XML 32 R14.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 29, 2018
Income Taxes | (5) Income Taxes The provisions for income taxes consisted of the following (in thousands):
|  | Fiscal Years |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 60,650 |  |  | $ | 72,025 |  |  | $ | 68,548 |
State |  |  | 9,410 |  |  |  | 8,312 |  |  |  | 6,668 |
Foreign |  |  | 993 |  |  |  | 500 |  |  |  | 563 |
Total current |  | $ | 71,053 |  |  | $ | 80,837 |  |  | $ | 75,779 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,730 |  |  | $ | (17,110 | ) |  | $ | 6,104 |
State |  |  | 385 |  |  |  | 79 |  |  |  | 224 |
Total deferred |  | $ | 2,115 |  |  | $ | (17,031 | ) |  | $ | 6,328 |
Income taxes |  | $ | 73,168 |  |  | $ | 63,806 |  |  | $ | 82,107 |
On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The legislation significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. With respect to the change in corporate tax rates, the Tax Reform Act permanently reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In connection with this reduction in the U.S. corporate income tax rate, the Company revalued its ending net deferred tax liabilities at December 30, 2017 resulting in a provisional $20,430,000 tax benefit in the Company’s consolidated statement of income for the year ended December 30, 2017. With respect to the repatriation tax on deemed repatriated earnings of foreign subsidiaries, the Tax Reform Act provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”) through the year ended December 31, 2017. The Company had an estimated $17,981,000 of undistributed foreign E&P at the Company’s Canadian subsidiary, Landstar Canada, Inc., subject to the deemed mandatory repatriation and, accordingly, recognized a provisional $900,000 of income tax expense in the Company’s consolidated statement of income for the year ended December 30, 2017. After the utilization of existing tax credits, the Company paid U.S. federal cash taxes of approximately $500,000 on the deemed mandatory repatriation in 2018. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 30, 2017. The accounting was complete when the 2017 U.S. corporate income tax return was filed in 2018 and no significant adjustments were made to the previously recognized provisional amounts. Also during fiscal year 2017, the Company adopted ASU 2016-09. As required by ASU 2016-09, the Company recognized $2,060,000 and $1,299,000 of excess tax benefits on stock-based awards in its provision for income taxes in the 2018 and 2017 fiscal years, respectively. Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities consisted of the following (in thousands):
|  | Dec. 29, 2018 |  |  | Dec. 30, 2017 |
Deferred tax assets: |  |  |  |  |  |  |  |
Receivable valuations |  | $ | 3,414 |  |  | $ | 3,244 |
Share-based payments |  |  | 5,286 |  |  |  | 2,182 |
Self-insured claims |  |  | 4,201 |  |  |  | 4,688 |
Other |  |  | 3,843 |  |  |  | 3,666 |
Total deferred tax assets |  | $ | 16,744 |  |  | $ | 13,780 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Operating property |  | $ | 48,553 |  |  | $ | 43,105 |
Goodwill |  |  | 3,812 |  |  |  | 3,773 |
Other |  |  | 1,608 |  |  |  | 2,016 |
Total deferred tax liabilities |  | $ | 53,973 |  |  | $ | 48,894 |
Net deferred tax liability |  | $ | 37,229 |  |  | $ | 35,114 |
The following table summarizes the differences between income taxes calculated at the federal income tax rates of 21% for 2018 and 35% for 2017 and 2016, respectively, on income before income taxes and the provisions for income taxes (in thousands):
|  | Fiscal Years |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income taxes at federal income tax rate |  | $ | 68,960 |  |  | $ | 84,281 |  |  | $ | 76,810 |
State income taxes, net of federal income tax benefit |  |  | 7,713 |  |  |  | 5,417 |  |  |  | 4,505 |
Non-deductible executive compensation |  |  | 1,012 |  |  |  | — |  |  |  | — |
Meals and entertainment exclusion |  |  | 719 |  |  |  | 1,021 |  |  |  | 958 |
Share-based payments |  |  | (2,138 | ) |  |  | (1,549 | ) |  |  | (239 | )
Section 199 deductions and R&D credits |  |  | (3,309 | ) |  |  | (5,546 | ) |  |  | (250 | )
Tax Reform Act |  |  | — |  |  |  | (19,530 | ) |  |  | — |
Other, net |  |  | 211 |  |  |  | (288 | ) |  |  | 323 |
Income taxes |  | $ | 73,168 |  |  | $ | 63,806 |  |  | $ | 82,107 |
The Company files a consolidated U.S. federal income tax return. The Company or its subsidiaries file state tax returns in the majority of the U.S. state tax jurisdictions. With few exceptions, the Company and its subsidiaries are no longer subject to U.S. federal or state income tax examinations by tax authorities for 2014 and prior years. The Company’s wholly owned Canadian subsidiary, Landstar Canada, Inc., is subject to Canadian income and other taxes. The Company’s wholly owned Mexican subsidiary, Landstar Holdings, S. de R.L.C.V. and approximately 79% owned subsidiaries, Landstar Metro, S.A.P.I. de C.V. and Landstar Metro Servicios S.A.P.I. de C.V. are subject to Mexican and U.S. income and other taxes. As of December 29, 2018 and December 30, 2017, the Company had $2,403,000 and $3,670,000, respectively, of net unrecognized tax benefits representing the provision for the uncertainty of certain tax positions plus a component of interest and penalties. Estimated interest and penalties on the provision for the uncertainty of certain tax positions is included in income tax expense. At December 29, 2018 and December 30, 2017 there was $653,000 and $627,000, respectively, accrued for estimated interest and penalties related to the uncertainty of certain tax positions. The Company does not currently anticipate any significant increase or decrease to the unrecognized tax benefit during fiscal year 2019. The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2018 and 2017 (in thousands):
|  | Fiscal Years |
|  | 2018 |  |  | 2017 |
Gross unrecognized tax benefits – beginning of the year |  | $ | 4,812 |  |  | $ | 2,635 |
Gross increases related to current year tax positions |  |  | 714 |  |  |  | 645 |
Gross increases related to prior year tax positions |  |  | 370 |  |  |  | 2,189 |
Gross decreases related to prior year tax positions |  |  | (1,575 | ) |  |  | (75 | )
Settlements |  |  | (159 | ) |  |  | (100 | )
Lapse of statute of limitations |  |  | (643 | ) |  |  | (482 | )
Gross unrecognized tax benefits – end of the year |  | $ | 3,519 |  |  | $ | 4,812 |
Landstar paid income taxes of $75,124,000 in fiscal year 2018, $86,607,000 in fiscal year 2017 and $69,067,000 in fiscal year 2016.

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration