Note 6 - Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

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,
	2013		2012		2011
Current:
Federal	$	144,299	$	152,140	$	32,845
State and local		18,811		21,095		8,171
		163,110		173,235		41,016
Deferred:
Federal		41,811		12,458		110,495
State and local		6,265		8,594		7,216
		48,076		21,052		117,711
Total tax expense	$	211,186	$	194,287	$	158,727

Income tax expense attributable to earnings before income taxes differed from the amounts computed using the statutory federal income tax rate of 35% as follows (in thousands):

	Years ended December 31,
	2013			2012			2011
Income tax at federal statutory rate	$	193,749		$	176,624		$	145,506
State tax, net of federal effect		13,551			16,191			9,668
Nondeductible meals and entertainment		1,543			1,568			1,570
Change in effective state tax rate, net of federal benefit		3,708			126			1,611
Change in valuation allowance		(755	)		-			552
Other, net		(610	)		(222	)		(180	)
Total tax expense	$	211,186		$	194,287		$	158,727

Income taxes receivable was $7.5 million and $2.4 million at December 31, 2013 and 2012, respectively. These amounts have been included in other current assets 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, 2013 and 2012, are presented below (in thousands):

	December 31,
	2013			2012
Deferred tax assets:
Insurance accruals	$	14,938		$	9,713
Allowance for doubtful accounts		2,077			1,715
Compensation accrual		13,783			16,851
Deferred compensation accrual		25,398			25,997
Federal benefit of state uncertain tax positions		12,099			10,586
Capital loss carry-forward		1,443			2,197
Other		3,586			3,403
Total gross deferred tax assets		73,324			70,462
Valuation allowance		(1,994	)		(2,749	)
Total deferred tax assets, net of valuation allowance		71,330			67,713
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation		615,811			571,830
Prepaid permits and insurance, principally due to expensing for income tax purposes		24,554			19,069
Other		11,415			9,188
Total gross deferred tax liabilities		651,780			600,087
Net deferred tax liability	$	580,450		$	532,374

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 Sheet, as follows (in millions):

	December 31,
	2013			2012			2011
Beginning balance	$	25.8		$	17.4		$	17.3
Additions based on tax positions related to the current year		7.0			7.1			4.0
Additions/(reductions) based on tax positions taken in prior years		(1.2	)		4.2			(0.3	)
Reductions due to settlements		(0.1	)		-			(0.4	)
Reductions due to lapse of applicable statute of limitations		(1.8	)		(2.9	)		(3.2	)
Ending balance	$	29.7		$	25.8		$	17.4

At December 31, 2013 and 2012, we had a total of $29.7 million and $25.8 million, respectively, in gross unrecognized tax benefits.  Of these amounts, $19.3 million and $16.8 million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate in 2013 and 2012, respectively.  Interest and penalties related to income taxes are classified as interest expense in our Consolidated Financial Statements.  The amount of accrued interest and penalties during the years ended December 31, 2013, 2012, and 2011, was $1.9 million, $1.1 million, and $1.5 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, 2013 and 2012, was $4.2 million and $4.0 million, respectively.

Tax years 2010 and forward remain subject to examination by federal tax jurisdictions, while tax years 2003 and forward remain open for state jurisdictions.