Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of current and deferred income tax expense (benefit)

The current and deferred income tax (benefit) expense for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Current:
Federal	$	3,792	$	5,689	$	(197)
State	5,398		7,902		6,930
	9,190		13,591		6,733
Deferred:
Federal	25,330		(42,720)		12,205
State	6,719		(19,875)		5,831
	32,049		(62,595)		18,036
Income tax expense (benefit)	$	41,239	$	(49,004)	$	24,769

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, 2024, 2023 and 2022 is as follows:


	Year Ended December 31,
	2024		2023		2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	3.0	%	1.0	%	3.6	%
Equity-based compensation	1.6	%	(0.4)	%	(0.5)	%
Change in valuation allowance	3.8	%	(0.3)	%	—	%
Change in fair value of warrant liability	(0.6)	%	1.0	%	(3.7)	%
Goodwill impairment	1.4	%	(16.6)	%	—	%
Deferred tax only adjustment	(0.8)	%	1.1	%	(2.6)	%
Deferred tax impact of state effective tax rate changes	—	%	—	%	8.6	%
Other	0.9	%	—	%	(1.1)	%
Effective income tax rate	30.3	%	6.8	%	25.3	%

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities are comprised of the following at December 31, 2024 and 2023 (in thousands):


	December 31,
	2024		2023
Deferred income tax assets:
Accounts receivable	18,915		35,009
Goodwill and intangible assets	259,976		293,022
Inventory	1,321		1,926
Accruals	14,361		16,909
Net operating losses and credits	14,162		23,978
Transaction costs	522		455
Equity-based compensation	4,220		5,379
Excess business interest expense	64,429		46,273
Lease liability	36,158		37,069
Capital losses	—		792
Other	132		7
Total deferred income tax assets	414,196		460,819
Valuation allowance	(8,916)		(3,788)
Net deferred income tax assets	$	405,280	$	457,031
Deferred income tax liabilities:
Right-of-use assets	$	(34,841)	$	(36,011)
Contingent consideration	(2,328)		(2,112)
Investment in partnership	(812)		(582)
Unrealized gains	(779)		(1,479)
Equipment and other fixed assets	(52,015)		(70,993)
Total deferred income tax liabilities	(90,775)		(111,177)
Noncurrent net deferred income tax assets	$	314,505	$	345,854

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, 2024, 2023 and 2022 is as follows (in thousands).


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
Additions for tax positions acquired	12
Reductions due to lapse of statute of limitations	(3,868)
Balance, December 31, 2024	$	2,740