Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019 and 2018 were as follows (amounts in thousands):
 
 
2019
 
2018
Deferred tax assets:
 
 
 
 
Allowance for uncollectible accounts
 
$
8,181

 
$
8,645

Accrued employee benefits
 
7,404

 
6,038

Stock compensation
 
2,037

 
2,322

Accrued self-insurance
 
6,688

 
8,656

Acquisition costs
 
1,569

 
1,413

Net operating loss carry forward
 
6,661

 
9,147

Intangible asset impairment
 
14

 
18

Lease payable
 
24,751

 

Other
 
332

 
1,021

Gross deferred tax assets
 
57,637

 
37,260

Less: valuation allowance
 
(3,850
)
 
(3,574
)
Net deferred tax assets
 
$
53,787

 
$
33,686

Deferred tax liabilities:
 
 
 
 
Amortization of intangible assets
 
(73,512
)
 
(64,001
)
Tax depreciation in excess of book depreciation
 
(9,247
)
 
(7,693
)
Prepaid expenses
 
(1,287
)
 
(1,134
)
Non-accrual experience accounting method
 
(1,468
)
 
(602
)
Right of use asset
 
(24,044
)
 

Other
 
(4,727
)
 
(3,562
)
Deferred tax liabilities
 
(114,285
)
 
(76,992
)
Net deferred tax liability
 
$
(60,498
)
 
$
(43,306
)

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):
 
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
 
Federal
 
$
4,678

 
$
892

 
$
12,798

State
 
3,528

 
3,382

 
2,621

 
 
8,206

 
4,274

 
15,419

Deferred:
 
 
 
 
 
 
Federal
 
14,549

 
15,383

 
(6,273
)
State
 
3,852

 
2,742

 
1,798

 
 
18,401

 
18,125

 
(4,475
)
Total income tax expense
 
$
26,607

 
$
22,399

 
$
10,944



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:
 
 
2019
 
2018
 
2017
Federal statutory tax rate
 
21.0
 %
 
21.0
 %
 
35.0
 %
State income taxes, net of federal benefit
 
4.8

 
5.7

 
4.4

Nondeductible expenses
 
1.8

 
2.6

 
3.2

Uncertain tax position
 
(0.9
)
 
(1.3
)
 

Tax Cut and Jobs Act Enactment
 

 

 
(22.9
)
Excess tax benefit
 
(2.5
)
 
(2.6
)
 
(1.6
)
Credits and other
 
(2.5
)
 
0.7

 
(0.1
)
Effective tax rate
 
21.7
 %
 
26.1
 %
 
18.0
 %

Schedule of Unrecognized Tax Benefits
A reconciliation of the total amounts of unrecognized tax benefits follows:
 
 
Unrecognized tax benefits
As of January 1, 2018
 
$

Acquired unrecognized tax position
 
3,786

Increased (decreases) in unrecognized tax benefits as a result of:
 
 
Tax positions taken in the current year
 
1,835

Lapse of statute of limitations
 
(1,324
)
As of December 31, 2018
 
$
4,297

Increased (decreases) 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