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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12 — Income Taxes The following table summarizes the provision for income taxes:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (amounts in thousands)
Current: |  |  |  |  |
Federal | $ | 9,120 |  |  | $ | 28,833 |  |  | $ | 15,041 |
State | 3,766 |  |  | 7,564 |  |  | 6,158 |
| $ | 12,886 |  |  | $ | 36,397 |  |  | $ | 21,199 |
Deferred: |  |  |  |  |
Federal | $ | 2,118 |  |  | $ | (4,903) |  |  | $ | (824) |
State | 956 |  |  | (990) |  |  | 140 |
| $ | 3,074 |  |  | $ | (5,893) |  |  | $ | (684) |
Tax provision | $ | 15,960 |  |  | $ | 30,504 |  |  | $ | 20,515 |
Deferred income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax basis of assets and liabilities. Significant components of the Company’s federal and state deferred tax asset and liability balances were as follows:
| Year Ended December 31,
| 2021 |  | 2020
| (in thousands)
Deferred tax assets: |  |  |
Allowance for doubtful accounts | $ | 16,124 |  |  | $ | 16,672 |
Deferred compensation | 9,587 |  |  | 8,239 |
Deferred payroll taxes under the CARES Act | 6,220 |  |  | 11,914 |
Accrued insurance claims | 6,252 |  |  | 5,189 |
Non-deductible reserves | 521 |  |  | 309 |
Leases | 247 |  |  | 181 |
Other | 1,854 |  |  | 1,466 |
| $ | 40,805 |  |  | $ | 43,970 |
Deferred tax liabilities: |  |  |
Expensing of housekeeping supplies | $ | (3,085) |  |  | $ | (3,322) |
Amortization of intangibles 1 | (2,118) |  |  | (574) |
Depreciation of property and equipment | (1,915) |  |  | (1,725) |
Other | (2,152) |  |  | (2,795) |
| $ | (9,270) |  |  | $ | (8,416) |
Net deferred tax assets | $ | 31,535 |  |  | $ | 35,554 |
1. The amortization of intangibles deferred tax liability includes less than $0.1 million of amortization of the goodwill recognized from the Company's acquisition of a prepackaged meal manufacturer. The goodwill related to the fourth quarter 2021 acquisition of a regional dining operator is not tax-deductible. Realization of the Company’s deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Management assesses the Company’s income tax positions and records tax benefits for all years subject to examination based upon an evaluation of the facts, circumstances, and information available at the reporting dates, which include historical operating results and expectations of future earnings. As such, management believes it is more likely than not that the deferred tax assets recorded will be realized to reduce future income taxes and therefore no valuation allowances are necessary. The table below provides a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Income tax expense computed at statutory rate | $ | 12,983 |  |  | $ | 27,129 |  |  | $ | 17,872 |
Increases (decreases) resulting from: |  |  |  |  |
State income taxes, net of federal tax benefit | 3,931 |  |  | 4,985 |  |  | 4,902 |
Federal jobs credits | (3,177) |  |  | (3,089) |  |  | (3,164) |
Tax exempt interest | (324) |  |  | (323) |  |  | (399) |
Share-based compensation | 1,072 |  |  | 1,323 |  |  | 298 |
Fines and penalties 1 | 1,294 |  |  | 20 |  |  | 20 |
Other, net | 181 |  |  | 459 |  |  | 986 |
Income tax expense | $ | 15,960 |  |  | $ | 30,504 |  |  | $ | 20,515 |
1. For both the years ended December 31, 2020 and 2019, the Company presented less than $0.1 million of fines and penalties within the Other, net caption. Such amounts have been reclassified to the Fines and penalties caption for comparative purposes. The Company performs an evaluation each period of its tax positions taken and expected to be taken in tax returns. The evaluation is performed on positions relating to tax years that remain subject to examination by major tax jurisdictions, the earliest of which is the tax year ended December 31, 2016. Based on the evaluation, the Company concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. Therefore, the table reporting on the change in the liability for unrecognized tax benefits during the years ended December 31, 2021 and 2020 is omitted as there is no activity to report in such account for the years ended December 31, 2021 or 2020.

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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 -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
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