INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10 – INCOME TAXES

The components of the Company’s United States and foreign provision for income taxes were as follows for the years ended December 31 (in millions):

	2023			2022		2021
Current:
Federal	$	5.0		$	6.2	$	4.6
State		3.7			1.6		5.4
Foreign		0.5			1.2		0.9
Total current taxes		9.2			9.0		10.9
Deferred:
Federal		(2.2	)		8.7		11.0
State		(1.9	)		0.2		3.4
Foreign		2.2			1.7		0.7
Total deferred taxes		(1.9	)		10.6		15.1
Income tax expense	$	7.3		$	19.6	$	26.0

A reconciliation between the effective income tax rate and the United States statutory income tax rate were as follows for the years ended December 31 (in millions):

	2023			2022			2021
Income tax expense at United States statutory income tax rate	$	(2.2	)	$	14.6		$	17.2
Federal income tax effects of:
State income tax expense, net of federal benefit		1.4			1.0			6.9
Impairment of goodwill		2.8			1.2			—
Foreign tax rate differential		0.4			0.5			0.3
Driver per diem		1.0			—			—
Global intangible low-taxed income inclusion		0.4			0.7			—
Other nondeductible expenses		0.4			0.7			(0.1	)
Nondeductible officer compensation		1.8			1.6			1.8
Write-off of foreign deferred tax assets		—			10.5			—
Change in valuation allowance		—			(10.2	)		—
Change in fair value of warrant liability		—			(1.0	)		(0.3	)
Stock compensation		0.2			0.1			(0.5	)
Tax credits		(0.2	)		(0.1	)		(0.1	)
Return-to-provision adjustments		(0.3	)		0.1			0.3
Other		1.6			(0.1	)		0.5
Income tax expense	$	7.3		$	19.6		$	26.0
Effective tax rate		(70.2	)%		28.1	%		31.7	%

The decrease in the effective tax rate for the year ended December 31, 2023 compared to the year ended December 31, 2022 is primarily due to the impact of various nondeductible items on pretax loss which resulted in taxable income, primarily related to goodwill impairment, as well as officer compensation and other expenses.

The effects of temporary differences that give rise to significant elements of deferred tax assets and liabilities were as follows at December 31 (in millions):

	2023			2022
Deferred tax assets
Accrued expenses	$	7.7		$	6.8
Vacation accrual		0.7			0.5
Accounts receivable		1.1			0.8
Net operating losses		0.7			0.4
Deferred start-up costs		0.9			1.0
Stock based compensation		3.5			3.5
Operating lease liabilities		26.8			28.8
Interest expense limitation carryforward		11.9			6.1
		53.3			47.9
Valuation allowance		(0.4	)		(0.3	)
Total deferred tax assets		52.9			47.6
Deferred tax liabilities
Prepaid expenses		(4.1	)		(3.2	)
Intangible assets		(14.5	)		(15.9	)
Property and equipment		(102.5	)		(96.2	)
Right of use asset		(25.4	)		(27.3	)
Total deferred tax liabilities		(146.5	)		(142.6	)
Net deferred tax liability	$	(93.6	)	$	(95.0	)

As of December 31, 2023, the Company’s valuation allowance was $0.4 million against a portion of state net operating losses, that, in the judgment of management, are not more-likely-than-not to be realized. As of December 31, 2022, the Company’s valuation allowance was $0.3 million against a portion of state net operating losses, that, in the judgment of management, were not more-likely-than-not to be realized. The current year increase relates to additional valuation recorded on state net operating losses not expected to be realized prior to expiration. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends upon future reversal of taxable and deductible temporary differences, the generation of future taxable income, and the feasibility of ongoing tax planning strategies during the periods in which those temporary differences are deductible.

At December 31, 2023, the Company does not have any U.S. federal or foreign net operating loss carry forwards. On an after-tax basis, the Company has state net operating losses of $0.7 million. These loss carryforwards begin expiring in 2028.

The Company had no uncertain tax positions as of December 31, 2023 and 2022. The Company is no longer subject to United States federal income tax examinations by tax authorities for years before 2020; however, federal net operating loss carry forwards from years prior to 2020 that were utilized in 2021 remain subject to review and adjustment by tax authorities. The Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2020; however, state and foreign net operating loss carryforwards from years prior to 2020 that were utilized in 2021 and 2022 remain subject to review and adjustment by tax authorities.