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Note 7 - Income Taxes | 12 Months Ended
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Dec. 31, 2021
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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 142,542 |  |  | $ | 138,952 |  |  | $ | 87,977 |
State and local |  |  | 43,004 |  |  |  | 28,094 |  |  |  | 20,981 |
|  |  | 185,546 |  |  |  | 167,046 |  |  |  | 108,958 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 43,900 |  |  |  | (2,392 | ) |  |  | 51,229 |
State and local |  |  | 9,520 |  |  |  | (4,664 | ) |  |  | 4,388 |
|  |  | 53,420 |  |  |  | (7,056 | ) |  |  | 55,617 |
Total tax expense/(benefit) |  | $ | 238,966 |  |  | $ | 159,990 |  |  | $ | 164,575 |
Income tax expense attributable to earnings before income taxes differed from the amounts computed using the statutory federal income tax rate of 21% as follows (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Income tax at federal statutory rate |  | $ | 209,952 |  |  | $ | 139,865 |  |  | $ | 142,988 |
State tax, net of federal effect |  |  | 37,223 |  |  |  | 20,071 |  |  |  | 19,293 |
Benefit of stock compensation |  |  | (7,583 | ) |  |  | (3,503 | ) |  |  | (1,238 | )
199/R&D credit |  |  | (1,524 | ) |  |  | - |  |  |  | (200 | )
Nondeductible meals and entertainment |  |  | 130 |  |  |  | 1,344 |  |  |  | 1,688 |
Change in effective state tax rate, net of federal benefit |  |  | (724 | ) |  |  | 98 |  |  |  | 1,562 |
Other, net |  |  | 1,492 |  |  |  | 2,115 |  |  |  | 482 |
Total tax expense |  | $ | 238,966 |  |  | $ | 159,990 |  |  | $ | 164,575 |
Income taxes receivable was $33.7 million and $3.1 million at December 31, 2021 and 2020, 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, 2021 and 2020, are presented below (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Insurance accruals |  | $ | 27,487 |  |  | $ | 24,304 |
Allowance for doubtful accounts |  |  | 8,886 |  |  |  | 9,270 |
Compensation accrual |  |  | 22,061 |  |  |  | 10,809 |
CARES Act payroll tax deferral |  |  | 9,955 |  |  |  | 19,931 |
Deferred compensation accrual |  |  | 28,937 |  |  |  | 25,702 |
Federal benefit of state uncertain tax positions |  |  | 12,870 |  |  |  | 10,312 |
Lease liabilities |  |  | 43,850 |  |  |  | 32,625 |
State NOL carry-forward |  |  | 7,303 |  |  |  | 8,460 |
Other |  |  | 5,549 |  |  |  | 4,237 |
Total gross deferred tax assets |  |  | 166,898 |  |  |  | 145,650 |
Valuation allowance |  |  | (7,303 | ) |  |  | (8,460 | )
Total deferred tax assets, net of valuation allowance |  |  | 159,595 |  |  |  | 137,190 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Plant and equipment, principally due to differences in depreciation |  |  | 816,744 |  |  |  | 748,883 |
Prepaid permits and insurance, principally due to expensing for income tax purposes |  |  | 44,132 |  |  |  | 42,126 |
Lease right-of-use assets |  |  | 44,161 |  |  |  | 32,952 |
Other |  |  | - |  |  |  | 5,251 |
Total gross deferred tax liabilities |  |  | 905,037 |  |  |  | 829,212 |
Net deferred tax liability |  | $ | 745,442 |  |  | $ | 692,022 |
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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Beginning balance |  | $ | 66.1 |  |  | $ | 50.6 |  |  | $ | 52.2 |
Additions based on tax positions related to the current year |  |  | 14.9 |  |  |  | 9.8 |  |  |  | 11.0 |
Additions/(reductions) based on tax positions taken in prior years |  |  | 4.8 |  |  |  | 13.9 |  |  |  | (6.5 | )
Reductions due to settlements |  |  | (0.9 | ) |  |  | (1.0 | ) |  |  | - |
Reductions due to lapse of applicable statute of limitations |  |  | (6.4 | ) |  |  | (7.2 | ) |  |  | (6.1 | )
Ending balance |  | $ | 78.5 |  |  | $ | 66.1 |  |  | $ | 50.6 |
At December 31, 2021 and 2020, we had a total of $78.5 million and $66.1 million, respectively, in gross unrecognized tax benefits. Of these amounts, $67.2 million and $57.1 million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate in 2021 and 2020, 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, 2021, 2020, and 2019, was $3.5 million, $2.9 million, and $3.2 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, 2021 and 2020, was $6.4 million and $5.6 million, respectively. No material change in unrecognized tax benefits is expected in the next 12 months. Tax years 2018 and forward remain subject to examination by federal tax jurisdictions, while tax years 2011 and forward remain open for state jurisdictions.

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- Definition 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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