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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various states and Canada. With a few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian examinations by tax authorities for years before 2014. The provision for income taxes by location of the taxing jurisdiction for the years ended December 31, 2021, 2020 and 2019 consisted of the following:
| 2021 |  | 2020 |  | 2019 |  |  |  |
Current: |  |  |  |  |  |  |  |  |
Federal | $ | 29,533 |  |  | $ | 11,914 |  |  | $ | 15,612 |  |  |  |  |
State | 7,918 |  |  | 3,907 |  |  | 4,681 |  |  |  |  |
| 37,451 |  |  | 15,821 |  |  | 20,293 |  |  |  |  |
Deferred: |  |  |  |  |  |  |  |  |
Federal | 209 |  |  | 922 |  |  | 5,766 |  |  |  |  |
State | 1,212 |  |  | (150) |  |  | 1,323 |  |  |  |  |
| 1,421 |  |  | 772 |  |  | 7,089 |  |  |  |  |
| $ | 38,872 |  |  | $ | 16,593 |  |  | $ | 27,382 |  |  |  |  |
A reconciliation of income taxes computed at the U.S. federal statutory income tax rate (21.0% for 2021, 2020 and 2019) to the provision for income taxes reflected in the Company’s Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019 is as follows:
| 2021 |  | 2020 |  | 2019 |  |  |  |
Tax expense at the statutory rate | $ | 32,542 |  |  | $ | 14,566 |  |  | $ | 23,038 |  |  |  |  |
State income taxes, net of federal income tax benefit | 7,448 |  |  | 2,602 |  |  | 4,594 |  |  |  |  |
Share-based compensation | (933) |  |  | (298) |  |  | (587) |  |  |  |  |
Other permanent differences | 31 |  |  | 48 |  |  | (5) |  |  |  |  |
Non-deductible compensation | 293 |  |  | 751 |  |  | 421 |  |  |  |  |
Change in income tax contingency reserves | (260) |  |  | (400) |  |  | — |  |  |  |  |
Federal income tax credits | (76) |  |  | (37) |  |  | (83) |  |  |  |  |
Other | (173) |  |  | (639) |  |  | 4 |  |  |  |  |
| $ | 38,872 |  |  | $ | 16,593 |  |  | $ | 27,382 |  |  |  |  |
The significant components of the deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows:
| December 31, 2021 |  | December 31, 2020 |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |
Accrued expenses | $ | 14,837 |  |  | $ | 12,095 |  |  |  |  |
Allowance for doubtful accounts | 839 |  |  | 577 |  |  |  |  |
Operating lease liabilities | 37,967 |  |  | 31,309 |  |  |  |  |
Share-based compensation | 3,769 |  |  | 3,554 |  |  |  |  |
Accruals for income tax contingencies | 154 |  |  | 166 |  |  |  |  |
Capital loss carryforwards | 4,230 |  |  | — |  |  |  |  |
Net operating loss carryforwards | 647 |  |  | 671 |  |  |  |  |
Total gross deferred tax assets | 62,443 |  |  | 48,372 |  |  |  |  |
Valuation allowance | (4,625) |  |  | (395) |  |  |  |  |
Total net deferred tax assets | 57,818 |  |  | 47,977 |  |  |  |  |
Deferred tax liabilities: |  |  |  |  |  |  |
Tax over book depreciation | 27,880 |  |  | 24,964 |  |  |  |  |
Prepaid expenses | 5,615 |  |  | 6,499 |  |  |  |  |
Operating lease right-of-use assets | 38,010 |  |  | 31,277 |  |  |  |  |
Goodwill | 20,502 |  |  | 17,368 |  |  |  |  |
Intangible assets | 9,218 |  |  | 9,855 |  |  |  |  |
Total deferred tax liabilities | 101,225 |  |  | 89,963 |  |  |  |  |
Net deferred tax liabilities | $ | (43,407) |  |  | $ | (41,986) |  |  |  |  |
The Company paid income taxes, net of refunds, of $35,766, $13,463 and $19,959 for the years ended December 31, 2021, 2020 and 2019, respectively. The sale of Pool resulted in a capital loss in the amount of $4,230, which expires in 2026. The Company concluded that it was more likely than not that the capital loss carryforward will not be realized and therefore, established a valuation allowance of $4,230 to reserve against its capital loss carryforward. The Company also maintains a valuation allowance to reserve against its state net operating loss carryforwards of $395. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company assessed the likelihood that its deferred tax assets would be recovered from estimated future taxable income and available tax planning strategies. In making this assessment, all available evidence was considered including economic climate, as well as reasonable tax planning strategies. The Company believes it is more likely than not that it will realize its remaining net deferred tax assets, net of the valuation allowance, in future years. As a result of the Towne acquisition, the Company had approximately $2,000 of federal net operating losses which the Company fully utilized in 2020. As of December 31, 2021, the Company had state net operating loss carryforwards of $13,819, and as of both December 31, 2020 and 2019, the Company had state net operating loss carryforwards of $16,926, that expire between 2021 and 2032. The state net operating loss carryforwards are limited to the future taxable income of separate legal entities. The valuation allowance on the state net operating loss carryforwards stayed the same in 2021, 2020 and 2019. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of and during the years ended December 31, 2021 and 2020 is as follows:
Balance at December 31, 2019 | $ | 987 |
Reductions for settlement with state taxing authorities | (466) |
Additions for tax positions of current year | 23 |
Balance at December 31, 2020 | 544 |
Reductions for settlement with state taxing authorities | (326) |
Additions for tax positions of current year | 23 |
Balance at December 31, 2021 | $ | 241 |
The Company recognizes income tax benefits from uncertain tax positions where the realization of the ultimate benefit is uncertain. At December 31, 2021 and 2020, the Company had $241 and $544, respectively, of unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized. At December 31, 2021 and 2020, the Company had accrued interest and penalties related to unrecognized tax benefits of $88 and $168, respectively. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in “Interest expense, net” and “Other operating expenses”, respectively.

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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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