Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes and Equity Loss in Investee and Gain (Loss) on Equity-Method Investments

The following table summarizes income (loss) before income taxes, equity loss in investee and gain (loss) on equity-method investments:

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
U.S. income before income taxes, equity loss in investee and gain (loss) on equity-method investments	$	681,403		$	291,739		$	679
Foreign loss before income taxes, equity loss in investee and gain (loss) on equity-method investments		(4,103	)		(55	)		(270	)
Income before income taxes, equity loss in investee and gain (loss) on equity-method investments	$	677,300		$	291,684		$	409

Income Tax Expense (Benefit)

Income tax expense consisted of the following:

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Current:
Federal	$	131,907		$	53,794		$	5
State		51,076			20,513			38
Total Current		182,983			74,307			43
Deferred:
Federal		(7,471	)		(248	)		(249	)
State		(717	)		(14	)		(280	)
Foreign		669			—			—
Change in valuation allowance		(669	)		(1,513	)		529
Total Deferred		(8,188	)		(1,775	)		—
Total income tax expense	$	174,795		$	72,532		$	43

Reconciliation of Difference between Federal Statutory Income Tax Rate and Effective Income Tax Rate

Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows:

	Year Ended December 31,
	2021			2020			2019
Tax provision at federal statutory rate		21.00	%		21.00	%		21.00	%
State taxes		5.99	%		5.68	%		-46.76	%
Foreign tax rate differential		0.00	%		0.00	%		13.83	%
Uncertain Tax Positions		0.05	%		0.13	%		0.00	%
Stock based compensation		-1.96	%		-0.92	%		-53.53	%
Return to provision		-0.17	%		-0.11	%		-57.11	%
Other permanent differences		1.09	%		0.02	%		3.87	%
Other		-0.14	%		-0.41	%		0.01	%
Change in valuation allowance		-0.10	%		-0.52	%		129.22	%
Effective tax rate		25.76	%		24.87	%		10.53	%

Summary of Elements of Deferred Tax Assets (Liabilities)

The following table summarizes the elements of the deferred tax assets (liabilities). Net deferred tax assets are included in other long-term assets in the Consolidated Balance Sheets.

	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Deferred tax assets
Accrued vacation and other accrued expenses	$	1,486		$	166		$	97
Provision for credit losses		2,755			513			180
Net operating losses		199			206			445
Stock based compensation		1,739			1,424			609
State income taxes		10,991			4,306			8
Foreign		1,808			1,220			545
Credits		—			—			680
Lease liability		1,643			226			643
Equity loss in investment		700			700			—
Other		599			89			—
Gross deferred tax assets		21,920			8,850			3,207
Less: Valuation allowance		(2,609	)		(2,021	)		(2,125	)
Net deferred tax assets		19,311			6,829			1,082
Deferred tax liabilities
Intangible assets		8,083			—			—
Depreciation		7,371			4,830			419
Right of use asset		1,640			224			633
Other		1,458			147			30
Total deferred tax liabilities		18,552			5,201			1,082
Net deferred tax assets	$	759		$	1,628		$	—

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the Company’s gross unrecognized tax benefits is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Balance at beginning of year	$	377	$	—	$	—
Increases to prior positions		—		141		—
Increases for current year positions		333		236		—
Balance at end of year	$	710	$	377	$	—