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Income Taxes
 12 Months Ended
Dec. 31, 2022
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)

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

318,571

 

 

$

253,084

 

 

$

216,469

 

State

 

 

83,611

 

 

 

70,799

 

 

 

53,224

 

 

 

 

402,182

 

 

 

323,883

 

 

 

269,693

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

51,862

 

 

 

26,382

 

 

 

(35,372

)

State

 

 

10,146

 

 

 

3,783

 

 

 

(5,639

)

 

 

 

62,008

 

 

 

30,165

 

 

 

(41,011

)

     Total provision for income taxes

 

$

464,190

 

 

$

354,048

 

 

$

228,682

 

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 2022, 2021 and 2020:

 

 

 

 

OLD DOMINION FREIGHT LINE, INC.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

 

 

Year Ended December 31,

 

(In thousands)

 

2022

 

 

2021

 

 

2020

 

Tax provision at statutory rate

 

$

386,683

 

 

$

291,569

 

 

$

189,287

 

State income taxes, net of federal benefit

 

 

75,906

 

 

 

60,036

 

 

 

39,098

 

Other, net

 

 

1,601

 

 

 

2,443

 

 

 

297

 

     Total provision for income taxes

 

$

464,190

 

 

$

354,048

 

 

$

228,682

 

 

 

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)

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Claims and insurance reserves

 

$

31,736

 

 

$

30,773

 

Accrued vacation

 

 

20,330

 

 

 

21,518

 

Deferred compensation

 

 

39,973

 

 

 

43,150

 

Other

 

 

11,767

 

 

 

21,349

 

Total deferred tax assets

 

 

103,806

 

 

 

116,790

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

 

(407,942

)

 

 

(359,738

)

Other

 

 

(5,113

)

 

 

(4,293

)

Total deferred tax liabilities

 

 

(413,055

)

 

 

(364,031

)

Net deferred tax liability

 

$

(309,249

)

 

$

(247,241

)

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 2019 through 2022. We also remain open to examination by various state tax jurisdictions for tax years 2018 through 2022.

The Company’s liability for unrecognized tax benefits was immaterial as of December 31, 2022 and 2021. 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.