Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
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)

 

2020

 

 

2019

 

 

2018

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

216,469

 

 

$

152,836

 

 

$

113,491

 

State

 

 

53,224

 

 

 

42,438

 

 

 

38,647

 

 

 

 

269,693

 

 

 

195,274

 

 

 

152,138

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(35,372

)

 

 

12,013

 

 

 

49,125

 

State

 

 

(5,639

)

 

 

1,144

 

 

 

8,582

 

 

 

 

(41,011

)

 

 

13,157

 

 

 

57,707

 

Total provision for income taxes

 

$

228,682

 

 

$

208,431

 

 

$

209,845

 

 

     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 2020, 2019 and 2018:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Tax provision at statutory rate

 

$

189,287

 

 

$

173,029

 

 

$

171,258

 

State income taxes, net of federal benefit

 

 

39,098

 

 

 

35,507

 

 

 

36,396

 

Other, net

 

 

297

 

 

 

(105

)

 

 

2,191

 

Total provision for income taxes

 

$

228,682

 

 

$

208,431

 

 

$

209,845

 

 

 

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)

 

2020

 

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Claims and insurance reserves

 

$

28,863

 

 

$

28,390

 

Accrued vacation

 

 

15,867

 

 

 

17,642

 

Deferred compensation

 

 

43,134

 

 

 

42,417

 

Other

 

 

29,451

 

 

 

11,843

 

Total deferred tax assets

 

 

117,315

 

 

 

100,292

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

(330,751

)

 

 

(354,762

)

Other

 

 

(3,640

)

 

 

(3,617

)

Total deferred tax liabilities

 

 

(334,391

)

 

 

(358,379

)

Net deferred tax liability

 

$

(217,076

)

 

$

(258,087

)

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 2017 through 2020. We also remain open to examination by various state tax jurisdictions for tax years 2016 through 2020.

The Company’s liability for unrecognized tax benefits was immaterial as of December 31, 2020 and 2019. 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.