XML 41 R28.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The income tax provision for the years ended December 31, 2019, 2020 and 2021 is summarized below (in thousands):
| 2019 |  | 2020 |  | 2021
Current: |  |  |  |  |
Federal | $ | 37,878 |  |  | $ | 31,398 |  |  | $ | 20,754 |
State | 11,584 |  |  | 9,786 |  |  | 5,736 |
Foreign | — |  |  | 125 |  |  | 2,761 |
Total current | 49,462 |  |  | 41,309 |  |  | 29,251 |
Deferred: |  |  |  |  |
Federal | (7,009) |  |  | (8,537) |  |  | (10,128) |
State | 133 |  |  | (538) |  |  | (612) |
Foreign | — |  |  | (4,545) |  |  | 3,001 |
Total deferred | (6,876) |  |  | (13,620) |  |  | (7,739) |
Total provision for income taxes | $ | 42,586 |  |  | $ | 27,689 |  |  | $ | 21,512 |
The U.S. and foreign components of income (loss) before income taxes for the years ended December 31, 2019, 2020 and 2021 are summarized below (in thousands):
| 2019 |  | 2020 |  | 2021
United States | $ | 123,724 |  |  | $ | 128,822 |  |  | $ | 57,804 |
Foreign | — |  |  | (14,865) |  |  | 18,795 |
Total income before income taxes | $ | 123,724 |  |  | $ | 113,957 |  |  | $ | 76,599 |
The Company is making an assertion that all earnings generated by its foreign subsidiaries are permanently reinvested in non-U.S. business or are distributable to the United States without material tax implications. As such, income taxes have not been accrued in the United States with respect to foreign subsidiary earnings. The Company intends to continue to reinvest the earnings outside of the United States for which there would be a material tax implication to distributing, such as withholding tax, for the foreseeable future and, as a result, have not recognized additional tax expense on these earnings. The tax effects of the principal temporary differences that give rise to the Company’s net deferred tax liability are as follows as of December 31, 2020 and 2021 (in thousands):
| 2020 |  | 2021
Lease liabilities | $ | 28,017 |  |  | $ | 25,706 |
Allowance for credit losses | 14,083 |  |  | 13,190 |
Contract liabilities | 8,500 |  |  | 10,214 |
Stock-based compensation | 6,318 |  |  | 7,758 |
Other | 6,713 |  |  | 7,020 |
Other facility-related costs | 582 |  |  | 1,916 |
Loss carryforward | 7,307 |  |  | 619 |
Intangible assets | (84,515) |  |  | (74,016) |
Property and equipment | (20,421) |  |  | (21,320) |
Right-of-use lease assets | (19,991) |  |  | (15,052) |
Valuation allowance | — |  |  | (630) |
Net deferred tax liability | $ | (53,407) |  |  | $ | (44,595) |
The valuation allowance for deferred tax assets as of December 31, 2021 was $0.6 million and is primarily related to net operating loss carryforwards in states where the Company does not file a consolidated tax return. The Company concluded that it was more likely than not that the deferred tax asset for the net operating loss carryforwards would not be realized due to negative evidence outweighing the positive evidence regarding the realization of the deferred tax assets. The Company will continue to evaluate its ability to realize its net deferred tax assets on a quarterly basis. The Company had no valuation allowance for deferred tax assets as of December 31, 2020. As of December 31, 2021, Loss carryforward consists of net operating losses related to the states where the Company does not file a consolidated return. As of December 31, 2020 and 2021, the Company’s liabilities for unrecognized tax benefits are included in other long-term liabilities in the consolidated balance sheets. Interest and penalties, including those related to uncertain tax positions, are included in the provision for income taxes in the consolidated statements of income . The Company recognized $64,000 and $33,000 of expense related to interest and penalties in 2020 and 2021, respectively. The total amount of interest and penalties included in the consolidated balance sheets was $45,000 and $30,000 as of December 31, 2020 and 2021, respectively. The following table summarizes changes in unrecognized tax benefits, excluding interest and penalties, for the respective periods (in thousands):
| Year Ended December 31,
| 2020 |  | 2021
Beginning unrecognized tax benefits | $ | 1,165 |  |  | $ | 314 |
Additions for tax positions taken in the prior year | 30 |  |  | 948 |
Reductions for tax positions taken in prior years | (881) |  |  | (219) |
Ending unrecognized tax benefits | $ | 314 |  |  | $ | 1,043 |
The Company does not anticipate significant changes to unrecognized tax benefits within the next 12 months. As of December 31, 2021, $1.0 million of the Company’s total unrecognized tax benefits would favorably affect the Company’s effective tax rate, if recognized. A reconciliation between the Company’s statutory tax rate and the effective tax rate for the years ended December 31, 2019, 2020, and 2021 is as follows:
| 2019 |  | 2020 |  | 2021
Statutory federal rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefits | 4.6 |  |  | 5.6 |  |  | 3.4 |
Impact of foreign operations | — |  |  | (1.2) |  |  | 2.2 |
Termination of deferred compensation arrangements | 9.2 |  |  | — |  |  | — |
Transaction costs | — |  |  | 0.6 |  |  | — |
Excess tax benefit on share-based compensation | (2.6) |  |  | (2.0) |  |  | — |
Other | 2.2 |  |  | 0.3 |  |  | 1.5 |
Effective tax rate | 34.4 | % |  | 24.3 | % |  | 28.1 | %
In February 2019, to align compensation and benefit plans after completion of the merger with CEC, the Compensation Committee of the Company’s Board of Directors took action to terminate all deferred compensation arrangements, including for employees already participating in such arrangements. These changes affect the tax deductibility of certain arrangements, which resulted in a discrete item recorded during the three months ended March 31, 2019, reducing the Company’s deferred tax assets by $11.5 million, and increasing the Company’s 2019 effective tax rate and future cash tax payments. Cash payments for income taxes were $48.8 million, $45.4 million, and $27.3 million in 2019, 2020, and 2021, respectively.

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