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Income Taxes
 12 Months Ended
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.