Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of current and deferred income tax expense (benefit)

The current and deferred income tax (benefit) expense for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	5,689	$	(197)	$	2,356
State	7,902		6,930		8,070
	13,591		6,733		10,426
Deferred:
Federal	(42,720)		12,205		22,891
State	(19,875)		5,831		(511)
	(62,595)		18,036		22,380
Total income tax (benefit) expense	$	(49,004)	$	24,769	$	32,806

Schedule of reconciliation of the effective income tax rate

A reconciliation of the effective income tax rate with the applicable statutory federal income tax rate for the years ended December 31, 2023, 2022 and 2021 is as follows:


	Year Ended December 31,
	2023		2022		2021
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.0	%	3.6	%	3.1	%
Equity-based compensation	(0.4)	%	(0.5)	%	(1.9)	%
Change in valuation allowance	(0.3)	%	—	%	0.1	%
Change in fair value of warrant liability	1.0	%	(3.7)	%	(5.9)	%
Change in fair value of contingent consideration	—	%	—	%	(1.2)	%
Goodwill impairment	(16.6)	%	—	%	—	%
Deferred tax only adjustment	1.1	%	(2.6)	%	0.3	%
Deferred tax impact of state effective tax rate changes	—	%	8.6	%	—	%
Other	—	%	(1.1)	%	1.7	%
Effective income tax rate	6.8	%	25.3	%	17.2	%

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities are comprised of the following at December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Deferred income tax assets:
Accounts receivable	$	35,009	$	37,363
Goodwill and intangible assets	293,022		262,501
Investment in partnership	—		171
Inventory	1,926		1,841
Accruals	16,909		9,207
Net operating losses and credits	23,978		35,459
Transaction costs	455		417
Equity-based compensation	5,379		6,101
Excess business interest expense	46,273		27,918
Lease liability	37,069		35,431
Capital losses	792		817
Other	7		—
Total deferred income tax assets	460,819		417,226
Valuation allowance	(3,788)		(1,812)
Net deferred income tax assets	$	457,031	$	415,414
Deferred income tax liabilities:
Right-of-use assets	$	(36,011)	$	(34,201)
Contingent consideration	(2,112)		(2,200)
Investment in partnership	(582)		—
Unrealized gains	(1,479)		(2,950)
Equipment and other fixed assets	(70,993)		(94,277)
Total deferred income tax liabilities	(111,177)		(133,628)
Noncurrent net deferred income tax assets	$	345,854	$	281,786

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands).


Balance, December 31, 2020	$	1,947
Additions for tax positions acquired	2,100
Balance, December 31, 2021	4,047
Additions for tax positions acquired	2,670
Reductions due to lapse of statute of limitations	(78)
Balance, December 31, 2022	6,639
Additions for tax positions acquired	—
Reductions due to lapse of statute of limitations	(43)
Balance, December 31, 2023	$	6,596