Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income tax expense consisted of the following (in thousands):

	Years Ended December 31,
	2020		2019		2018
Current:
Federal	$	53,297	$	29,102	$	7,428
State	12,106		9,547		9,841
Foreign	446		(88)		770
	65,849		38,561		18,039
Deferred:
Federal	(8,988)		15,094		37,284
State	(1,245)		1,307		410
	(10,233)		16,401		37,694
Total income tax expense	$	55,616	$	54,962	$	55,733

The effective income tax rate differs from the federal corporate tax rate of 21% in 2020, 2019, and 2018 as follows (in thousands):

	Years Ended December 31,
	2020		2019		2018
Tax at statutory rate	$	47,186	$	46,600	$	47,015
State income taxes, net of federal tax benefits	8,580		8,575		8,098
Non-deductible meals and entertainment	903		1,117		1,044
Income tax credits	(1,200)		(1,600)		(1,800)
Equity compensation	(821)		(207)		(312)
Other, net	968		477		1,688
Total income tax expense	$	55,616	$	54,962	$	55,733

At December 31, deferred income tax assets and liabilities consisted of the following (in thousands):

	December 31,
	2020		2019
Deferred income tax assets:
Insurance and claims accruals	$	54,913	$	48,537
Compensation-related accruals	16,054		8,067
Allowance for uncollectible accounts	4,070		3,690
Other	5,374		1,863
Gross deferred income tax assets	80,411		62,157
Deferred income tax liabilities:
Property and equipment	308,145		305,575
Prepaid expenses	6,333		4,928
Other	3,803		1,323
Gross deferred income tax liabilities	318,281		311,826
Net deferred income tax liability	$	237,870	$	249,669

Deferred income tax assets are more likely than not to be realized as a result of future taxable income and reversal of deferred income tax liabilities.

We recognized a $141 thousand decrease in the net liability for unrecognized tax benefits for the year ended December 31, 2020, and a $31 thousand decrease for the year ended December 31, 2019. We accrued interest expense of $0.1 million during 2020 and 2019, excluding from both years the reversal of accrued interest related to the adjustment of uncertain tax positions. If recognized, $1.8 million and $2.0 million of unrecognized tax benefits as of December 31, 2020 and 2019, respectively, would impact our effective tax rate. Interest of $0.4 million as of December 31, 2020 and 2019 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 2020 and 2019 are shown below (in thousands).

	December 31,
	2020		2019
Unrecognized tax benefits, beginning balance	$	2,541	$	2,577
Gross increases – tax positions in prior period	92		127
Gross increases – current period tax positions	220		222
Settlements	(490)		(385)
Unrecognized tax benefits, ending balance	$	2,363	$	2,541

We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2017 and forward 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.