v3.25.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of the Company’s income tax expense attributable to operations are as follows:
Year Ended December 31,
202420232022
(in thousands)
Current tax expense (benefit)
Federal$69 $10,091 $22,029 
State223 1,682 4,516 
Deferred tax expense (benefit)
Federal57,037 (2,821)(4,165)
State13,076 (2,164)4,540 
Income tax expense$70,405 $6,788 $26,920 
Schedule of Effective Income Tax Rate Reconciliation
The Company’s income tax expense attributable to operations differs from the expected tax expense (benefit) amount computed by applying the statutory federal income tax rate to income (loss) before taxes is as follows:
Year Ended December 31,
202420232022
Income tax expense computed at the statutory rate21.0 %21.0 %21.0 %
State income taxes4.5 — 7.7 
Officer's compensation limitation under 162(m)(1.3)2.5 0.7 
Stock-based compensation(0.7)1.1 0.5 
Valuation allowance(133.2)— — 
Other, net0.7 (1.1)(1.1)
Effective tax rate
(109.0)%23.5 %28.8 %
Schedule of Deferred Tax Assets and Liabilities
The components of the Company’s deferred tax assets and liabilities are as follows:
December 31,
20242023
(in thousands)
Deferred tax assets
Amortizable intangible assets$68,262 $73,650 
Operating lease liability996 995 
Accrued expenses1,332 1,418 
Excess profit share receipts11,692 — 
Carryforwards6,839 — 
Other26 — 
Total deferred tax assets(1)
89,147 76,063 
Valuation allowance(86,050)— 
Total deferred tax assets, net of valuation allowance$3,097 $76,063 
Deferred tax liabilities
Contract assets(1,997)(4,056)
Operating lease right-of-use asset(953)(972)
Property and equipment(147)(463)
Other— (459)
Total deferred tax liabilities(3,097)(5,950)
Deferred tax asset, net$— $70,113 
Schedule of Unrecognized Tax Benefits
The aggregate changes in the balance of unrecognized tax benefits were as follows:
Year Ended December 31,
202420232022
(in thousands)
Balance, beginning of year$3,968 $3,935 $— 
Increases for tax positions related to the current year68 109 77 
Increases for tax positions related to prior years674 397 3,858 
Decreases for tax positions related to prior years— (473)— 
Balance, end of year$4,710 $3,968 $3,935 
Summary of Income Tax Examinations
The Company files its federal and state income tax returns and some of these returns remain open for examination, with the earliest open years in its key jurisdictions as follows:
U.S. Federal2016
State of Texas2016
State of New York2017
State of Illinois2021