Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of provision for income taxes relating to continuing operations

Our provision for income taxes relating to continuing operations consists of the following (in thousands):

	December 31,
	2018		2017		2016
Current tax provision—
Federal	$	22,728	$	35,434	$	32,721
State and Puerto Rico		8,589		6,054		4,683
Total current		31,317		41,488		37,404
Deferred tax provision (benefit)—
Federal		4,347		5,391		(2,101)
State and Puerto Rico		109		(1,213)		862
Total deferred		4,456		4,178		(1,239)
Provision for income taxes	$	35,773	$	45,666	$	36,165

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results

The provision for income taxes for the years ended December 31, 2018,  2017 and 2016 resulted in effective tax rates on continuing operations of 24.1%,  45.2% and 35.8%, respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands):

	December 31,
	2018			2017			2016
Federal statutory rate of—		21	%		35	%		35	%
Income taxes at the federal statutory rate	$	31,222		$	35,328		$	35,371
Increases (decreases) resulting from—
Net state income taxes		7,470			2,838			4,262
Valuation allowances		(2,852)			91			(1,254)
Net unrecognized tax benefits		(15)			153			20
Nondeductible expenses		1,926			1,134			825
R&D tax credits		(2,726)			—			—
Net operating loss carryforwards		2,225			—			—
Stock-based compensation deductions		(1,293)			(1,320)			(885)
Domestic production activities deduction		—			(2,112)			(2,026)
Corporate tax rate reduction to 21%		—			9,478			—
Other		(184)			76			(148)
Provision for income taxes	$	35,773		$	45,666		$	36,165

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the balance sheet

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the balance sheets are as follows (in thousands):

	Year Ended
	December 31,
	2018		2017
Deferred tax assets—
Accounts receivable and allowance for doubtful accounts	$	1,445	$	715
Stock-based compensation		2,538		2,297
Accrued liabilities and expenses		19,449		19,555
Net operating loss carryforwards		3,242		6,007
Intangible assets		5,071		2,272
Other		550		544
Subtotal		32,295		31,390
Valuation allowances		(648)		(3,500)
Total deferred tax assets		31,647		27,890
Deferred tax liabilities—
Property and equipment		(10,488)		(4,668)
Long-term contracts		(688)		(625)
Goodwill		(3,864)		(1,572)
Other		(360)		(322)
Total deferred tax liabilities		(15,400)		(7,187)
Net deferred tax assets	$	16,247	$	20,703

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and liabilities reflected above are included in the consolidated balance sheets as follows (in thousands):

	December 31,
	2018		2017
Deferred tax assets	$	17,634	$	22,966
Deferred tax liabilities	$	1,387	$	2,263

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):

	Year Ended
	December 31,
	2018		2017		2016
Balance at beginning of year	$	8,929	$	240	$	240
Additions based on tax positions related to current year		—		8,689		—
Additions based on tax positions related to prior years		2,726		—		—
Reductions for tax positions related to prior years		(8,689)		—		—
Reductions for settlements with tax authorities		—		—		—
Balance at end of year	$	2,966	$	8,929	$	240