Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.3.1.900
Income Taxes
12 Months Ended
Dec. 31, 2015
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)
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
 
Federal
 
$
120,437

 
$
123,598

 
$
74,202

State
 
21,248

 
15,858

 
15,635

 
 
141,685

 
139,456

 
89,837

Deferred:
 
 
 
 
 
 
Federal
 
38,549

 
21,542

 
28,593

State
 
5,093

 
4,002

 
4,143

 
 
43,642

 
25,544

 
32,736

Total provision for income taxes
 
$
185,327

 
$
165,000

 
$
122,573



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 2015, 2014 and 2013:
 
 
Year Ended December 31,
(In thousands)
 
2015
 
2014
 
2013
Tax provision at statutory rate
 
$
171,506

 
$
151,380

 
$
115,040

State income taxes, net of federal benefit
 
17,097

 
14,120

 
12,083

Meals and entertainment disallowance
 
1,035

 
959

 
872

Tax credits
 
(3,036
)
 
(1,307
)
 
(5,422
)
Other, net
 
(1,275
)
 
(152
)
 

Total provision for income taxes
 
$
185,327

 
$
165,000

 
$
122,573



Deferred tax assets and liabilities consist of the following:
 
 
December 31,
(In thousands)
 
2015
 
2014
Deferred tax assets:
 
 
 
 
Claims and insurance reserves
 
$
41,576

 
$
36,690

Allowance for doubtful accounts
 
1,730

 
2,161

Accrued vacation
 
22,174

 
19,291

Deferred compensation
 
33,382

 
28,648

Other
 
12,008

 
12,924

Total deferred tax assets
 
110,870

 
99,714

Valuation allowance
 

 
(559
)
Net deferred tax assets
 
110,870

 
99,155

Deferred tax liabilities:
 
 
 
 
Depreciation and amortization
 
(334,379
)
 
(279,324
)
Unrecognized revenue
 
(10,062
)
 
(9,506
)
Other
 
(1,483
)
 
(1,737
)
Total deferred tax liabilities
 
(345,924
)
 
(290,567
)
Net deferred tax liability
 
$
(235,054
)
 
$
(191,412
)


As of December 31, 2015, the Company had various state tax credit carryforwards of approximately $4.2 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 2012 through 2015. We remain open to examination by various state tax jurisdictions for tax years 2011 through 2015.

The Company's liability for unrecognized tax benefits was immaterial as of December 31, 2015 and 2014. 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.