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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense on the consolidated statements of income was as follows:
Years ended December 31,
202420232022
(In thousands)
Current:
Federal$36,964 $39,468 $32,198 
State10,933 8,923 7,530 
Total current
47,897 48,391 39,728 
Deferred:
Federal1,214 (2,629)1,066 
State and city
412 (476)(6)
Total deferred
1,626 (3,105)1,060 
Total income tax expense
$49,523 $45,286 $40,788 
Components of deferred tax assets and deferred tax liabilities as of December 31 were as follows:
20242023
(In thousands)
Deferred tax assets:
Operating lease liabilities
$16,808 $13,951 
Compensation-related13,573 10,256 
Research and development costs
5,596 3,861 
Workers’ compensation reserve
1,878 1,497 
Employee benefit plans costs
1,614 1,046 
Bad debt reserve
1,437 1,760 
Capital investment overhead on contracts
535 458 
Other2,764 4,076 
Total deferred tax assets
44,205 36,905 
Deferred tax liabilities:
Basis differences on property, plant and equipment
(17,664)(17,173)
Operating lease right-of-use-assets
(16,672)(13,825)
Intangible assets
(10,912)(10,372)
Prepaid expenses
(6,597)(1,256)
Total deferred tax liabilities
(51,845)(42,626)
Valuation allowance
(521)(814)
Net deferred income tax liabilities
$(8,161)$(6,535)
As of both December 31, 2024 and 2023, the Company had various state income tax net operating loss carryforwards of $16.5 million. The state income tax net operating loss carryforwards are due to expire beginning in 2031. It is likely that a portion of the benefit from certain carryforwards will not be realized; therefore, valuation allowances have been provided. As of December 31, 2024 and 2023, the total valuation allowance on deferred tax assets, related to the state income tax net operating loss carryforwards, was approximately $0.5 million and $0.8 million, respectively. The decrease in the Company’s valuation allowance as of December 31, 2024, was primarily the result of a change in state tax rates. Changes in tax regulations or assumptions regarding current and future taxable income could require an adjustment to the valuation allowance in the future.
Total income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before taxes. The reasons for this difference were as follows:
Years ended December 31,
202420232022
Amount
%
Amount
%
Amount
%
(In thousands, except percentages)
Computed tax at federal statutory rate
$40,518 21.0 %$38,328 21.0 %$34,769 21.0 %
Increases (reductions) resulting from:
State income taxes, net of federal income tax
9,085 4.7 7,714 4.2 6,423 3.9 
Tax compliance and uncertain tax positions
(751)(0.3)(1,506)(0.8)(275)(0.2)
Other671 0.3 750 0.4 (129)(0.1)
Total income tax expense
$49,523 25.7 %$45,286 24.8 %$40,788 24.6 %
Reconciliations of unrecognized tax benefits were as follows as of December 31:
202420232022
(In thousands)
Balance at beginning of year
$656 $570 $513 
Additions based on tax positions related to current year
145 145 145 
Additions for tax positions of prior years
78 279 15 
Reductions for tax positions of prior years
— (60)(35)
Reductions resulting from a lapse of the applicable statute of limitations periods
(147)(278)(68)
Balance at end of year
$732 $656 $570 
The Company’s accrued interest and penalties and recognized interest and penalties related to unrecognized tax benefits for each of the years ended December 31, 2024, 2023, and 2022, were immaterial. The liability for all unrecognized tax benefits is recorded in Taxes payable and accrued interest and penalties is recorded in Other accrued liabilities on the consolidated balance sheets.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for years ending prior to 2021. With few exceptions, as of December 31, 2024, the Company is no longer subject to state and local income tax examinations by tax authorities for years ending prior to 2021.