XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Deferred tax assets and liabilities as of December 31 are as follows:
|  | 2020 |  | 2019
Deferred income tax assets: |  | (in thousands)
Allowance for doubtful accounts |  | $ | 258 |  |  | $ | 262 |
Accrued expenses |  | 6,353 |  |  | 3,892 |
Stock-based compensation |  | 126 |  |  | 178 |
Insurance accruals |  | 14,283 |  |  | 15,054 |
State net operating loss carryforward |  | — |  |  | 2,618 |
Federal net operating loss carryover and credits |  | — |  |  | 8,793 |
Indirect tax benefits of unrecognized tax benefits |  | 1,037 |  |  | 1,052 |
Other |  | 221 |  |  | 3 |
Total gross deferred tax assets |  | 22,278 |  |  | 31,852 |
Less valuation allowance |  | — |  |  | — |
Net deferred tax assets |  | 22,278 |  |  | 31,852 |
Deferred income tax liabilities: |  |  |  |
Property and equipment |  | (98,355) |  |  | (101,843) |
Goodwill and amortizable intangibles |  | (18,959) |  |  | (15,939) |
Prepaid expenses |  | (804) |  |  | (1,762) |
|  | (118,118) |  |  | (119,544) |
Net deferred tax liability |  | $ | (95,840) |  |  | $ | (87,692) |
The deferred tax amounts above have been classified in the accompanying consolidated balance sheets at December 31, 2020 and 2019 as follows:
|  | 2020 |  | 2019
|  | (in thousands)
Noncurrent assets, net |  | $ | 8,164 |  |  | $ | 6,006 |
Long-term liabilities, net |  | (104,004) |  |  | (93,698) |
|  | $ | (95,840) |  |  | $ | (87,692) |
We have not recorded a valuation allowance against any deferred tax assets at December 31, 2020 and 2019. In management’s opinion, it is more likely than not that we will be able to utilize these deferred tax assets in future periods as a result of our history of profitability, taxable income, and reversal of deferred tax liabilities. Income tax expense consists of the following:
|  | 2020 |  | 2019 |  | 2018
|  | (in thousands)
Current income taxes: |  |  |  |  |  |
Federal |  | $ | 10,835 |  |  | $ | 14,122 |  |  | $ | 11,985 |
State |  | 4,472 |  |  | 5,698 |  |  | 4,498 |
|  | 15,307 |  |  | 19,820 |  |  | 16,483 |
Deferred income taxes: |  |  |  |  |  |
Federal |  | 736 |  |  | 5,595 |  |  | 5,537 |
State |  | 7,412 |  |  | (1,204) |  |  | (2,780) |
|  | 8,148 |  |  | 4,391 |  |  | 2,757 |
Total |  | $ | 23,455 |  |  | $ | 24,211 |  |  | $ | 19,240 |
The income tax provision differs from the amount determined by applying the U.S. federal tax rate as follows:
|  | 2020 |  | 2019 |  | 2018
|  | (in thousands)
Federal tax at statutory rate (21%, 21%, 21% respectively) |  | $ | 19,795 |  |  | $ | 20,406 |  |  | $ | 19,302 |
State taxes, net of federal benefit |  | 5,678 |  |  | 3,561 |  |  | 2,200 |
Permanent differences to return |  | 446 |  |  | 540 |  |  | 408 |
Return to provision adjustment |  | (2,615) |  |  | (392) |  |  | (1,327) |
Uncertain income tax penalties and interest, net |  | (73) |  |  | 289 |  |  | (1,067) |
Other |  | 224 |  |  | (193) |  |  | (276) |
|  | $ | 23,455 |  |  | $ | 24,211 |  |  | $ | 19,240 |
At December 31, 2020 and December 31, 2019, we had a total of $4.9 million and $5.0 million in gross unrecognized tax benefits, respectively, included in long-term income taxes payable in the consolidated balance sheets. Of this amount, $3.9 million and $4.0 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate as of December 31, 2020 and December 31, 2019, respectively. Unrecognized tax benefits were a net decrease of $0.1 million and a net increase of $0.4 million during the years ended December 31, 2020 and 2019, respectively, due mainly to the expiration of certain statutes of limitation net of additions and settlements with respective states. This had the effect of decreasing the effective state tax rate in 2020 and increasing the effective state rate during 2019. The total net amount of accrued interest and penalties for such unrecognized tax benefits was $0.9 million and $0.9 million at December 31, 2020 and December 31, 2019, respectively, and is included in income taxes payable in the consolidated balance sheets. Net interest and penalties included in income tax expense for the years ended December 31, 2020, 2019 and 2018 was approximately $0.1 million, zero, and a benefit of $1.4 million, respectively. Income tax expense is increased each period for the accrual of interest on outstanding positions and penalties when the uncertain tax position is initially recorded. Income tax expense is reduced in periods by the amount of accrued interest and penalties associated with reversed uncertain tax positions due to lapse of applicable statute of limitations, when applicable or when a position is settled. Income tax expense was reduced during the years ended December 31, 2020, 2019 and 2018 due to reversals of interest and penalties due to lapse of applicable statute of limitations and settlements, net of additions for interest and penalty accruals during the same period. These unrecognized tax benefits relate to risks associated with state income tax filing positions for our corporate subsidiaries. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2020 |  | 2019
| (in thousands)
Balance at January 1, | $ | 5,010 |  |  | $ | 4,585 |
Additions based on tax positions related to current year | 767 |  |  | 1,138 |
Additions for tax positions of prior years | — |  |  | 124 |
Reductions for tax positions of prior years | (216) |  |  | — |
Reductions due to lapse of applicable statute of limitations | (428) |  |  | (701) |
Settlements | (196) |  |  | (136) |
Balance at December 31, | $ | 4,937 |  |  | $ | 5,010 |
A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. We do not have any outstanding litigation related to tax matters. At this time, management’s best estimate of the reasonably possible change in the amount of gross unrecognized tax benefits is approximately no change to an increase of $1.0 million during the next twelve months, due to the combination of expiration of certain statute of limitations and estimated additions. The federal statute of limitations remains open for the years 2017 and forward. Tax years 2010 and forward are subject to audit by state tax authorities depending on the tax code and administrative practice of each state.

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