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Note 13 - Income Taxes | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
13. | INCOME TAXE S:
The tax provisions are summarized as follows (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current provision − |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 20,303 |  |  | $ | 31,819 |  |  | $ | 22,443 |
State |  |  | 4,648 |  |  |  | 6,291 |  |  |  | 4,030 |
|  |  | 24,951 |  |  |  | 38,110 |  |  |  | 26,473 |
Deferred provision − |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 20,925 |  |  |  | 6,082 |  |  |  | (64,821 | )
State |  |  | 2,064 |  |  |  | (85 | ) |  |  | 2,618 |
|  |  | 22,989 |  |  |  | 5,997 |  |  |  | (62,203 | )
Provision (benefit) for income taxes |  | $ | 47,940 |  |  | $ | 44,107 |  |  | $ | (35,730 | )
A reconciliation of taxes based on the federal statutory rates and the provisions (benefits) for income taxes are summarized as follows (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Income taxes at the federal statutory rate |  | $ | 39,530 |  |  | $ | 38,469 |  |  | $ | 47,749 |
State income taxes, net of federal benefit |  |  | 5,303 |  |  |  | 4,913 |  |  |  | 3,246 |
Tax effect of permanent differences |  |  | 1,562 |  |  |  | 596 |  |  |  | (4,097 | )
Revaluation of deferred taxes |  |  | – |  |  |  | – |  |  |  | (82,862 | )
Other, net |  |  | 1,545 |  |  |  | 129 |  |  |  | 234 |
Provision (benefit) for income taxes |  | $ | 47,940 |  |  | $ | 44,107 |  |  | $ | (35,730 | )
The components of income taxes recorded in other comprehensive income and paid in capital consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Income tax expense related to components of other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value of available-for-sale securities |  |  | – |  |  |  | – |  |  |  | 183 |
Total |  | $ | – |  |  | $ | – |  |  | $ | 183 |
Paid in capital – stock based compensation |  | $ | – |  |  | $ | – |  |  | $ | – |
The following summarizes the components of net deferred income tax liabilities included in the balance sheet (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred income tax (assets) liabilities: |  |  |  |  |  |  |  |
Inventory |  | $ | (5,086 | ) |  | $ | (4,076 | )
Accounts receivable |  |  | (140 | ) |  |  | (231 | )
Finance lease obligations |  |  | (21,618 | ) |  |  | (16,202 | )
Finance and operating leases |  |  | (12,726 | ) |  |  | – |
Stock options |  |  | (8,749 | ) |  |  | (9,026 | )
Accrued liabilities |  |  | (2,989 | ) |  |  | (2,481 | )
State net operating loss carry forward |  |  | (2,381 | ) |  |  | (2,463 | )
State tax credit |  |  | (196 | ) |  |  | (312 | )
Other |  |  | (3,817 | ) |  |  | (3,276 | )
Difference between book and tax basis- Operating lease assets |  |  | 12,628 |  |  |  | – |
Difference between book and tax basis- Depreciation and amortization |  |  | 209,250 |  |  |  | 179,325 |
|  |  | 164,176 |  |  |  | 141,258 |
Valuation allowance |  |  | 121 |  |  |  | 50 |
Net deferred income tax liability |  | $ | 164,297 |  |  | $ | 141,308 |
On December 22, 2017, the Tax Act was enacted. The Tax Act included, among other items, a reduction of the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. The Tax Act made broad and complex changes to the U.S. tax code, some of which affected the Company’s 2017 year end results. Staff Accounting Bulletin No. 118 (SAB 118) provided guidance that allowed registrants to provide a reasonable estimate of the Tax Act in their financial statements and adjust the reported impact in a measurement period not to exceed one year. We applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2017 and throughout 2018. At December 31, 2017, the Company recognized a net tax benefit of $82.9 million, which was included as a component of income tax expense. The benefit recorded was primarily a result of the remeasurement of the Company’s deferred tax assets and liabilities at the rate in which they will reverse. Upon further analysis of certain aspects of the Tax Act and refinement of the Company’s calculations during the 12 months ended December 31, 2018, the Company adjusted its provisional amount by less than $100,000, which is included as a component of income tax expense from continuing operations. As of December 31, 2019, the Company had approximately $48.3 million in state net operating loss carry forwards that expire from 2019 to 2039, which result in a deferred tax asset of $2.3 million. The Company has evaluated whether its state net operating losses are realizable and has recorded a valuation allowance of $121,000 against them. The valuation allowance increased $71,000 over the prior year ending December 31, 2018. The Company had unrecognized income tax benefits totaling $3.0 million as a component of accrued liabilities as of December 31, 2019, and $2.4 million at December 31, 2018, the total of which, if recognized, would impact the Company’s effective tax rate. An unfavorable settlement would require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2019, 2018 and 2017, the Company recognized approximately $5,220, $(27,450), and $21,050 in interest expense (income). No amounts were accrued for penalties. The Company had approximately $144,000, $139,000 and $166,000 for the payment of interest accrued as of December 31, 2019, 2018 and 2017, respectively. The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next 12 months. As of December 31, 2019, the tax years ended December 31, 2016 through 2019 remained subject to audit by federal tax authorities and the tax years ended December 31, 2015 through 2019, remained subject to audit by state tax authorities. A reconciliation of the change in the unrecognized tax benefits is as follows (in thousands):
|  | 2019 |  |  | 2018 |  |  | 2017 |
Unrecognized tax benefits at beginning of period |  | $ | 2,389 |  |  | $ | 2,555 |  |  | $ | 2,401 |
Gross increases – tax positions in current year |  |  | 1,188 |  |  |  | 504 |  |  |  | 619 |
Reductions due to lapse of statute of limitations |  |  | (570 | ) |  |  | (670 | ) |  |  | (465 | )
Unrecognized tax benefits at end of period |  | $ | 3,007 |  |  | $ | 2,389 |  |  | $ | 2,555 |
Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to approximately $1.3 million at December 2019. Those earnings are considered to be indefinitely reinvested and accordingly, no provision for state, local and foreign withholding income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company may be subject to state and local taxes, and/or withholding taxes payable to the various foreign countries. The Company expects to be able to take a 100% dividend received deduction to offset any U.S. federal income tax liability on the undistributed earnings.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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