Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Loss Before Income Taxes |
Loss before income taxes consists of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
U.S. Operations |
|
$ |
(95,555 |
) |
|
$ |
(213,971 |
) |
|
$ |
(81,049 |
) |
Foreign Operations |
|
|
237 |
|
|
|
197 |
|
|
|
98 |
|
Loss before income taxes |
|
$ |
(95,318 |
) |
|
$ |
(213,774 |
) |
|
$ |
(80,951 |
) |
|
| Schedule of Components of Income Tax Benefit Attributable to Loss Before Income Taxes |
Income tax benefit attributable to loss before income taxes is summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Current provision: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
1,296 |
|
|
$ |
12,549 |
|
|
$ |
18,635 |
|
State |
|
|
1,998 |
|
|
|
4,175 |
|
|
|
7,278 |
|
Foreign |
|
|
50 |
|
|
|
39 |
|
|
|
43 |
|
Total current provision |
|
|
3,344 |
|
|
|
16,763 |
|
|
|
25,956 |
|
Deferred provision: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(25,004 |
) |
|
|
(40,106 |
) |
|
|
(19,872 |
) |
State |
|
|
(4,727 |
) |
|
|
(8,165 |
) |
|
|
(6,474 |
) |
Total deferred provision |
|
|
(29,731 |
) |
|
|
(48,271 |
) |
|
|
(26,346 |
) |
Income tax benefit |
|
$ |
(26,387 |
) |
|
$ |
(31,508 |
) |
|
$ |
(390 |
) |
|
| Reconciliation of the U.S. Federal Income Tax Rate to Income Tax (Benefit) Expense Expressed as a Percent of Pretax Loss |
A reconciliation of the U.S. Federal income tax rate of 21.0% to income tax benefit expressed as a percent of pretax loss is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Federal income tax at the statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
|
|
21.0 |
% |
(Decrease) increase in income tax benefit: |
|
|
|
|
|
|
|
|
|
State and foreign income taxes, net of federal benefits |
|
|
(1.6 |
) |
|
|
0.8 |
|
|
|
(0.7 |
) |
Jobs tax credits, net |
|
|
2.2 |
|
|
|
1.1 |
|
|
|
3.9 |
|
State deferred rate change |
|
|
(1.2 |
) |
|
|
1.6 |
|
|
|
(0.3 |
) |
Legal claims |
|
|
(2.0 |
) |
|
|
(11.3 |
) |
|
|
— |
|
Non-deductible expenses |
|
|
(1.4 |
) |
|
|
(0.2 |
) |
|
|
0.1 |
|
Share-based compensation |
|
|
(4.6 |
) |
|
|
0.9 |
|
|
|
0.1 |
|
Executive compensation |
|
|
(1.1 |
) |
|
|
— |
|
|
|
— |
|
Non-deductible goodwill |
|
|
— |
|
|
|
— |
|
|
|
(22.4 |
) |
Uncertain tax positions |
|
|
0.0 |
|
|
|
(0.5 |
) |
|
|
0.1 |
|
Adjustments associated with prior year provision |
|
|
19.0 |
|
|
|
0.7 |
|
|
|
(0.8 |
) |
Acquisition impacts |
|
|
(1.9 |
) |
|
|
— |
|
|
|
— |
|
Minority interest |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
— |
|
Lobbying and political contributions |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
— |
|
Other |
|
|
0.1 |
|
|
|
0.9 |
|
|
|
(0.5 |
) |
Total |
|
|
27.7 |
% |
|
|
14.7 |
% |
|
|
0.5 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
Deferred tax assets: |
|
|
|
|
|
|
Accrued expenses |
|
$ |
44,957 |
|
|
$ |
48,866 |
|
Allowance for credit losses and contractual allowances |
|
|
22,546 |
|
|
|
23,986 |
|
Net operating losses |
|
|
18,796 |
|
|
|
18,846 |
|
Share-based compensation |
|
|
15,799 |
|
|
|
4,628 |
|
IRC §163(j) interest |
|
|
96,961 |
|
|
|
84,696 |
|
Operating lease liability |
|
|
62,587 |
|
|
|
66,769 |
|
Other |
|
|
21,325 |
|
|
|
18,238 |
|
Deferred tax assets |
|
|
282,971 |
|
|
|
266,029 |
|
Valuation allowances |
|
|
(8,968 |
) |
|
|
(9,866 |
) |
Deferred tax assets, net |
|
|
274,003 |
|
|
|
256,163 |
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
Operating lease right-of-use asset |
|
|
(60,587 |
) |
|
|
(65,391 |
) |
Property and equipment |
|
|
(6,575 |
) |
|
|
(14,084 |
) |
Goodwill and other intangible assets |
|
|
(190,272 |
) |
|
|
(178,570 |
) |
Insurance recovery |
|
|
(8,677 |
) |
|
|
(15,048 |
) |
Interest rate swaps |
|
|
(2,604 |
) |
|
|
(6,101 |
) |
Deferred tax liabilities |
|
|
(268,715 |
) |
|
|
(279,194 |
) |
Deferred income taxes, net |
|
$ |
5,288 |
|
|
$ |
(23,031 |
) |
|
| Schedule of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
Balance at beginning of year |
|
$ |
1,502 |
|
|
$ |
505 |
|
(Decrease) increase related to prior year tax positions |
|
|
(9 |
) |
|
|
1,502 |
|
Decrease related to current year tax positions |
|
|
— |
|
|
|
(42 |
) |
Lapse of statue of limitations |
|
|
— |
|
|
|
(463 |
) |
Balance at end of year |
|
$ |
1,493 |
|
|
$ |
1,502 |
|
|