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]  
Company’s income tax provision

The Company’s income tax provision consisted of the following:
INCOME TAXES
For the years ended December 31,   2020     2019     2018  
(in thousands)                  
Current:                        
Federal   $ 67,861     $ 43,593     $ 49,911  
State     18,381       15,337       13,602  
Foreign     8,869       6,111       7,929  
Total current tax     95,111       65,041       71,442  
Deferred:                        
Federal     (2,076 )     (5,217 )     6,091  
State     312       (1,518 )     1,957  
Foreign     549       (493 )     (420 )
Total deferred tax     (1,215 )     (7,228 )     7,628  
Total income tax provision   $ 93,896     $ 57,813     $ 79,070  
primary factors causing income tax expense to be different than the federal statutory rate

The primary factors causing income tax expense to be different than the federal statutory rate for 2020, 2019 and 2018 are as follows:

For the years ended December 31,   2020     2019     2018  
(in thousands)                  
Income tax at statutory rate   $ 74,491     $ 54,845     $ 65,254  
State income tax expense (net of federal benefit)     14,393       10,182       12,984  
Foreign tax expense     2,341       933       1,186  
Foreign tax credit     (240 )     (242 )     (234 )
Repatriation tax under TCJA     —       (844 )     1,233  
Pension settlement     —       (10,537 )     —  
Executive compensation     5,557       2,445       2,165  
Restricted stock adjustments     (3,927 )     (2,973 )     (4,420 )
Other     1,281       4,004       902  
Total income tax provision   $ 93,896     $ 57,813     $ 79,070  
Significant components of the Company’s deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2020 and 2019 are as follows:
INCOME TAXES (Details 3)
December 31,   2020     2019  
(in thousands)            
Deferred tax assets:                
Termite accrual   $ 721     $ 786  
Insurance and contingencies     19,531       18,464  
Unearned revenues     11,825       11,506  
Compensation and benefits     12,304       11,983  
State and foreign operating loss carryforwards     2,768       3,939  
Bad debt reserve     4,214       4,312  
Foreign tax credit     3,804       3,972  
Other     2,519       2,439  
Valuation allowance     (144 )     (83 )
Total deferred tax assets     57,542       57,318  
Deferred tax liabilities:                
Depreciation and amortization     (25,730 )     (24,981 )
Net pension liability     (727 )     (5,279 )
Intangibles and other     (39,475 )     (34,805 )
Total deferred tax liabilities   $ (65,932 )   $ (65,065 )
Net deferred taxes                
Deferred tax assets   $ 2,222     $ 2,180  
Deferred tax liabilities   $ (10,612 )   $ (9,927 )
Analysis of the valuation allowance

Analysis of the valuation allowance:
INCOME TAXES (Details 4)
December 31,   2020     2019  
(in thousands)            
Valuation allowance at beginning of year   $ 83     $ 76  
Increase in valuation allowance     61       7  
Valuation allowance at end of year   $ 144     $ 83  
reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
INCOME TAXES (Details 5)
December 31,   2020     2019  
(in thousands)            
Unrecognized tax benefits at beginning of year   $ 844     $ 2,554  
Additions for tax positions of prior years     —       844  
Reductions for tax positions of prior years     —       (2,554 )
Unrecognized tax benefits at end of year   $ 844     $ 844