Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of income tax expense (benefit)

The components of income tax expense for the years ended December, 31 2019, 2018 and 2017 are as follows:



(in thousands)	2019		2018		2017
Current
Federal	$	22,408	$	32,042	$	20,215
State	2,070		3,868		1,869
	24,478		35,910		22,084
Deferred
Federal	10,595		160		1,797
State	1,566		1,106		521
	12,161		1,266		2,318
	$	36,639	$	37,176	$	24,402

Effective income tax rate reconciliation

A reconciliation of differences between the statutory U.S. federal income tax rate and the Company’s effective tax rate from continuing operations for the years ended December 31, 2019, 2018 and 2017 follows:



	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
State taxes, net of federal tax	2.2		2.6		2.9
Nondeductible capitalized transaction costs	—		—		0.2
Nondeductible compensation expense	0.5		0.2		0.2
Nondeductible (permanent) items	0.3		0.2		0.9
IRC Section 199 manufacturing deduction	—		0.1		(2.5	)
Changes in tax rates, including 2017 Tax Act	—		(0.2	)	(4.4	)
Shortfall / (windfall) tax benefit of stock compensation	0.9		(0.2	)	(2.3	)
Other items	0.1		—		(0.2	)
Effective tax rate	25.0	%	23.7	%	29.8	%

Components of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31, 2019 and 2018:



(in thousands)	2019			2018
Deferred tax assets related to:
Accounts receivable	$	2,162		$	2,278
Inventory	4,694			2,631
Accrued compensation	5,531			6,783
Insurance reserves	12,447			11,545
Stock-based compensation	4,183			3,399
Restructuring reserves	444			325
Other accrued liabilities	1,170			1,514
Federal net operating loss carryforward	15,326			16,349
State net operating loss carryforward	2,663			3,882
Operating lease liabilities	34,529			—
Other	707			1,915
	83,856			50,621
Valuation allowance	(145		)	(145		)
Total deferred tax assets	83,711			50,476

Deferred tax liabilities related to:
Goodwill and intangibles	(22,696		)	(21,946		)
Property and equipment	(41,364		)	(29,684		)
Operating lease assets	(32,873		)	—
Other assets	(1,973		)	(1,880		)
Total deferred tax liabilities	(98,906		)	(53,510		)
Net deferred tax liability	$	(15,195	)	$	(3,034	)

Changes in valuation allowance

The following table shows the changes in the amount of the Company’s valuation allowance:



(in thousands)	2019		2018		2017
Balance at January 1,	$	145	$	145	$	125
Additions charged to expense	—		—		20
Additions charged to Goodwill/Purchase Accounting	—		—		—
Deductions - other	—		—		—
Balance at December 31,	$	145	$	145	$	145