XML 29 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes

Note 8: Income Taxes

​

The following table lists the components of the provision (benefit) for income taxes:

​

​

​

​

​

​

​

​

​

​

​

Years ended December 31, 

    

2021

    

2020

    

2019

(in thousands)

​

  

​

​

  

​

​

  

​

Current provision (benefit):

​

  

​

​

  

​

​

  

​

Federal

​

$

4,946

​

$

(74,841)

​

$

(3,548)

State

​

 

(1,387)

​

 

2,200

​

 

(3,185)

Foreign

​

 

784

​

 

1,247

​

 

2,968

Deferred provision (benefit):

​

 

​

​

 

​

​

 

  

Federal

​

 

2,287

​

 

(16,376)

​

 

(26,493)

State

​

 

2,601

​

 

(9,469)

​

 

4,268

Total income tax provision (benefit)

​

$

9,231

​

$

(97,239)

​

$

(25,990)

​

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted in 2020, among other changes, eliminated the taxable income limit for certain net operating losses (“NOL”). This allowed businesses to carryback NOLs arising in 2018, 2019 and 2020 to the five prior years, and provided a payment delay of employer payroll taxes during 2020 after the date of enactment. These provisions enabled a carryback of federal tax losses related to 2019 and 2020. The Company recorded net tax benefits totaling $29 million in 2020 related to certain of these provisions.

​

​

​

​

​

​

​

Reconciliation between the federal statutory rate and RPC’s effective tax rate is as follows:

​

​

​

​

​

​

​

​

​

Years ended December 31, 

    

2021

    

2020

    

2019

 

Federal statutory rate

​

21.0

%  

21.0

%  

21.0

%

State income taxes, net of federal benefit

​

2.9

​

1.5

​

(0.3)

 

Foreign taxes, net of federal benefit

​

5.1

​

(0.4)

​

(0.2)

​

Tax credits

 

(3.5)

 

0.1

 

0.3

​

Change in contingencies

​

8.6

​

—

 

—

​

Non-deductible expenses

 

(2.8)

 

(0.1)

 

(1.9)

​

Adjustments related to CARES Act

 

3.2

 

8.5

 

—

​

Change in estimated deferred rate

 

10.2

 

—

 

—

​

Adjustments related to vesting of restricted stock

 

7.1

 

(0.8)

 

(0.4)

​

Other

 

4.3

 

1.6

 

4.5

​

Effective tax rate

 

56.1

%  

31.4

%  

23.0

%

​

Significant components of the Company’s deferred tax assets and liabilities are as follows:

​

​

​

​

​

​

​

​

December 31, 

    

2021

    

2020

(in thousands)

​

  

​

​

  

​

Deferred tax assets:

 

​

  

 

​

  

Self-insurance

​

$

5,673

​

$

4,773

Pension

​

 

7,982

​

 

8,105

State net operating loss carryforwards

​

 

5,558

​

 

5,853

Allowance for credit losses

​

 

1,692

​

 

1,302

Stock-based compensation

​

 

2,532

​

 

2,291

Inventory reserve

​

​

2,868

​

​

3,226

Lease liability

​

​

5,620

​

​

7,125

Employee retention credit

​

​

1,360

​

​

—

Valuation allowance

​

​

(865)

​

​

(546)

All others

​

 

1,850

​

 

1,763

Gross deferred tax assets

​

 

34,270

​

 

33,892

Deferred tax liabilities:

​

 

​

​

 

​

Depreciation

​

 

(39,253)

​

 

(33,486)

Right of use asset

​

​

(5,834)

​

​

(6,392)

Goodwill amortization

​

 

(6,556)

​

 

(6,893)

All others

​

 

(376)

​

 

(453)

Gross deferred tax liabilities

​

 

(52,019)

​

 

(47,224)

Net deferred tax liabilities

​

$

(17,749)

​

$

(13,332)

​

The Company's current intention is to permanently reinvest funds held in our foreign subsidiaries outside of the U.S., with the possible exception of repatriation of funds that have been previously subject to U.S. federal and state taxation or when it would be tax effective through the utilization of foreign tax credits, or would otherwise create no additional U.S. tax cost.

Total income tax refunds, net were $20.9 million in 2021, $10.1 million in 2020, and $11.8 million in 2019. As of December 31, 2021, the Company had net operating losses related to 2020 federal income taxes of $82 million which were carried back to 2017 as allowed by the CARES Act. As of December 31, 2021, the Company has net operating loss carryforwards recorded related to state income taxes of $89.9 million (gross) that will expire between 2022 and 2040, net of a valuation allowance totaling $537 thousand. The valuation allowance is recorded and represents the tax-affected amount of loss carryforwards that the Company does not expect to utilize, against the corresponding deferred tax assets.

The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2021 and 2020.

During 2021, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to current year positions. This liability, if released, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

​

​

​

​

​

​

​

​

​

    

2021

    

2020

(in thousands)

​

​

​

​

​

​

Balance at January 1

​

$

—

​

$

2,215

Additions (reductions) based on tax positions related to the current year

 

​

1,737

 

​

—

Additions (reductions) for tax positions of prior years

 

​

—

 

​

(2,215)

Balance at December 31

​

$

1,737

​

$

—

​

It is reasonably possible that the amount of the unrecognized benefits with respect to the Company’s unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, expiration of stature of limitations, or conclusions of ongoing examinations or reviews. However, quantification of an estimated range cannot be made at this time.

The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In

general, the Company’s 2018 through 2020 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year.