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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 7. Income Taxes The following is a reconciliation of our effective tax rate to the federal statutory tax rate:
| Years Ended December 31, |  |
| 2021 |  |  | 2020 |  |  | 2019 |  |
U.S. federal statutory rate |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | %
State taxes, net of federal benefit |  | 3.5 |  |  |  | 3.6 |  |  |  | 3.5 |  |
Federal and state incentives |  | (0.5 | ) |  |  | (1.1 | ) |  |  | (0.9 | ) |
State law changes |  | 1.1 |  |  |  | (0.2 | ) |  |  | 0.7 |  |
Permanent differences |  | 0.6 |  |  |  | 0.2 |  |  |  | 1.2 |  |
Net effective rate |  | 25.7 |  | % |  | 23.5 |  | % |  | 25.5 |  | %
The following is a summary of our provision for income taxes (in thousands):
| Years Ended December 31, |
| 2021 |  |  | 2020 |  |  | 2019 |
Current |  |  |  |  |  |  |  |
Federal | $ | 51,918 |  |  | $ | 11,913 |  |  | $ | 31,209 |
State and local |  | 13,876 |  |  |  | 3,597 |  |  |  | 3,979 |
Foreign |  | 38 |  |  |  | 11 |  |  |  | 84 |
|  | 65,832 |  |  |  | 15,521 |  |  |  | 35,272 |
Deferred |  |  |  |  |  |  |  |
Federal |  | (5,125 | ) |  |  | 6,548 |  |  |  | (344 | )
State and local |  | (1,254 | ) |  |  | 465 |  |  |  | 1,788 |
Foreign |  | (17 | ) |  |  | 7 |  |  |  | (17 | )
|  | (6,396 | ) |  |  | 7,020 |  |  |  | 1,427 |
Total provision | $ | 59,436 |  |  | $ | 22,541 |  |  | $ | 36,699 |
The following is a summary of our deferred tax assets and liabilities (in thousands):
| December 31, |
| 2021 |  |  | 2020 |
Accrued compensation |  | 19,226 |  |  |  | 12,467 |
Other reserves |  | 17,896 |  |  |  | 14,154 |
Tax credit carryforwards |  | 8,286 |  |  |  | 8,715 |
Operating loss carryforwards |  | 881 |  |  |  | 2,845 |
Lease accounting liability |  | 11,956 |  |  |  | 11,669 |
Total gross deferred income taxes |  | 58,245 |  |  |  | 49,850 |
Valuation allowances |  | (5,023 | ) |  |  | (6,518 | )
Total deferred tax assets |  | 53,222 |  |  |  | 43,332 |
Prepaids |  | (6,607 | ) |  |  | (6,404 | )
Property and equipment |  | (135,768 | ) |  |  | (132,669 | )
Intangibles |  | (55,466 | ) |  |  | (55,166 | )
Lease right-of-use asset |  | (11,325 | ) |  |  | (11,418 | )
Total deferred tax liabilities |  | (209,166 | ) |  |  | (205,657 | )
Total deferred taxes | $ | (155,944 | ) |  | $ | (162,325 | )
We are subject to income taxation in the United States, numerous state jurisdictions, Mexico and Canada. Because income tax return formats vary among the states, we file both unitary and separate company state income tax returns. We do not permanently reinvest our foreign earnings, all amounts are accrued and accounted for, though not material. We acquired a federal net operating loss carryforward of $4.1 million through the acquisition by way of merger with CaseStack, LLC in December 2018. The Internal Revenue Service ("IRS") loss limitation rules allowed us to utilize $1.3 million in each of the 2021, 2020 and 2019 tax years. The remaining net operating loss of $0.2 million is expected to be fully utilized in 2022. Our state tax net operating losses total $0.6 million. Some of those state losses have no expiration date while others will expire between December 31, 2022, and December 31, 2040. Management believes it is more likely than not that the loss carryforward deferred tax assets will be realized. Our federal incentive tax credit carryforward of $0.1 million expires between December 31, 2025, and December 31, 2028. Our state incentive tax credit carryforwards of $8.2 million expire between December 31, 2022, and December 31, 2026. Management believes it is more likely than not that approximately $3.4 million of the incentive carryforward deferred tax assets will be realized and a valuation allowance of $5.0 million has been established for the remainder which are not expected to be realized. As of December 31, 2021 and December 31, 2020, the amount of unrecognized tax benefits was $6.6 million and $4.3 million, respectively. If recognized, these benefits would decrease our income tax provision by $5.4 million and $3.7 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| 2021 |  |  | 2020 |
Gross unrecognized tax benefits - beginning of the year | $ | 4,292 |  |  | $ | 4,069 |
Gross increases (decreases) related to prior year tax positions |  | 997 |  |  |  | (52 | )
Gross increases related to current year tax positions |  | 1,794 |  |  |  | 1,484 |
Lapse of applicable statute of limitations |  | (436 | ) |  |  | (1,209 | )
Gross unrecognized tax benefits - end of year | $ | 6,647 |  |  | $ | 4,292 |
We recognize interest and penalties related to income tax liabilities in our provision for income taxes. In 2021, we included $0.1 million in our provision for income taxes. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted in response to the COVID-19 pandemic. Among other things, the CARES Act includes provisions related to refundable payroll tax credits, deferment of the employer portion of social security payments, net operating loss carryback periods, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. Though some provisions of the CARES Act do impact the Company, there was no material effect on the Company’s consolidated financial condition or results of operations for the year ended December 31, 2020. On December 27, 2020, the Consolidated Appropriations Act (“CAA”) was enacted in further response to the COVID-19 pandemic, in combination with omnibus spending for the 2021 federal fiscal year. The CAA extended many of the provisions enacted by the CARES Act, the extension of which likewise did not have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2021.

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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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