Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

Provision for income taxes consisted of the following (in thousands):

	Years ended December 31,
	2020		2019		2018
Current
Federal	$	43,572	$	9,035	$	21,059
State	19,155		5,925		9,646
	62,727		14,960		30,705
Deferred
Federal	(4,963)		(3,508)		(5,954)
State	(1,657)		(3,285)		(2,391)
	(6,620)		(6,793)		(8,345)
Total provision for income taxes	$	56,107	$	8,167	$	22,360

Schedule of Components of Deferred Tax Assets (Liabilities)

Significant components of the Company's deferred tax assets (liabilities) as of December 31, 2020 and December 31, 2019 are shown below (in thousands). A valuation allowance of $15.5 million and $8.2 million as of December 31, 2020 and December 31, 2019, respectively, has been established against the Company's deferred tax assets related to loss entities the Company cannot consolidate under the Federal consolidation rules, as realization of these assets is uncertain. Valuation allowance increased by $7.3 million in 2020.

	2020		2019
Deferred tax assets
State taxes	$	3,932	$	1,111
Stock options	461		1,293
Accrued expenses	3,905		2,334
Allowance for bad debts	351		544
Investment in other entities	702		2,977
Net operating loss carryforward	20,758		13,850
Lease liability	4,979		3,568
Other	665		—
Deferred tax assets before valuation allowance	35,753		25,677
Valuation allowance	(15,517)		(8,192)
Net deferred tax assets	20,236		17,485
Deferred tax liabilities
Property and equipment	(661)		(927)
Acquired intangible assets	(24,661)		(29,195)
Right-of-use assets	(4,888)		(3,544)
481(a) adjustment	(985)		(1,623)
Other	—		(465)
Deferred tax liabilities	(31,195)		(35,754)
Net deferred liabilities	$	(10,959)	$	(18,269)

Schedule of Effective Income Tax Rate Reconciliation for Provision for Income Taxes

The provision for income taxes differs from the amount computed by applying the federal income tax rate as follows for the years ended December 31:

	Years ended December 31,
	2020		2019		2018
Tax provision at U.S. Federal statutory rates	21.0	%	21.0	%	21.0	%
State income taxes net of federal benefit	7.7		8.1		6.7
Non-deductible permanent items	0.3		3.3		1.3
Non-taxable entities	(0.2)		(2.7)		(0.7)
Stock-based compensation	0.3		(1.5)		(1.8)
Change in valuation allowance	3.2		3.2		—
Other	(1.0)		0.2		0.6
Effective income tax rate	31.3	%	31.6	%	27.1	%