Note 6 - Income Taxes

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

6. Income Taxes

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

	Years ended December 31,
	2024			2023			2022
Current:
Federal	$	244,770		$	106,004		$	85,855
State and local		25,328			35,030			51,078
Foreign		8,380			-			-
		278,478			141,034			136,933
Deferred:
Federal		(88,016	)		66,000			172,334
State and local		(1,832	)		(434	)		2,755
		(89,848	)		65,566			175,089
Total tax expense/(benefit)	$	188,630		$	206,600		$	312,022

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,
	2024		2023			2022
Income tax at federal statutory rate	$	159,498	$	196,326		$	269,088
State tax, net of federal effect		21,051		28,997			41,624
Federal 1341 Claim		-		(14,616	)		-
Other, net		8,081		(4,107	)		1,310
Total tax expense	$	188,630	$	206,600		$	312,022

Income taxes receivable was $116.7 million and $90.5 million at December 31, 2024 and 2023, 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, 2024 and 2023, are presented below (in thousands):

	December 31,
	2024			2023
Deferred tax assets:
Insurance accruals	$	69,168		$	58,614
Allowance for doubtful accounts		12,584			10,766
Compensation accrual		9,882			8,003
Deferred compensation accrual		26,805			36,309
Federal benefit of state uncertain tax positions		17,693			17,491
Lease liabilities		74,858			82,048
State NOL carry-forward		4,235			5,478
Other		3,815			3,890
Total gross deferred tax assets		219,040			222,599
Valuation allowance		(4,235	)		(5,478	)
Total deferred tax assets, net of valuation allowance		214,805			217,121
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation		1,001,537			1,057,922
Prepaid permits and insurance, principally due to expensing for income tax purposes		35,592			63,880
Lease right-of-use assets		73,925			81,416
Total gross deferred tax liabilities		1,111,054			1,203,218
Net deferred tax liability	$	896,249		$	986,097

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,
	2024			2023			2022
Beginning balance	$	80.9		$	89.1		$	78.5
Additions based on tax positions related to the current year		13.3			16.2			25.8
Additions/(reductions) based on tax positions taken in prior years		(2.9	)		0.5			2.8
Reductions due to settlements		(1.4	)		(14.6	)		(8.0	)
Reductions due to lapse of applicable statute of limitations		(11.9	)		(10.3	)		(10.0	)
Ending balance	$	78.0		$	80.9		$	89.1

At December 31, 2024 and 2023, we had a total of $78.0 million and $80.9 million, respectively, in gross unrecognized tax benefits.  Of these amounts, $63.4million and $65.6 million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate in 2024 and 2023, 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, 2024, 2023, and 2022, was $7.8 million, $5.3 million, and $4.3 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, 2024 and 2023, was $13.1 million and $9.0 million, respectively. No material change in unrecognized tax benefits is expected in the next 12 months.

Tax years 2017 and forward remain subject to examination by federal tax jurisdictions, while tax years 2014 and forward remain open for state jurisdictions.