Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.6.0.2
Income Taxes
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Note 4. Income Taxes

The components of the provision for income taxes are as follows:
 
 
Year Ended December 31,
(In thousands)
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
 
Federal
 
$
126,903

 
$
120,437

 
$
123,598

State
 
20,111

 
21,248

 
15,858

 
 
147,014

 
141,685

 
139,456

Deferred:
 
 
 
 
 
 
Federal
 
29,354

 
38,549

 
21,542

State
 
5,454

 
5,093

 
4,002

 
 
34,808

 
43,642

 
25,544

Total provision for income taxes
 
$
181,822

 
$
185,327

 
$
165,000



The following is a reconciliation of income tax expense calculated using the U.S. statutory federal income tax rate with our income tax expense for 2016, 2015 and 2014:
 
 
Year Ended December 31,
(In thousands)
 
2016
 
2015
 
2014
Tax provision at statutory rate
 
$
167,156

 
$
171,506

 
$
151,380

State income taxes, net of federal benefit
 
16,711

 
17,097

 
14,120

Meals and entertainment disallowance
 
964

 
1,035

 
959

Tax credits
 
(2,408
)
 
(3,036
)
 
(1,307
)
Other, net
 
(601
)
 
(1,275
)
 
(152
)
Total provision for income taxes
 
$
181,822

 
$
185,327

 
$
165,000



Deferred tax assets and liabilities, which are included in "Other assets" and "Deferred income taxes" on our Balance Sheets, consist of the following:
 
 
December 31,
(In thousands)
 
2016
 
2015
Deferred tax assets:
 
 
 
 
Claims and insurance reserves
 
$
43,409

 
$
41,576

Allowance for doubtful accounts
 
1,198

 
1,730

Accrued vacation
 
24,227

 
22,174

Deferred compensation
 
40,742

 
33,382

Other
 
10,395

 
12,008

Total deferred tax assets
 
119,971

 
110,870

 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
Depreciation and amortization
 
(376,034
)
 
(334,379
)
Unrecognized revenue
 
(11,465
)
 
(10,062
)
Other
 
(2,334
)
 
(1,483
)
Total deferred tax liabilities
 
(389,833
)
 
(345,924
)
Net deferred tax liability
 
$
(269,862
)
 
$
(235,054
)


As of December 31, 2016, the Company had various state tax credit carryforwards of approximately $4.0 million that are scheduled to expire in one to fifteen years.

We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We remain open to examination by the Internal Revenue Service for tax years 2013 through 2016. We remain open to examination by various state tax jurisdictions for tax years 2012 through 2016.

The Company's liability for unrecognized tax benefits was immaterial as of December 31, 2016 and 2015. Interest and penalties related to uncertain tax positions, which are immaterial, are recorded in our "Provision for income taxes" on our Statements of Operations. Changes in our liability for unrecognized tax benefits could affect our effective tax rate, if recognized, but we do not expect any material changes within the next twelve months.