Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The following table outlines the components of the Company’s income tax expense for the periods presented:


	For the Year Ended December 31,
	2024		2023		2022
			(in thousands)
Current income tax expense:
Federal	$	49,676	$	50,911	$	47,825
State and local	14,135		13,262		13,467
Total current income tax expense	63,811		64,173		61,292
Deferred income tax expense (benefit)	(4,315)		(6,286)		(8,639)
Total income tax expense	$	59,496	$	57,887	$	52,653

Reconciliations of the federal statutory income tax rate to the effective income tax rate are as follows:


	For the Year Ended December 31,
	2024		2023		2022
Federal income tax at statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, less federal income tax benefit	4.6		4.2		4.4
Permanent differences	0.7		0.3		0.2
Deferred income taxes — state income tax rate adjustment	—		(0.3)		(0.4)

Revision to prior years’ estimated taxes	0.3		0.4		(0.4)



Stock-based compensation	(0.0)		(0.5)		(0.5)

Non-controlling interest	(0.6)		(0.5)		(0.6)
Other	(0.3)		(0.7)		(0.5)
Effective income tax rate	25.7	%	23.9	%	23.2	%

The Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2024		2023
	(in thousands)
Deferred tax assets
Implicit discounts and adjustments	$	10,970	$	11,685
Compensation and benefit-related accruals	21,017		17,217
Professional malpractice liability insurance	6,872		7,838

Federal and state net operating loss and state tax credit carryforwards	3,602		3,288
Interest limitation carryforward	2,153		—
Stock awards	142		151

Operating lease liabilities	123,301		106,329


Research and experimental expenditures	9,048		7,929
Other	3,206		2,707
Deferred tax assets	180,311		157,144
Valuation allowance	(2,618)		(2,933)
Deferred tax assets, net of valuation allowance	$	177,693	$	154,211
Deferred tax liabilities


Depreciation and amortization	$	(80,947)	$	(76,776)

Operating lease right-of-use assets	(113,491)		(98,055)

Other	(4,223)		(2,744)
Deferred tax liabilities	(198,661)		(177,575)
Deferred tax liabilities, net of deferred tax assets	$	(20,968)	$	(23,364)

The Company’s deferred tax assets and liabilities are included in the consolidated balance sheet captions as follows:


	December 31,
	2024		2023
	(in thousands)
Other assets	$	4,412	$	—
Non-current deferred tax liability	(25,380)		(23,364)
	$	(20,968)	$	(23,364)

State net operating loss carryforwards expire and are subject to valuation allowances as follows: