Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

Components of current and deferred income tax expense (benefit) are as follows ($000’s omitted):

 

	2022		2021		2020
Current expense (benefit)
Federal	$	615,434	$	430,686	$	159,677
State and other	100,223		73,671		24,580
	$	715,657	$	504,357	$	184,257
Deferred expense (benefit)
Federal	$	55,653	$	57,743	$	116,484
State and other	50,931		1,425		21,114
	$	106,584	$	59,168	$	137,598
Income tax expense (benefit)	$	822,241	$	563,525	$	321,855

Effective Income Tax Rate Reconciliation

The following table reconciles the statutory federal income tax rate to the effective income tax rate:

 

	2022		2021		2020
Income taxes at federal statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax	3.4		3.3		3.3
Federal tax credits	(0.9)		(1.2)		(4.8)
Deferred tax asset valuation allowance	0.4		(0.8)		(0.8)
Other	—		0.2		(0.1)
Effective rate	23.9	%	22.5	%	18.6	%

Deferred Tax Assets and Liabilities

Components of our net deferred tax asset are as follows ($000’s omitted): 

	At December 31,
	2022		2021
Deferred tax assets:
Accrued insurance	$	138,289	$	132,386
Inventory valuation reserves	58,339		62,806
Capitalized inventory expenses	32,620		13,839
State NOL carryforwards	105,609		144,746
Other	66,500		59,667
	401,357		413,444
Deferred tax liabilities:
Deferred income	(439,863)		(367,285)
Fixed assets and intangibles	(31,921)		(21,324)
Other	(31,802)		(26,151)
	(503,586)		(414,760)
Valuation allowance	(30,869)		(25,165)
Net deferred tax asset (liability)	$	(133,098)	$	(26,481)

Summary of Income Tax Contingencies

A reconciliation of the change in the unrecognized tax benefits is as follows ($000’s omitted): 

	2022		2021		2020
Unrecognized tax benefits, beginning of period	$	22,536	$	30,855	$	40,300
Increases related to positions taken during a prior period	—		1,428		—
Decreases related to positions taken during a prior period	(303)		(8,896)		(12,981)
Increases related to positions taken during the current period	1,450		267		11,001
Decreases related to settlements with taxing authorities	—		—		(7,465)
Decreases related to lapse of the applicable statute of limitations	(71)		(1,118)		—
Unrecognized tax benefits, end of period	$	23,612	$	22,536	$	30,855