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INCOME TAXES
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consists of the following:
(thousands) 2021 2020 2019
Current:      
Federal $ 57,156  $ 16,627  $ 17,587 
State 15,755  8,584  5,019 
Foreign (61) 61 
Total current 72,850  25,220  22,667 
Deferred:
Federal (1,854) 8,344  4,529 
State (2,089) (253) 1,064 
Total deferred (3,943) 8,091  5,593 
Income taxes $ 68,907  $ 33,311  $ 28,260 
The Company has accounted for in its 2021, 2020 and 2019 income tax provision the impact of Global Intangible Low-Taxed Income, base-erosion anti-abuse tax, interest expense limitations under Section 163(j), and foreign-derived intangible income deductions, although such provisions were either not applicable or resulted in a zero or immaterial impact to the consolidated financial statements.
A reconciliation of the differences between the actual provision for income taxes and income taxes at the federal statutory income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019 is as follows:
(thousands) 2021 2020 2019
Rate applied to pretax income $ 61,598  21.0  % $ 27,377  21.0  % $ 24,744  21.0  %
State taxes, net of federal tax effect 10,358  3.5  % 6,026  4.6  % 5,147  4.4  %
Research and development tax credits (1,990) (0.7) % (1,647) (1.3) % (343) (0.3) %
Section 162(m) permanent addback 5,825  2.0  % 1,951  1.5  % 1,019  0.9  %
Excess tax benefit on stock-based compensation (6,035) (2.1) % (350) (0.3) % (833) (0.7) %
Other (849) (0.3) % (46) 0.1  % (1,474) (1.3) %
Income taxes $ 68,907  23.5  % $ 33,311  25.6  % $ 28,260  24.0  %
The composition of the deferred tax assets and liabilities as of December 31, 2021 and 2020 is as follows:  
(thousands) 2021 2020
Long-term deferred income tax assets (liabilities):    
Trade receivables allowance $ 1,022  $ 426 
Inventory capitalization 2,393  2,796 
Accrued expenses 19,793  8,988 
Deferred compensation 578  447 
Inventory reserves 6,413  5,235 
Federal NOL carryforwards 997  1,288 
State NOL carryforwards 911  1,040 
Valuation allowance - NOL (712) (767)
Share-based compensation 6,753  8,087 
Operating lease right-of-use assets (40,082) (15,292)
Operating lease liabilities 40,751  15,710 
Other 231  1,454 
Intangibles (29,422) (28,992)
Depreciation expense (43,124) (37,661)
Prepaid expenses (2,955) (2,275)
Net deferred tax liabilities $ (36,453) $ (39,516)
Cash paid by the Company for income taxes was $46.2 million, $7.9 million and $36.1 million in 2021, 2020 and 2019, respectively.
As of December 31, 2021 and December 31, 2020, the Company had gross federal, state, and foreign net operating losses, of approximately $25.5 million and $26.2 million, respectively. These loss carryforwards generally expire between tax years ending December 31, 2022 and December 31, 2039. The components of the valuation allowance relate to certain acquired federal, state and foreign net operating loss carryforwards that the Company anticipates will not be utilized prior to their expiration, either due to income limitations or limitations under Section 382. The tax effected values of these net operating losses are $1.9 million and $2.3 million at December 31, 2021 and 2020, respectively, exclusive of valuation allowances of $0.7 million and $0.8 million at December 31, 2021 and 2020, respectively.
The Company is subject to periodic audits by domestic tax authorities. For the majority of tax jurisdictions, the U.S. federal statute of limitations remains open for the years 2019 and later. Uncertain tax benefits were immaterial at December 31, 2021 and 2020 and activity related to uncertain tax benefits was immaterial for all periods presented.