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Note 7 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. Income Taxes

Income tax expense attributable to earnings before income taxes consists of (in thousands):

		Years ended December 31,
		2016				2015				2014
Current:
Federal		$	191,422			$	160,235			$	130,761
State and local			21,871				22,306				19,705
			213,293				182,541				150,466
Deferred:
Federal			45,846				71,292				72,547
State and local			4,568				9,135				6,796
			50,414				80,427				79,343
Total tax expense		$	263,707			$	262,968			$	229,809

Income tax expense attributable to earnings before income taxes differed from the amounts computed using the statutory federal income tax rate of

35%

as follows (in thousands):

		Years ended December 31,
		2016				2015				2014
Income tax at federal statutory rate		$	243,529			$	241,571			$	211,610
State tax, net of federal effect			19,165				18,671				17,357
Nondeductible meals and entertainment			1,419				1,420				1,395
Change in effective state tax rate, net of federal benefit			(1,055	)			1,761				256
Other, net			649				(455	)			(809	)
Total tax expense		$	263,707			$	262,968			$	229,809

Income taxes receivable was

$15.7

million and

$76.7

million at

December

31,

2016

and

2015,

respectively. These amounts have been included in other receivables in our Consolidated Balance Sheets. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at

December

31,

2016

and

2015,

are presented below (in thousands):

 

		December 31,
		2016				2015
Deferred tax assets:
Insurance accruals		$	34,788			$	33,522
Allowance for doubtful accounts			2,347				2,335
Compensation accrual			10,443				13,991
Deferred compensation accrual			26,062				24,687
Federal benefit of state uncertain tax positions			14,085				12,751
Other			3,853				4,036
Total gross deferred tax assets			91,578				91,322
Valuation allowance			-				(552	)
Total deferred tax assets, net of valuation allowance			91,578				90,770
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation			831,555				786,840
Prepaid permits and insurance, principally due to expensing for income tax purposes			37,119				33,064
Other			13,538				11,086
Total gross deferred tax liabilities			882,212				830,990
Net deferred tax liability		$	790,634			$	740,220

Guidance on accounting for uncertainty in income taxes prescribes recognition and measurement criteria and requires that we assess whether the benefits of our tax positions taken are more likely than not of being sustained under tax audits.  We have made adjustments to the balance of unrecognized tax benefits, a component of other long-term liabilities on our Consolidated Balance Sheets, as follows (in millions):

		December 31,
		2016				2015				2014
Beginning balance		$	32.0			$	31.6			$	29.7
Additions based on tax positions related to the current year			10.3				9.4				8.2
Additions/(reductions) based on tax positions taken in prior years			(3.2	)			(2.5	)			0.4
Reductions due to settlements			(0.4	)			(3.0	)			(3.7	)
Reductions due to lapse of applicable statute of limitations			(3.3	)			(3.5	)			(3.0	)
Ending balance		$	35.4			$	32.0			$	31.6

At

December

31,

2016

and

2015,

we had a total of

$35.4

million and

$32.0

million, respectively, in gross unrecognized tax benefits.  Of these amounts,

$23.0

million and

$20.8

million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate in

2016

and

2015,

respectively.  Interest and penalties related to income taxes are classified as interest expense in our Consolidated Statements of Earnings.  The amount of accrued interest and penalties recognized during the years ended

December

31,

2016,

2015,

and

2014,

was

$1.9

million,

$1.9

million, and

$1.8

million, respectively. Future changes to unrecognized tax benefits will be recognized as income tax expense and interest expense, as appropriate.  The total amount of accrued interest and penalties for such unrecognized tax benefits at

December

31,

2016

and

2015,

was

$4.4

million and

$4.0

million, respectively.

Tax years

2013

and forward remain subject to examination by federal tax jurisdictions, while tax years

2005

and forward remain open for state jurisdictions.

X

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The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319

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