XML 36 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | The provision for income taxes consists of the following (in millions):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
Federal |  | $ | 34.8 |  |  | $ | 44.4 |  |  | $ | 43.6 |
State |  | 11.8 |  |  | 15.8 |  |  | 15.5 |
Foreign |  | 5.0 |  |  | 4.9 |  |  | 3.0 |
|  | 51.6 |  |  | 65.1 |  |  | 62.1 |
Deferred: |  |  |  |  |  |
Federal and State |  | 28.5 |  |  | 31.6 |  |  | 19.5 |
Foreign |  | (1.7) |  |  | — |  |  | — |
|  | 26.8 |  |  | 31.6 |  |  | 19.5 |
|  | $ | 78.4 |  |  | $ | 96.7 |  |  | $ | 81.6 |
Income from continuing operations before income taxes consists of the following (in millions):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
United States |  | $ | 283.5 |  |  | $ | 347.6 |  |  | $ | 304.5 |
Foreign |  | 14.2 |  |  | 16.0 |  |  | 8.9 |
|  | $ | 297.7 |  |  | $ | 363.6 |  |  | $ | 313.4 |
The components of deferred tax (liabilities) assets are as follows (in millions):
|  | December 31,
|  | 2023 |  | 2022
Intangibles |  | $ | (185.3) |  |  | $ | (159.9) |
Depreciation expense |  | (7.2) |  |  | (8.8) |
Operating lease right-of-use assets |  | (15.2) |  |  | (11.8) |
Operating lease liabilities |  | 15.9 |  |  | 12.2 |
Allowance for doubtful accounts |  | 1.2 |  |  | 1.3 |
Employee-related accruals |  | 17.5 |  |  | 21.0 |
Stock-based compensation |  | 11.8 |  |  | 11.1 |
Other |  | 5.3 |  |  | 5.7 |
|  | $ | (156.0) |  |  | $ | (129.2) |
The reconciliation between the amount computed by applying the U.S. federal statutory tax rate of 21 percent to income before income taxes and the income tax provision is as follows (in millions):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Income tax provision at the statutory rate |  | $ | 62.5 |  |  | $ | 76.3 |  |  | $ | 65.8 |
State income taxes, net of federal benefit |  | 13.6 |  |  | 17.3 |  |  | 15.2 |
Nondeductible executive compensation |  | 4.2 |  |  | 5.4 |  |  | 3.3 |
Disallowed meals and entertainment expenses |  | 1.2 |  |  | 0.5 |  |  | 0.2 |
Excess stock-based compensation benefit |  | (2.6) |  |  | (3.5) |  |  | (2.0) |
Work opportunity tax credit |  | (1.8) |  |  | (2.1) |  |  | (3.1) |
Other |  | 1.3 |  |  | 2.8 |  |  | 2.2 |
|  | $ | 78.4 |  |  | $ | 96.7 |  |  | $ | 81.6 |
As of December 31, 2023, the Company had $0.2 million domestic credit carryforwards and had $1.5 million of foreign net operating losses, which will start to expire in 2030. The Company has recorded a valuation allowance of approximately $0.6 million and $0.9 million at December 31, 2023 and 2022, respectively, related to credits and net operating loss carryforwards. The Company had gross deferred tax assets of $61.0 million and $59.3 million and gross deferred tax liabilities of $216.4 million and $187.6 million at December 31, 2023 and 2022, respectively. Management has determined the gross deferred tax assets are realizable. At December 31, 2023, the Company had undistributed earnings of foreign subsidiaries of approximately $25.1 million, substantially all of which are permanently reinvested. The Company will repatriate a portion of these foreign earnings in situations it deems advantageous for business operations, tax, or cash management reasons. In doing so, the Company could be subject to state income and foreign taxes which would be insignificant. The determination of the amount of unrecognized deferred income tax liability for any basis differences on the permanently reinvested foreign earnings is not practicable due to the complexities associated with this hypothetical calculation. At December 31, 2023 and 2022, there were $1.2 million and $1.4 million of unrecognized tax benefits, respectively, and changes during those years were not significant. If recognized, these unrecognized tax benefits would affect the annual effective tax rate. The gross unrecognized tax benefits are included in other long-term liabilities in the accompanying consolidated balance sheets. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the accompanying consolidated statements of operations and comprehensive income. The amount of interest and penalties recognized in the consolidated financial statements is not significant. The Company believes that there will be no significant decrease in unrecognized tax benefits by the end of 2024. The Company is subject to taxation in the United States and various states and foreign jurisdictions. The IRS has completed an examination of the Company's U.S. income tax return for the 2018 tax year with no change. The Company remains subject to U.S. federal income tax examinations for 2020 and subsequent years. For the majority of U.S. states, with few exceptions and generally for the foreign tax jurisdictions, the Company remains subject to examination for 2019 and subsequent years.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration