Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income tax expense is comprised of the following:

	Year Ended December 31,
(In thousands)	2021			2020		2019
Current taxes:
Federal	$	16,421		$	526	$	3,051
State		5,431			881		830
Deferred taxes:
Federal		5,658			14,114		11,853
State		(1,165	)		2,009		4,559
Total	$	26,345		$	17,530	$	20,293

Significant Components of Net Deferred Tax Liability and Asset

The following table sets forth the significant components of our net deferred tax liability and asset as of December 31, 2021 and 2020:

(In thousands)	December 31, 2021			December 31, 2020
Deferred tax asset:
Accruals and reserves	$	467		$	1,137
Deferred compensation		169			604
Share-based payments		1,279			2,909
Lease liability		2,936			4,993
Section 163(j) interest limitation		2,902			370
Interest rate swap		2,830			5,964
Unrealized losses		—			3,720
Net operating loss carryforwards		19,962			10,608
Capital loss carryforwards		145,330			149,608
		175,875			179,913
Valuation allowance		(148,754	)		(152,295	)
	$	27,121		$	27,618
Deferred tax liability:
Property and equipment	$	(5,614	)	$	(4,516	)
Intangible assets		(14,986	)		(14,868	)
Unrealized gains		(6,972	)		—
Right-of-use assets		(2,732	)		(4,633	)
		(30,304	)		(24,017	)
Net long-term deferred tax (liability) asset	$	(3,183	)	$	3,601

Difference between Income Tax Expense Computed using Statutory Federal Income Tax Rate and effective rate

The difference between income tax expense computed using the statutory federal income tax rate and the effective rate is as follows:

	Year Ended December 31,
(In thousands)	2021			2020			2019
Statutory federal income tax	$	28,081		$	15,624		$	13,757
State income taxes, less federal income tax benefit		6,675			3,607			3,048
Executive compensation		2,172			1,062			150
Change in valuation allowance		(14,275	)		(2,659	)		2,509
Share-based compensation		(2,644	)		426			210
State income tax credits		—			—			954
Capital loss expiration		7,139			—			—
Prior year tax adjustments		(970	)		(592	)		(464	)
Net impact of foreign operations		69			3			(9	)
Other		98			59			138
Income tax expense	$	26,345		$	17,530		$	20,293

Changes in Unrecognized Tax Benefits

The aggregate changes in the balance of unrecognized tax benefits, exclusive of interest, were as follows. There were no changes in unrecognized tax benefits during 2021.

(In thousands)
Unrecognized tax benefits at December 31, 2019	$	1,061
Increases related to prior year tax positions		84
Decreases due to lapse of statute of limitations		(20	)
Decreases related to Nutrisystem divestiture		(1,125	)
Unrecognized tax benefits at December 31, 2020	$	—