Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense

Income tax expense on the consolidated statements of income was as follows:


	Years ended December 31,
	2024		2023		2022
	(In thousands)
Current:
Federal	$	36,964	$	39,468	$	32,198
State	10,933		8,923		7,530
Total current	47,897		48,391		39,728
Deferred:
Federal	1,214		(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

Schedule of Deferred Tax Assets and Liabilities

Components of deferred tax assets and deferred tax liabilities as of December 31 were as follows:


	2024		2023
	(In thousands)
Deferred tax assets:
Operating lease liabilities	$	16,808	$	13,951
Compensation-related	13,573		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
Other	2,764		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)

Schedule of Effective Income Tax Rate Reconciliation

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,
	2024				2023				2022
	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)
Other	671		0.3		750		0.4		(129)		(0.1)
Total income tax expense	$	49,523	25.7	%	$	45,286	24.8	%	$	40,788	24.6	%

Schedule of Unrecognized Tax Benefits

Reconciliations of unrecognized tax benefits were as follows as of December 31:


	2024		2023		2022
	(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