreign |  |  | 755 |  |  |  | 778 |  |  |  | 732 |
Total current |  |  | 77,565 |  |  |  | 55,785 |  |  |  | (12,502 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 9,808 |  |  |  | 13,339 |  |  |  | 46,442 |
State |  |  | 6,377 |  |  |  | (1,892 | ) |  |  | 564 |
Foreign |  |  | 360 |  |  |  | 325 |  |  |  | 6,102 |
Total deferred provision |  |  | 16,545 |  |  |  | 11,772 |  |  |  | 53,108 |
Provision for income taxes |  | $ | 94,110 |  |  | $ | 67,557 |  |  | $ | 40,606 |
A reconciliation of the U.S. federal statutory rate to the effective tax rate is as follows for the periods presented:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. federal statutory rate on income before income taxes |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Impact of foreign operations |  |  | (0.1 | ) |  |  | 1.7 |  |  |  | (0.5 | )
Effects of statutory rate change |  |  | — |  |  |  | — |  |  |  | 3.2 |
State income taxes, net of federal tax effect |  |  | 4.7 |  |  |  | 3.9 |  |  |  | 5.1 |
Permanent differences |  |  | 0.1 |  |  |  | 1.7 |  |  |  | 1.5 |
Change in valuation allowance |  |  | 0.2 |  |  |  | (2.8 | ) |  |  | 127.4 |
Unrecognized tax benefit release |  |  | — |  |  |  | (0.9 | ) |  |  | (0.4 | )
Federal tax credits |  |  | (0.6 | ) |  |  | (0.8 | ) |  |  | (1.0 | )
Basis recognition related to foreign divestiture |  |  | — |  |  |  | — |  |  |  | (129.9 | )
CARES Act impacts to net operating losses |  |  | — |  |  |  | — |  |  |  | (4.5 | )
Other |  |  | (0.1 | ) |  |  | 0.7 |  |  |  | 0.2 |
Effective income tax rate |  |  | 25.2 | % |  |  | 24.5 | % |  |  | 22.1 | %
For the year ended December 31, 2022, the provision for income taxes was $94.1 million, reflecting an effective tax rate of 25.2%, compared to $67.6 million, reflecting an effective tax rate of 24.5%, for the year ended December 31, 2021. The domestic and foreign components of income from continuing operations before income taxes for continuing operations are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Foreign |  | $ | 5,420 |  |  | $ | 5,596 |  |  | $ | 9,904 |
Domestic |  |  | 368,723 |  |  |  | 270,164 |  |  |  | 173,893 |
Income from continuing operations before income taxes |  | $ | 374,143 |  |  | $ | 275,760 |  |  | $ | 183,797 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities of the Company at December 31, 2022 and December 31, 2021 were as follows (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses and tax credit carryforwards – federal and state |  | $ | 7,333 |  |  | $ | 9,354 |
Capital loss carryovers |  |  | 215,745 |  |  |  | 215,367 |
Bad debt allowance |  |  | 1,148 |  |  |  | 1,083 |
Accrued compensation and severance |  |  | 18,784 |  |  |  | 18,241 |
Insurance reserves |  |  | 20,924 |  |  |  | 18,847 |
Leases |  |  | 862 |  |  |  | 896 |
Accrued expenses |  |  | — |  |  |  | 5,768 |
Interest carryforwards |  |  | 2,639 |  |  |  | 3,396 |
Lease right-of-use liabilities |  |  | 26,277 |  |  |  | 26,154 |
Fixed asset basis difference |  |  | 2,128 |  |  |  | — |
Other assets |  |  | 8,987 |  |  |  | 8,066 |
Total gross deferred tax assets |  |  | 304,827 |  |  |  | 307,172 |
Less: valuation allowance |  |  | (217,705 | ) |  |  | (217,325 | )
Deferred tax assets |  |  | 87,122 |  |  |  | 89,847 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed asset basis difference |  |  | — |  |  |  | (2,456 | )
Prepaid items |  |  | (3,714 | ) |  |  | (2,882 | )
Accrued expenses |  |  | (5,713 | ) |  |  | — |
Intangible assets |  |  | (139,843 | ) |  |  | (126,446 | )
Lease right-of-use assets |  |  | (24,960 | ) |  |  | (24,660 | )
Investment in foreign subsidiary |  |  | (2,530 | ) |  |  | (4,691 | )
Total deferred tax liabilities |  |  | (176,760 | ) |  |  | (161,135 | )
Total net deferred tax liability |  | $ | (89,638 | ) |  | $ | (71,288 | )
The Company records a valuation allowance to reduce its net deferred tax assets to the amount that is more likely than not to be realized. At December 31, 2022 and 2021, the Company carried a valuation allowance against deferred tax assets of $217.7 million and $217.3 million, respectively. These amounts are primarily related to deferred tax assets related to the Company’s capital loss carryforward resulting from the U.K. Sale and certain state net operating losses. If the capital loss carryforward is not utilized, it will begin to expire in 2026. As of December 31, 2022 and 2021, the Company had no federal net operating loss carryforwards. The foreign net operating loss carryforwards at December 31, 2022 and 2021 are approximately $0.1 million and $0.1 million, respectively, and have no expiration. The Company has state net operating loss carryforwards at December 31, 2022 and 2021 of approximately $191.5 million and $227.3 million, respectively. These net operating loss carryforwards, if not used to offset future taxable income, will expire from 2023 to 2036. In addition, the Company has certain state tax credits of $0.2 million which will begin to expire in 2030 if not utilized. Income taxes receivable was $28.9 million and $24.6 million at December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, $23.1 million of income taxes receivable has been included in other assets due to anticipated delays in receipt of income tax refunds associated with amended tax return filings. The remaining $5.8 million and $1.5 million of income taxes receivable is included in other current assets in the December 31, 2022 and 2021 consolidated balance sheet, respectively. Income taxes payable of $1.3 million and $5.5 million at December 31, 2022 and 2021, respectively, was included in other accrued liabilities in the consolidated balance sheets. The Company did not record any amounts related to unrecognized tax benefits at December 31, 2022 or 2021. The Company’s accounting policy is to record any interest and penalties as a component of income tax expense, when applicable. A reconciliation of the beginning and ending amount of unrecognized income tax benefits, exclusive of any interest and penalties, net of the federal benefit, is as follows (in thousands):
|  | 2021 |
Balance at January 1 |  | $ | 2,060 |
Additions based on tax positions related to the current year |  |  | — |
Reductions as a result of the lapse of applicable statutes of limitations and settlements with tax authorities |  |  | (2,060 | )
Balance at December 31 |  | $ | — |
The Company and its subsidiaries file income tax returns in federal and in many state and local jurisdictions as well as foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service (“IRS”) for calendar years 2019 through 2021. Additionally, any net operating losses that were generated in prior years and utilized in these years may also be subject to examination by the IRS. While no foreign jurisdictions are presently under examination, the Company may be subject to examination for calendar years 2018 through 2021. Generally, for state tax purposes, the Company’s 2017 through 2021 tax years remain open for examination by the tax authorities. At the date of this report, there were no audits or inquires that had progressed sufficiently to predict their ultimate outcome.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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