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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income tax expense consisted of the following (in thousands):
| Years Ended December 31,
| 2012 |  | 2011 |  | 2010
Current: |  |  |  |  |
Federal | $ | 69,590 |  |  | $ | 6,275 |  |  | $ | 56,030 |
State | 10,088 |  |  | 6,664 |  |  | 11,195 |
Foreign | (478 | ) |  | 1,347 |  |  | 894 |
| 79,200 |  |  | 14,286 |  |  | 68,119 |
Deferred: |  |  |  |  |
Federal | (8,630 | ) |  | 50,297 |  |  | (8,523 | )
State | (438 | ) |  | 7,566 |  |  | (3,398 | )
| (9,068 | ) |  | 57,863 |  |  | (11,921 | )
Total income tax expense | $ | 70,132 |  |  | $ | 72,149 |  |  | $ | 56,198 |
The effective income tax rate differs from the federal corporate tax rate of 35% in 2012, 2011 and 2010 as follows (in thousands):
| Years Ended December 31,
| 2012 |  | 2011 |  | 2010
Tax at statutory rate | $ | 60,608 |  |  | $ | 61,217 |  |  | $ | 47,683 |
State income taxes, net of federal tax benefits | 6,273 |  |  | 9,250 |  |  | 5,068 |
Non-deductible meals and entertainment | 2,686 |  |  | 2,571 |  |  | 2,943 |
Income tax credits | (758 | ) |  | (1,517 | ) |  | (525 | )
Other, net | 1,323 |  |  | 628 |  |  | 1,029 |
Total income tax expense | $ | 70,132 |  |  | $ | 72,149 |  |  | $ | 56,198 |
At December 31, deferred tax assets and liabilities consisted of the following (in thousands):
| December 31,
| 2012 |  | 2011
Deferred tax assets: |  |  |
Insurance and claims accruals | $ | 73,211 |  |  | $ | 72,613 |
Allowance for uncollectible accounts | 7,813 |  |  | 6,913 |
Other | 9,416 |  |  | 8,382 |
Gross deferred tax assets | 90,440 |  |  | 87,908 |
Deferred tax liabilities: |  |  |
Property and equipment | 288,032 |  |  | 295,429 |
Prepaid expenses | 6,774 |  |  | 6,710 |
Other | 3,026 |  |  | 2,964 |
Gross deferred tax liabilities | 297,832 |  |  | 305,103 |
Net deferred tax liability | $ | 207,392 |  |  | $ | 217,195 |
These amounts are presented in the accompanying Consolidated Balance Sheets as of December 31 as follows (in thousands):
| December 31,
| 2012 |  | 2011
Current deferred tax asset | $ | 25,139 |  |  | $ | 25,805 |
Non-current deferred tax liability | 232,531 |  |  | 243,000 |
Net deferred tax liability | $ | 207,392 |  |  | $ | 217,195 |
We have not recorded a valuation allowance because we believe that all deferred tax assets are more likely than not to be realized as a result of our historical profitability, future taxable income and reversal of deferred tax liabilities. We recognized a $0.5 million increase in the net liability for unrecognized tax benefits for the year ended December 31, 2012 and a $2.2 million increase for the year ended December 31, 2011. We accrued interest expense of $0.2 million during 2012 and $0.4 million during 2011. If recognized, $7.4 million of unrecognized tax benefits as of December 31, 2012 and $6.9 million as of December 31, 2011 would impact our effective tax rate. Interest of $3.6 million as of December 31, 2012 and $3.4 million as of December 31, 2011 has been reflected as a component of the total liability. We expect no other significant increases or decreases for uncertain tax positions during the next twelve months. The reconciliations of beginning and ending gross balances of unrecognized tax benefits for 2012 and 2011 are shown below (in thousands).
| December 31,
| 2012 |  | 2011
Unrecognized tax benefits, beginning balance | $ | 10,827 |  |  | $ | 7,482 |
Gross increases – tax positions in prior period | 279 |  |  | 2,184 |
Gross increases – current-period tax positions | 788 |  |  | 1,219 |
Settlements | (331 | ) |  | (58 | )
Unrecognized tax benefits, ending balance | $ | 11,563 |  |  | $ | 10,827 |
We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2009 through 2011 are open for examination by the U.S. Internal Revenue Service (“IRS”), and various years are open for examination by state and foreign tax authorities. State and foreign jurisdictional statutes of limitations generally range from three to four years. In May 2010, the IRS began an audit of our 2007 and 2008 federal income tax returns. During the second quarter of 2012, we received a notice of deficiency including proposed penalties related to our like-kind exchange program for tractors and trailers (such program was discontinued in 2010). The proposed tax deficiency relates to timing differences for recognition of gains on sales of equipment and if upheld would allow us to file for tax refunds for tax years 2009-2011 relating to additional depreciation deductions. If the IRS position is upheld, we would be subject to interest charges, which we estimate as of December 31, 2012 to be approximately $2.1 million after considering the tax deductibility of the interest payments, and we believe it is unlikely that the IRS would prevail in the assessment of penalties. On July 19, 2012, we filed a petition in the United States Tax Court to contest the deficiency. The IRS responded to our petition on September 27, 2012. A pre-trial settlement conference has been scheduled for March 12, 2013. We believe our tax position complies with applicable tax law, and we will vigorously defend against the IRS position in tax court. We have not accrued a liability for any proposed penalties or interest because we believe we will ultimately prevail in this matter.

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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/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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=6907707&loc=d3e32537-109319 Reference 7: 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=6907707&loc=d3e32639-109319 Reference 8: 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=6907707&loc=d3e32559-109319 + Details
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