Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of domestic and foreign components of income before income taxes

Income before provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2019		2018		2017
United States	$	107,639	$	111,002	$	105,555
Foreign		10,270		2,356		(272)
Total		117,909		113,358		105,283

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Current provision (benefit)
Federal	$	12,513	$	3,405	$	21,509
State		4,398		4,536		3,371
Foreign		2,954		674		(188)
		19,865		8,615		24,692
Deferred provision (benefit)
Federal		12,283		14,535		1,958
State		1,940		2,120		1,219
Foreign		(276)		(139)		(36)
		13,947		16,516		3,141
Change in valuation allowance		—		634		600
Total	$	33,812	$	25,765	$	28,433

Schedule of reconciliation of income tax expense compared to the amount of income tax expense that would result by applying U.S. federal statutory income tax rate to pre-tax income

	Year Ended December 31,
	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	21.0	%	35.0	%
Impact of U.S tax reform	—		1.1		(9.3)
State taxes, net of federal income tax impact	4.4		5.1		2.9
Tax credits	(1.7)		(5.3)		—
Income taxed at rates greater than U.S.	1.1		0.4		(0.2)
Domestic production activities deduction	—		—		(2.3)
Nondeductible meals & entertainment	3.0		2.9		2.8
Nondeductible compensation	0.7		0.2		0.1
Other items	0.6		(0.4)		(0.8)
Effective tax rate excluding income attributable to noncontrolling interests	29.1		25.0		28.2
Impact of income from noncontrolling interests on effective tax rate	(0.4)		(2.3)		(1.2)
Effective tax rate	28.7	%	22.7	%	27.0	%

Schedule of tax effect of temporary differences that give rise to deferred income taxes

The tax effect of temporary differences that give rise to deferred income taxes are as follows (in thousands):

	December 31,
	2019		2018
Deferred tax assets:
Accrued compensation	$	3,705	$	4,999
Accrued workers compensation		9,939		10,309
Net operating losses		40,919		34,615
Disallowed interest		533		1,908
Capital loss carryforward		10,126		10,796
Deferred rent		126		1,552
Lease liabilities		62,023		—
Insurance reserves		3,146		3,737
Loss reserves		2,276		2,064
Tax credit		825		1,505
State income taxes		1,193		1,045
Other		3,436		2,146
Total deferred tax assets		138,247		74,676
Deferred tax liabilities
Depreciation and amortization		(63,824)		(56,670)
Prepaid expenses and other		(1,839)		(777)
Lease assets		(61,417)		—
Total deferred tax liabilities		(127,080)		(57,447)
Valuation allowance		(27,886)		(23,938)
Net deferred tax liabilities	$	(16,719)	$	(6,709)

Schedule of reconciliation of the beginning and ending amounts and aggregate changes in the balance of unrecognized tax benefits

A reconciliation of the beginning and ending and aggregate changes in the gross balances of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2019		2018		2017
Beginning balance	$	1,330	$	592	$	—
Increases in balances for tax positions taken during the current year		298		146		592
Increases in balances for tax positions taken during prior years		19		2,666		—
Settlements and effective settlements with tax authorities		(649)		(1,979)		—
Lapse of statute of limitations		(151)		(95)		—
Total	$	847	$	1,330	$	592