Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Significant Components of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows (amounts in thousands):
2020 2019
Deferred tax assets:
Allowance for uncollectible accounts $ 8,065  $ 8,181 
Accrued employee benefits 8,247  7,404 
Stock compensation 2,373  2,037 
Accrued self-insurance 6,596  6,688 
Acquisition costs 1,635  1,569 
Net operating loss carry forward 6,084  6,661 
Intangible asset impairment 10  14 
Lease payable 25,667  24,751 
Government stimulus advance 19,114  — 
Payroll tax 11,750  — 
Other 285  332 
Gross deferred tax assets 89,826  57,637 
Less: valuation allowance (3,876) (3,850)
Net deferred tax assets $ 85,950  $ 53,787 
Deferred tax liabilities:
Amortization of intangible assets (85,826) (73,512)
Tax depreciation in excess of book depreciation (14,065) (9,247)
Prepaid expenses (1,538) (1,287)
Non-accrual experience accounting method (743) (1,468)
Right of use asset (25,202) (24,044)
Other (5,813) (4,727)
Deferred tax liabilities (133,187) (114,285)
Net deferred tax liability $ (47,237) $ (60,498)
Income Tax Expense (Benefit) from Continuing Operations, Less Noncontrolling Interest
The components of the Company’s income tax expense from continuing operations, less noncontrolling interest, were as follows (amounts in thousands):
2020 2019 2018
Current:
Federal $ 37,253  $ 4,678  $ 892 
State 12,232  3,528  3,382 
49,485  8,206  4,274 
Deferred:
Federal (10,800) 14,549  15,383 
State (2,642) 3,852  2,742 
(13,442) 18,401  18,125 
Total income tax expense $ 36,043  $ 26,607  $ 22,399 
Statutory Rate and Provisions for Income Taxes
A reconciliation of the difference between the federal statutory tax rate and the Company's effective tax rate for income taxes for each period is as follows:
2020 2019 2018
Federal statutory tax rate 21.0  % 21.0  % 21.0  %
State income taxes, net of federal benefit 5.2  4.8  5.7 
Nondeductible expenses 1.9  1.8  2.6 
Uncertain tax position 1.5  (0.9) (1.3)
Cares Act Enactment (2.9) —  — 
Excess tax benefit (1.7) (2.5) (2.6)
Credits and other (0.6) (2.5) 0.7  %
Effective tax rate 24.4  % 21.7  % 26.1  %
Schedule of Unrecognized Tax Benefits
A reconciliation of the total amounts of unrecognized tax benefits follows:
Unrecognized tax benefits
As of January 1, 2019 $ 4,297 
Acquired unrecognized tax position — 
Increased (decreased) in unrecognized tax benefits as a result of:
Tax positions taken in the current year 873 
Lapse of statute of limitations (1,303)
As of December 31, 2019 $ 3,867 
Increased (decreased) in unrecognized tax benefits as a result of:
Tax positions taken in the current year 2,391 
Lapse of statute of limitations (55)
As of December 31, 2020 $ 6,203