XML 71 R18.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 9 - Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code and resulting in the reduction in the U.S. statutory corporate tax rate from 35% to 21%. During 2018, we finalized certain tax positions when we filed our 2017 federal tax return and determined that no material adjustments were necessary. The provision for income taxes is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,806 |  |  | $ | 7,412 |  |  | $ | 5,080 |
State |  |  | 1,381 |  |  |  | 408 |  |  |  | 89 |
|  |  | 10,187 |  |  |  | 7,820 |  |  |  | 5,169 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (774 | ) |  |  | (824 | ) |  |  | 6,310 |
State |  |  | 3,433 |  |  |  | (289 | ) |  |  | (2,271 | )
|  |  | 2,659 |  |  |  | (1,113 | ) |  |  | 4,039 |
Total provision |  | $ | 12,846 |  |  | $ | 6,707 |  |  | $ | 9,208 |
Deferred income tax assets and liabilities consist of the following components (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Workers' compensation claims liabilities |  | $ | 12,151 |  |  | $ | 9,261 |
MCC accrual |  |  | 1,458 |  |  |  | 2,234 |
Customer incentives |  |  | 333 |  |  |  | 2,718 |
Deferred compensation |  |  | 1,988 |  |  |  | 1,541 |
Equity based compensation |  |  | 913 |  |  |  | 994 |
Tax effect of unrealized losses, net |  |  | — |  |  |  | 1,966 |
State credit carryforward |  |  | 923 |  |  |  | 988 |
State loss carryforward |  |  | 33 |  |  |  | 2,396 |
Operating lease liability |  |  | 5,920 |  |  |  | — |
Other |  |  | 1,345 |  |  |  | 1,703 |
|  |  | 25,064 |  |  |  | 23,801 |
Less: valuation allowance |  |  | 173 |  |  |  | 264 |
|  |  | 24,891 |  |  |  | 23,537 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | (3,421 | ) |  |  | (4,258 | )
Tax amortization of goodwill |  |  | (10,312 | ) |  |  | (9,948 | )
Tax effect of unrealized gains, net |  |  | (1,058 | ) |  |  | — |
Operating lease right-of-use |  |  | (5,588 | ) |  |  | — |
Other |  |  | (1,724 | ) |  |  | (873 | )
|  |  | (22,103 | ) |  |  | (15,079 | )
Net deferred income tax assets |  | $ | 2,788 |  |  | $ | 8,458 |
The effective tax rate differed from the U.S. statutory federal tax rate due to the following:
|  | Year Ended December 31, |  |
|  | 2019 |  |  |  | 2018 |  |  |  | 2017 |  |
Statutory federal tax rate |  |  | 21.0 |  | % |  |  | 21.0 |  | % |  |  | 35.0 |  | %
State taxes, net of federal benefit |  |  | 6.2 |  |  |  |  | 0.3 |  |  |  |  | (4.0 | ) |
Adjustment for final positions on filed returns |  |  | (0.2 | ) |  |  |  | (1.1 | ) |  |  |  | (1.1 | ) |
Nondeductible expenses and other, net |  |  | 1.3 |  |  |  |  | 1.2 |  |  |  |  | 1.5 |  |
Federal and state tax credits |  |  | (7.5 | ) |  |  |  | (6.4 | ) |  |  |  | (7.7 | ) |
Change in federal tax rate |  |  | — |  |  |  |  | — |  |  |  |  | 3.2 |  |
Other, net |  |  | 0.2 |  |  |  |  | — |  |  |  |  | (0.1 | ) |
|  |  | 21.0 |  | % |  |  | 15.0 |  | % |  |  | 26.8 |  | %
Under ASC 740, “Income Taxes,” management evaluates the realizability of the deferred tax assets on a quarterly basis under a “more-likely than not” standard. As part of this evaluation, management reviews all evidence both positive and negative to determine if a valuation allowance is needed. One component of this analysis is to determine whether the Company was in a cumulative loss position for the most recent 12 quarters. The Company was in a cumulative income position for the 12 quarters ended at both December 31, 2019 and December 31, 2018. The Company’s realization of a portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. The Company is subject to income taxes in U.S. federal and multiple state and local tax jurisdictions. The Internal Revenue Service is examining the Company’s federal tax returns for the years ended December 31, 2011, 2012, 2013 and 2014. In the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for years before 2011. As of December 31, 2019, 2018 and 2017, the Company had no material unrecognized tax benefits. A portion of the consolidated income the Company generates is not subject to state income tax. Depending on the percentage of this income as compared to total consolidated income, the Company's state effective rate could fluctuate from expectations. At December 31, 2019, the Company had state net operating loss carryforwards of approximately $0.7 million, which begin to expire in tax years ending on or after December 31, 2025, unless utilized. At December 31, 2019, the Company did not have a federal general business tax credit carryforward or an alternative minimum tax credit carryforward.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration