Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.0.6
Income Taxes
12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes

Note 5. Income Taxes

The components of the provision for income taxes are as follows:

 

     Year Ended December 31,  

(In thousands)

   2011      2010      2009  

Current:

        

Federal

   $ 27,470       $ 34,255       $ 7,910   

State

     9,796         6,896         3,605   
  

 

 

    

 

 

    

 

 

 
     37,266         41,151         11,515   

Deferred:

        

Federal

     39,934         6,695         9,752   

State

     3,414         929         1,027   
  

 

 

    

 

 

    

 

 

 
     43,348         7,624         10,779   
  

 

 

    

 

 

    

 

 

 

Total provision for income taxes

   $ 80,614       $ 48,775       $ 22,294   
  

 

 

    

 

 

    

 

 

 

 

The following is a reconciliation of the U.S. statutory federal income tax rates with our effective income tax rates for 2011, 2010 and 2009:

 

     Year Ended December 31,  

(In thousands)

   2011     2010     2009  

Tax provision at statutory rate on income before income taxes

   $ 77,029      $ 43,549     $ 20,008  

State income taxes, net of federal benefit

     7,480        5,002       2,359  

Meals and entertainment disallowance

     721        616       521  

Tax credits

     (4,453     (744     (783

Other, net

     (163     352       189  
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 80,614      $ 48,775      $ 22,294  
  

 

 

   

 

 

   

 

 

 

Deferred tax assets and liabilities consist of the following:

 

     December 31,  

(In thousands)

   2011     2010  

Deferred tax assets:

    

Claims and insurance reserves

   $ 33,424     $ 30,823  

Allowance for doubtful accounts

     2,827       2,642  

Accrued vacation

     9,339       8,332  

Deferred compensation

     14,441       12,204  

Other

     11,036       6,652  
  

 

 

   

 

 

 

Total deferred tax assets

     71,067       60,653  

Deferred tax liabilities:

    

Depreciation

     (174,353     (122,950

Unrecognized revenue

     (6,995     (6,084

Employee benefits

     (3,421     (2,544

Other

     (1,748     (1,177
  

 

 

   

 

 

 

Total deferred tax liabilities

     (186,517     (132,755
  

 

 

   

 

 

 

Net deferred tax liability

   $ (115,450   $ (72,102
  

 

 

   

 

 

 

Our net deferred tax liability consists of the following:

 

     December 31,  

(In thousands)

   2011     2010  

Current deferred tax asset

   $ 19,466      $ 18,666   

Noncurrent deferred tax liability

     (134,916     (90,768
  

 

 

   

 

 

 

Net deferred tax liability

   $ (115,450   $ (72,102
  

 

 

   

 

 

 

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 2008 through 2011. We remain open to examination by state tax jurisdictions for tax years 2007 through 2011.

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. Interest and penalties related to uncertain income tax positions, which are immaterial, are recorded in our Provision for Income Taxes on our Statement of Operations.