v3.22.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes on continuing operations for the years ended December 31, 2022, 2021 and 2020 is summarized as follows:
 Year Ended December 31,
 2022 2021 2020
Current:   
Federal$56,717 $49,105 $60,591 
State14,216 11,898 13,460 
 70,933 61,003 74,051 
Deferred: 
Federal(5,158)(716)(23,054)
State(1,338)(8)(4,755)
(6,496)(724)(27,809)
     TOTAL$64,437 $60,279 $46,242 

A reconciliation of the federal statutory rate to the effective tax rate for income from continuing operations for the years ended December 31, 2022, 2021 and 2020, respectively, is comprised as follows:

 
 December 31,
 202220212020
Income tax expense at statutory rate21.0 %21.0 %21.0 %
State income taxes - net of federal benefit3.5 3.7 3.2 
Non-deductible expenses2.0 2.4 1.8 
Equity compensation(3.6)(3.3)(4.3)
Other adjustments(0.6)(0.4)(0.4)
TOTAL INCOME TAX PROVISION22.3 %23.4 %21.3 %

The Company's effective tax rate was 22.3% for the year ended December 31, 2022, compared to 23.4% for the same period in 2021 and 21.3% in 2020. The lower effective tax rate is due to higher tax benefits from stock compensation and lower tax expense from non-deductible expenses.
The Company's deferred tax assets and liabilities as of December 31, 2022 and 2021 are summarized below.

 December 31,
 2022 2021
Deferred tax assets (liabilities): 
Accrued expenses$61,685 $58,640 
Revenue related reserves18,046 13,171 
Tax credits1,742 2,138 
Insurance11,910 8,712 
Lease liability 364,408 285,643 
State taxes 28 (165)
457,819 368,139 
Valuation allowance(789)(789)
TOTAL DEFERRED TAX ASSETS457,030 367,350 
Depreciation and amortization(49,146)(45,827)
Prepaid expenses(5,150)(4,265)
Right of use asset (363,091)(284,111)
TOTAL DEFERRED TAX LIABILITIES(417,387)(334,203)
NET DEFERRED TAX ASSETS$39,643 $33,147 
The Company had state credit carryforwards as of December 31, 2022 and 2021 of $1,742 and $2,138, respectively. These carryforwards almost entirely relate to state limitations on the application of Enterprise Zone employment-related tax credits. Unless the Company uses the Enterprise Zone credits beforehand, the carryforward will begin to expire in 2023. As of December 31, 2022 and 2021, the valuation allowance of $789, for both years, was primarily recorded against the Enterprise Zone credits as the Company believes it is more likely than not that some of the benefit of the credits will not be realized.
The Company's operating loss carry forwards for states were not material during the years ended December 31, 2022 and 2021.
As of December 31, 2022, 2021 and 2020, the Company did not have any unrecognized tax benefits, net of its state benefits that would affect the Company's effective tax rate. The Company classifies interest and/or penalties on income tax liabilities or refunds as additional income tax expense or income. Such amounts are not material.
The Federal statutes of limitations on the Company's 2018, 2017, and 2016 income tax years lapsed during the third quarter of 2022, 2021, and 2020, respectively. During the fourth quarter of each year, various state statutes of limitations also lapsed. The lapses for the years ended December 31, 2022 and 2021 had no impact on the Company's unrecognized tax benefits.
During the year ended December 31, 2021, the state of Wisconsin initiated and completed an examination of the Company's 2019, 2018, and 2017 state tax years with no adjustments. The Company is not under examination by any major income tax jurisdiction.