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Income Taxes | 12 Months Ended
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Dec. 31, 2023
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, |  |
| 2023 |  |  | 2022 |  |  | 2021 |  |
U.S. federal statutory rate |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | %
State taxes, net of federal benefit |  | 0.4 |  |  |  | 3.5 |  |  |  | 3.5 |  |
Federal and state incentives |  | (1.9 | ) |  |  | (1.4 | ) |  |  | (0.5 | ) |
State law changes |  | (0.2 | ) |  |  | 0.4 |  |  |  | 1.1 |  |
Permanent differences |  | 0.6 |  |  |  | 0.2 |  |  |  | 0.6 |  |
Net effective rate |  | 19.9 |  | % |  | 23.7 |  | % |  | 25.7 |  | %
The following is a summary of our provision for income taxes (in thousands):
| Years Ended December 31, |
| 2023 |  |  | 2022 |  |  | 2021 |
Current |  |  |  |  |  |  |  |
Federal | $ | 34,951 |  |  | $ | 85,831 |  |  | $ | 51,918 |
State and local |  | (1,191 | ) |  |  | 25,162 |  |  |  | 13,876 |
Foreign |  | 55 |  |  |  | 32 |  |  |  | 38 |
|  | 33,815 |  |  |  | 111,025 |  |  |  | 65,832 |
Deferred |  |  |  |  |  |  |  |
Federal |  | 8,305 |  |  |  | 7,366 |  |  |  | (5,125 | )
State and local |  | (432 | ) |  |  | (7,388 | ) |  |  | (1,254 | )
Foreign |  | (12 | ) |  |  | 7 |  |  |  | (17 | )
|  | 7,861 |  |  |  | (15 | ) |  |  | (6,396 | )
Total provision | $ | 41,676 |  |  | $ | 111,010 |  |  | $ | 59,436 |
The following is a summary of our deferred tax assets and liabilities (in thousands):
| December 31, |
| 2023 |  |  | 2022 |
Accrued compensation |  | 9,884 |  |  |  | 21,035 |
Other reserves |  | 32,060 |  |  |  | 30,588 |
Tax credit carryforwards |  | 6,533 |  |  |  | 8,156 |
Operating loss carryforwards |  | 151 |  |  |  | 166 |
Lease accounting liability |  | 44,440 |  |  |  | 29,185 |
Total gross deferred income taxes |  | 93,068 |  |  |  | 89,130 |
Valuation allowances |  | (1,174 | ) |  |  | (1,567 | )
Total deferred tax assets |  | 91,894 |  |  |  | 87,563 |
Prepaids |  | (6,444 | ) |  |  | (6,077 | )
Property and equipment |  | (153,790 | ) |  |  | (156,961 | )
Intangibles |  | (53,759 | ) |  |  | (54,796 | )
Lease right-of-use asset |  | (41,668 | ) |  |  | (25,652 | )
Total deferred tax liabilities |  | (255,661 | ) |  |  | (243,486 | )
Total deferred taxes | $ | (163,767 | ) |  | $ | (155,923 | )
We are subject to income taxation in the United States, numerous state jurisdictions, Mexico, Canada, and India. 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. Our state tax net operating losses total $0.2 million. Some of those state losses have no expiration date while others will expire between December 31, 2024, and December 31, 2042. Management believes it is more likely than not that the loss carryforward deferred tax assets will be fully 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 $8.1 million expire between December 31, 2024, and December 31, 2027. Management believes it is more likely than not that approximately $6.7 million of the incentive carryforward deferred tax assets will be realized and a valuation allowance of $1.2 million has been established for the remainder which are not expected to be realized. As of December 31, 2023 and December 31, 2022, the amount of unrecognized tax benefits was $12.9 million and $11.1 million, respectively. If recognized, these benefits would decrease our income tax provision by $10.2 million and $9.0 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| 2023 |  |  | 2022 |
Gross unrecognized tax benefits - beginning of the year | $ | 11,116 |  |  | $ | 6,647 |
Gross increases related to prior year tax positions |  | 761 |  |  |  | 425 |
Gross increases related to current year tax positions |  | 1,460 |  |  |  | 4,665 |
Lapse of applicable statute of limitations |  | (478 | ) |  |  | (621 | )
Gross unrecognized tax benefits - end of year | $ | 12,859 |  |  | $ | 11,116 |
We recognize interest and penalties related to income tax liabilities in our provision for income taxes. In 2023, 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. 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, Though some provisions of the CARES Act and CAA do impact the Company, there was no material effect on the Company’s consolidated financial condition or results of operations for the years ended December 31, 2023, 2022 or 2021. The Inflation Reduction Act of 2022 was signed into law on August 16, 2022, and the CHIPS and Science Act of 2022 was signed into law on August 9, 2022. These laws implement new tax provisions, primarily a 15% corporate alternative minimum tax and a nondeductible 1% excise tax on the fair market value of stock repurchased by publicly traded corporations. We do not anticipate any other material impact of these provisions. The two acts also provide various tax credits, several of which are transferable or refundable, for the investment in or production of clean-energy effective January 1, 2023. We will continue to evaluate potential tax benefits available under the acts as additional guidance is issued in future periods.

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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 -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
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