Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Domestic and Foreign Income Taxes |
The components of income before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2017 |
Domestic |
$ |
34,700 |
|
|
$ |
46,542 |
|
|
$ |
29,792 |
|
Foreign |
1,853 |
|
|
(4,152 |
) |
|
(1,075 |
) |
Income before (benefit) provision for income taxes |
$ |
36,553 |
|
|
$ |
42,390 |
|
|
$ |
28,717 |
|
|
| Income Tax Provision (Benefit) |
The components of the (benefit) provision for income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2017 |
Current: |
|
|
|
|
|
|
|
|
Federal |
$ |
109 |
|
|
$ |
(1,888 |
) |
|
$ |
(1,055 |
) |
State |
474 |
|
|
1,176 |
|
|
671 |
|
Foreign |
(1 |
) |
|
30 |
|
|
161 |
|
|
582 |
|
|
(682 |
) |
|
(223 |
) |
Deferred: |
|
|
|
|
|
Federal |
(4,794 |
) |
|
2,662 |
|
|
(6,683 |
) |
State |
202 |
|
|
2,530 |
|
|
1,853 |
|
Foreign |
262 |
|
|
303 |
|
|
262 |
|
|
$ |
(4,330 |
) |
|
$ |
5,495 |
|
|
$ |
(4,568 |
) |
|
$ |
(3,748 |
) |
|
$ |
4,813 |
|
|
$ |
(4,791 |
) |
|
| Deferred Income Tax Assets and Liabilities |
Deferred tax assets and liabilities consist of the following:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2019 |
|
2018 |
Deferred tax assets: |
|
|
|
|
|
Compensation accruals |
$ |
1,745 |
|
|
$ |
3,489 |
|
Reserves |
2,739 |
|
|
2,940 |
|
Other |
9,398 |
|
|
127 |
|
Net operating losses |
14,355 |
|
|
10,010 |
|
Interest rate swaps |
1,604 |
|
|
666 |
|
Energy efficiency |
35,939 |
|
|
28,911 |
|
Interest limitation |
5,148 |
|
|
3,292 |
|
Deferred revenue |
1,635 |
|
|
1,943 |
|
Gross deferred income tax assets |
72,563 |
|
|
51,378 |
|
Valuation allowance |
(8,583 |
) |
|
(7,931 |
) |
Total deferred income tax assets |
$ |
63,980 |
|
|
$ |
43,447 |
|
Deferred tax liabilities: |
|
|
|
Depreciation |
$ |
(51,579 |
) |
|
$ |
(37,107 |
) |
Deferred effect of derivative liability and ASU 2016-09 adoption |
(328 |
) |
|
(475 |
) |
Canadian capital cost, allowance and amortization |
(2,919 |
) |
|
(1,974 |
) |
United Kingdom goodwill amortization |
(781 |
) |
|
(755 |
) |
Outside basis difference |
(8,488 |
) |
|
(7,488 |
) |
Total deferred income tax liabilities |
(64,095 |
) |
|
(47,799 |
) |
Deferred income tax liabilities, net |
$ |
(115 |
) |
|
$ |
(4,352 |
) |
|
| Reconciliation of Effective Tax Rates |
The following is a reconciliation of the effective tax rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2017 |
Income before (benefit) provision for income taxes |
$ |
36,553 |
|
|
$ |
42,390 |
|
|
$ |
28,717 |
|
Federal statutory tax expense |
$ |
7,676 |
|
|
$ |
8,902 |
|
|
$ |
10,048 |
|
State income taxes, net of federal benefit |
2,140 |
|
|
3,071 |
|
|
1,584 |
|
Net state impact of deferred rate change |
(53 |
) |
|
174 |
|
|
327 |
|
Non deductible expenses |
150 |
|
|
982 |
|
|
1,473 |
|
Impact of reserve for uncertain tax positions |
(925 |
) |
|
879 |
|
|
42 |
|
Stock-based compensation expense |
(169 |
) |
|
(441 |
) |
|
116 |
|
Energy efficiency preferences |
(12,699 |
) |
|
(8,636 |
) |
|
(6,416 |
) |
Foreign items and rate differential |
56 |
|
|
(41 |
) |
|
139 |
|
Redeemable non-controlling interests |
1,101 |
|
|
70 |
|
|
1,579 |
|
Tax rate change |
— |
|
|
— |
|
|
(13,948 |
) |
Valuation allowance |
205 |
|
|
641 |
|
|
424 |
|
Miscellaneous |
(1,230 |
) |
|
(788 |
) |
|
(159 |
) |
|
$ |
(3,748 |
) |
|
$ |
4,813 |
|
|
$ |
(4,791 |
) |
Effective tax rate: |
|
|
|
|
|
|
|
Federal statutory rate expense |
21.0 |
% |
|
21.0 |
% |
|
35.0 |
% |
State income taxes, net of federal benefit |
5.9 |
% |
|
7.2 |
% |
|
5.5 |
% |
Net state impact of deferred rate change |
(0.1 |
)% |
|
0.4 |
% |
|
1.1 |
% |
Non deductible expenses |
0.4 |
% |
|
2.3 |
% |
|
5.1 |
% |
Impact of reserve for uncertain tax positions |
(2.5 |
)% |
|
2.1 |
% |
|
0.1 |
% |
Stock-based compensation expense |
(0.5 |
)% |
|
(1.0 |
)% |
|
0.4 |
% |
Energy efficiency preferences |
(34.7 |
)% |
|
(20.4 |
)% |
|
(22.3 |
)% |
Foreign items and rate differential |
0.2 |
% |
|
(0.1 |
)% |
|
0.5 |
% |
Redeemable non-controlling interests |
3.0 |
% |
|
0.2 |
% |
|
5.5 |
% |
Tax rate change |
— |
% |
|
— |
% |
|
(48.6 |
)% |
Valuation allowance |
0.6 |
% |
|
1.5 |
% |
|
1.5 |
% |
Miscellaneous |
(3.6 |
)% |
|
(1.8 |
)% |
|
(0.5 |
)% |
|
(10.3 |
)% |
|
11.4 |
% |
|
(16.7 |
)% |
|
| Unrecognized Tax Benefits |
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
Balance, beginning of year |
$ |
1,600 |
|
|
$ |
600 |
|
Additions for current year tax positions |
— |
|
|
300 |
|
Additions for prior year tax positions |
— |
|
|
900 |
|
Settlements paid to tax authorities |
— |
|
|
— |
|
Reductions of prior year tax positions |
(1,200 |
) |
|
(200 |
) |
Balance, end of year |
$ |
400 |
|
|
$ |
1,600 |
|
|