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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes |
13. | Income Taxes:
The components of the income tax provision (benefit) are as follows (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 73,333 |  |  | $ | 95,955 |  |  | $ | 122,379 |
Deferred |  |  | (141,359 | ) |  |  | (21,386 | ) |  |  | (63,981 | )
|  |  | (68,026 | ) |  |  | 74,569 |  |  |  | 58,398 |
State: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 11,777 |  |  |  | 26,145 |  |  |  | 19,084 |
Deferred |  |  | (35,637 | ) |  |  | (4,261 | ) |  |  | 2,749 |
|  |  | (23,860 | ) |  |  | 21,884 |  |  |  | 21,833 |
Total |  | $ | (91,886 | ) |  | $ | 96,453 |  |  | $ | 80,231 |
The Company files its tax return on a consolidated basis with its subsidiaries, and its affiliated professional contractors file tax returns on an individual basis. Beginning on January 1, 2018, the Company’s statutory tax rate was reduced from 35.0% to 21.0% as a result of legislation enacted under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The effective tax rate for continuing operations was 7.4%, 27.2% and 20.8% for the years ended December 31, 2019, 2018 and 2017, respectively. During the three months ended September 30, 2019, a $213.7 million income tax charge was recognized relating to the nondeductible portion of the Company’s non-cash goodwill impairment charge. During the three months ended December 31, 2017, the Company recorded a $70.0 million income tax benefit related to the reduction of its net deferred tax liability resulting from the reduction in the corporate tax rate under the TCJA. The differences between the effective rate and the United States federal income tax statutory rate are as follows:
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Tax at statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 35.00 | %
State income tax, net of federal benefit |  |  | 3.85 |  |  |  | 4.35 |  |  |  | 3.38 |
Non-deductible expenses |  |  | (0.22 | ) |  |  | 0.42 |  |  |  | 0.48 |
Change in accrual estimates relating to uncertain tax positions |  |  | 0.36 |  |  |  | 0.02 |  |  |  | — |
Capital loss on liquidation |  |  | 1.79 |  |  |  | — |  |  |  | — |
Change in valuation allowance |  |  | (1.73 | ) |  |  | — |  |  |  | — |
Impairments |  |  | (17.16 | ) |  |  | — |  |  |  | — |
Other, net |  |  | (0.49 | ) |  |  | 1.70 |  |  |  | 0.10 |
Change in tax law |  |  | — |  |  |  | (0.32 | ) |  |  | (18.16 | )
Income tax provision |  |  | 7.40 | % |  |  | 27.17 | % |  |  | 20.80 | %
All of the Company’s deferred tax assets and liabilities are classified as long-term. The significant components of deferred income tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Allowance for uncollectible accounts |  | $ | 202,464 |  |  | $ | 194,299 |
Reserves and accruals |  |  | 72,132 |  |  |  | 56,583 |
Stock-based compensation |  |  | 11,393 |  |  |  | 9,201 |
Loss carryforwards |  |  | 36,017 |  |  |  | 24,864 |
Property and equipment |  |  | 388 |  |  |  | — |
Other |  |  | 631 |  |  |  | 1,197 |
Deferred tax assets before valuation allowance |  |  | 323,025 |  |  |  | 286,144 |
Less: Valuation allowance |  |  | (24,139 | ) |  |  | (2,628 | )
Deferred tax assets, net of valuation allowance |  |  | 298,886 |  |  |  | 283,516 |
Gross deferred tax liabilities: |  |  |  |  |  |  |  |
Amortization |  |  | (119,481 | ) |  |  | (247,239 | )
Accounting method changes |  |  | (74,684 | ) |  |  | (109,418 | )
Accrual to cash adjustment |  |  | — |  |  |  | (39 | )
Other |  |  | (331 | ) |  |  | (491 | )
Total deferred tax liabilities |  |  | (194,496 | ) |  |  | (357,187 | )
Net deferred tax assets ( liabilities ) |  | $ | 104,390 |  |  | $ | (73,671 | )
The Company’s net deferred tax assets were $104.4 million as of December 31, 2019, as compared to net deferred tax liabilities of $73.7 million at December 31, 2018. The increase in net deferred tax assets of $178.1 million during the year ended December 31, 2019 was primarily related to the deferred tax benefit from the Company’s non-cash goodwill impairment charge recorded during the year ended December 31 , 2019. The increase in the Company’s valuation allowance during the year ended December 31, 2019 was primarily related to a capital loss carryforward generated during 2019. Beginning January 1, 2017, excess tax benefits or deficiencies associated with the exercise of stock options, the vesting of restricted and deferred stock and the purchase of shares under the Company’s non-qualified employee stock purchase plan are recognized as income tax benefits or expenses in the income statement in the reporting period in which they occur instead of an increase or decrease to additional paid-in-capital. For the years ended December 31, 2019, 2018 and 2017, income tax expense of $3.9 million, $1.4 million and $0.2 million, respectively, was recognized for excess tax deficiencies. During the year ended December 31, 2019, the Company generated a $68.0 million capital loss carryforward which expires in 2024. As of December 31, 2019, the Company has provided a $17.1 million valuation allowance against this deferred tax asset based on management’s determination that it is more likely than not that the tax benefits related to this asset will not be realized. Additionally, the Company has net operating loss carryforwards for federal and state tax purposes totaling $ 75.4 million, $ 100.7 million and $ 114.5 million at December 31 , 2019 , 2018 and 2017 , respectively. With respect to the December 31 , 201 9 balance, $ 38.7 million expires at various times from 2021 through 2039 , and $ 36.7 million does not expire. As of December 31 , 2019 , 2018 and 2017 , the Company’s liability for uncertain tax positions, excluding accrued interest and penalties, was $ 7.4 million, $ 11.2 million and $ 11.0 million, respectively. As of December 31 , 2019 , the Company had $ 7.1 million of uncertain tax positions that, if recognized, would favorably impact its effective tax rate. The following table summarizes the activity related to the Company’s liability for uncertain tax positions for the years ended December 31, 2019, 2018 and 2017 (in thousands):
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Balance at beginning of year |  | $ | 11,185 |  |  | $ | 10,972 |  |  | $ | 9,469 |
Increases related to prior year tax positions |  |  | 369 |  |  |  | 385 |  |  |  | 2,284 |
Decreases related to prior year tax positions |  |  | — |  |  |  | — |  |  |  | (143 | )
Increases related to current year tax positions |  |  | 1,700 |  |  |  | 2,900 |  |  |  | 1,430 |
Decreases related to lapse of statutes of limitation |  |  | (5,845 | ) |  |  | (3,072 | ) |  |  | (2,068 | )
Balance at end of year |  | $ | 7,409 |  |  | $ | 11,185 |  |  | $ | 10,972 |
During the years ended December 31, 2019 and 2018, the Company decreased its liability for uncertain tax positions by a total of $3.8 million and increased its liability for uncertain tax positions by $0.2 million, respectively, primarily related to additional taxes on current and prior year positions, partially offset by the expiration of statutes of limitation. In addition, the Company anticipates that its liability for uncertain tax positions will increase by $2.0 million over the next 12 months. The Company includes interest and penalties related to income tax liabilities in income tax expense. The impact to income tax expense related to penalties and interest was not material during the years December 31, 2019, 2018 and 2017. At December 31, 2019 and 2018, the Company’s accrued liability for interest and penalties related to income tax liabilities totaled $0.6 million and $1.1 million, respectively. The Company is currently subject to U.S. Federal and various state income tax examinations for the tax years 2015 through 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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