XML 28 R15.htm IDEA: XBRL DOCUMENT v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Deferred tax assets and liabilities as of December 31 are as follows:
 20252024
Deferred income tax assets:(in thousands)
Allowance for credit losses$337 $501 
Accrued expenses4,610 4,373 
Stock-based compensation746 187 
Insurance accruals15,407 14,153 
State net operating loss carryforward129 865 
Indirect tax benefits of unrecognized tax benefits941 1,091 
Other— — 
Total gross deferred tax assets22,170 21,170 
Less valuation allowance— — 
Net deferred tax assets22,170 21,170 
Deferred income tax liabilities: 
Property and equipment(116,139)(137,019)
Goodwill and amortizable intangibles(36,216)(38,621)
Prepaid expenses(2,091)(2,958)
Total gross deferred tax liability(154,446)(178,598)
Net deferred tax liabilities$(132,276)$(157,428)

The deferred tax amounts above have been classified in the accompanying consolidated balance sheets at December 31, 2025 and 2024 as follows:
 20252024
 (in thousands)
Noncurrent assets, net$1,353 $946 
Long-term liabilities, net(133,629)(158,374)
 $(132,276)$(157,428)

We have not recorded a valuation allowance against any deferred tax assets at December 31, 2025 and 2024.  In management’s opinion, it is more likely than not that we will be able to utilize these deferred tax assets in future periods as a result of our history of profitability, taxable income, and reversal of deferred tax liabilities.

For the years ended December 31, 2025, 2024, and 2023, the geographical breakdown of our income (loss) before income taxes is as follows:
202520242023
(in thousands)
United States$(68,296)$(38,119)$18,143 
Foreign168 1,444 1,710 
   (Loss) Income Before Income Taxes$(68,128)$(36,675)$19,853 

Income tax expense consists of the following:
 202520242023
 (in thousands)
Current income taxes:   
Federal$6,473 $19,790 $19,020 
State and Local2,857 3,513 3,543 
Foreign146 (57)596 
 9,476 23,246 23,159 
Deferred income taxes:  
Federal(20,541)(27,078)(14,500)
State and Local(4,239)(3,669)(3,311)
Foreign(371)548 (270)
 (25,151)(30,199)(18,081)
Total$(15,675)$(6,953)$5,078 

For the year ended December 31, 2025, following the adoption of ASU 2023-09, our tax provision and effective tax rate differed from the statutory federal rate as follows:
2025
(in thousands)(percent)
    Tax at U.S. Statutory Rate$(14,307)21.0 %
    State and Local Income Taxes (1)
(1,177)1.7 %
Foreign Tax Effects
    Mexico
        Statutory rate differential15 — %
        Other(275)0.4 %
Non-Taxable or Non-Deductible items:
    Per Diem1,203 (1.8)%
    Other Non- Taxable or Deductible items115 (0.1)%
Other Reconciling Items:
    Changes in Unrecognized Tax Benefits(816)1.2 %
    Return to Provision and Def. Rate Adjustment(433)0.6 %
Total Tax Provision and Effective rate$(15,675)23.0 %

(1) State Taxes of California, Florida, Georgia, Illinois, Pennsylvania, and Virginia made up the majority (greater than 50%) of the tax effect in this category.
For the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, tax expense differed from the statutory federal rate as follows:
 20242023
 
Federal tax at statutory rate (21%)$(7,702)$4,169 
State taxes, net of federal benefit(403)708 
Permanent differences to return1,758 1,740 
Return to provision adjustment(719)(1,482)
Uncertain income tax penalties and interest, net25 (152)
Foreign Rate Differential130 154 
Other(42)(59)
 $(6,953)$5,078 

At December 31, 2025 and December 31, 2024, we had a total of $4.5 million and $5.2 million in gross unrecognized tax benefits, respectively, included in long-term income taxes payable in the consolidated balance sheets. Of this amount, $3.5 million and $4.1 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate as of December 31, 2025 and December 31, 2024, respectively. Unrecognized tax benefits were a net decrease of $0.7 million and a net decrease of $0.3 million during the years ended December 31, 2025 and 2024, respectively. The increased reduction in 2025 associated with unrecognized tax benefits is due to an increase roll off associated with the underlying statue of limitations. This had the effect of increasing the effective rate in 2025 compared to 2024. The total net amount of accrued interest and penalties for such unrecognized tax benefits was $0.9 million and $1.0 million at December 31, 2025 and December 31, 2024, respectively, and is included in long-term income taxes payable in the consolidated balance sheets. Net interest and penalties included in income tax expense for the years ended December 31, 2025, 2024 and 2023 was an expense of $0.1 million, $0.3 million, and zero, respectively. Income tax expense is increased each period for the accrual of interest on outstanding positions and penalties when the uncertain tax position is initially recorded. Income tax expense is reduced in periods by the amount of accrued interest and penalties associated with reversed uncertain tax positions due to lapse of applicable statute of limitations, when applicable or when a position is settled. Income tax expense was reduced during the years ended December 31, 2025, 2024 and 2023 due to reversals of interest and penalties due to lapse of applicable statute of limitations and settlements, net of additions for interest and penalty accruals during the same period. These unrecognized tax benefits relate to risks associated with state income tax filing positions for our corporate subsidiaries.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
20252024
 (in thousands)
Balance at January 1, $5,197 $5,522 
Additions based on tax positions related to current year300 37 
Additions for tax positions of prior years79 — 
Reductions due to lapse of applicable statute of limitations(1,096)(362)
Balance at December 31,$4,480 $5,197 

The federal statute of limitations remains open for the years 2022 and forward. Tax years 2015 and forward are subject to audit by state tax authorities depending on the tax code and administrative practice of each state.
For the year ended December 31, 2025, following the adoption of ASU 2023-09, our tax payments net of refunds by jurisdiction are as follows:
2025
(in thousands)
Federal$6,750 
State
    Pennsylvania581 
    Other1,890 
Foreign81 
Income Taxes Paid Net of Amounts Refunded$9,302