Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.1.9
Income Taxes
12 Months Ended
Dec. 31, 2014
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)
 
2014
 
2013
 
2012
Current:
 
 
 
 
 
 
Federal
 
$
123,598

 
$
74,202

 
$
74,074

State
 
15,858

 
15,635

 
11,890

 
 
139,456

 
89,837

 
85,964

Deferred:
 
 
 
 
 
 
Federal
 
21,542

 
28,593

 
14,978

State
 
4,002

 
4,143

 
2,704

 
 
25,544

 
32,736

 
17,682

Total provision for income taxes
 
$
165,000

 
$
122,573

 
$
103,646



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 2014, 2013 and 2012:
 
 
Year Ended December 31,
(In thousands)
 
2014
 
2013
 
2012
Tax provision at statutory rate
 
$
151,380

 
$
115,040

 
$
95,584

State income taxes, net of federal benefit
 
14,120

 
12,083

 
10,211

Meals and entertainment disallowance
 
959

 
872

 
828

Tax credits
 
(1,307
)
 
(5,422
)
 
(2,609
)
Other, net
 
(152
)
 

 
(368
)
Total provision for income taxes
 
$
165,000

 
$
122,573

 
$
103,646



Deferred tax assets and liabilities consist of the following:
 
 
December 31,
(In thousands)
 
2014
 
2013
Deferred tax assets:
 
 
 
 
Claims and insurance reserves
 
$
36,690

 
$
35,200

Allowance for doubtful accounts
 
2,161

 
1,595

Accrued vacation
 
19,291

 
14,873

Deferred compensation
 
28,648

 
22,067

Other
 
12,924

 
10,648

Total deferred tax assets
 
99,714

 
84,383

Valuation allowance
 
(559
)
 
(460
)
Net deferred tax assets
 
99,155

 
83,923

 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
Depreciation and amortization
 
(279,324
)
 
(239,971
)
Unrecognized revenue
 
(9,506
)
 
(8,169
)
Other
 
(1,737
)
 
(1,651
)
Total deferred tax liabilities
 
(290,567
)
 
(249,791
)
Net deferred tax liability
 
$
(191,412
)
 
$
(165,868
)


Our net deferred tax liability consists of the following:
 
 
December 31,
(In thousands)
 
2014
 
2013
Current deferred tax asset
 
$
29,371

 
$
23,249

Noncurrent deferred tax liability
 
(220,783
)
 
(189,117
)
Net deferred tax liability
 
$
(191,412
)
 
$
(165,868
)

As of December 31, 2014, the Company had various state tax credit carryforwards of approximately $4.3 million that are scheduled to expire in five 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 2011 through 2014. We remain open to examination by various state tax jurisdictions for tax years 2010 through 2014.

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. The Company's liability for unrecognized tax benefits was immaterial as of December 31, 2014 and 2013. Interest and penalties related to uncertain tax positions, which are immaterial, are recorded in our Provision for Income Taxes on our Statements of Operations.