INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

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

	Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	17,624	$	23,741	$	42,049
State	7,661		12,423		12,787
Foreign	2,053		489		213
	27,338		36,653		55,049
Deferred:
Federal	10,019		38,521		27,593
State	(1,866)		4,032		1,895
	8,153		42,553		29,488
Total income tax expense	$	35,491	$	79,206	$	84,537

The effective income tax rate differs from the federal corporate tax rate of 21% in 2023, 2022, and 2021 as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Tax at statutory rate	$	31,034	$	68,205	$	72,663
State income taxes, net of federal tax benefits	4,578		12,999		11,599
Other, net	(121)		(1,998)		275
Total income tax expense	$	35,491	$	79,206	$	84,537

The following table presents our deferred income tax assets and liabilities (in thousands):

	December 31,
	2023		2022
Deferred income tax assets:
Insurance and claims accruals	$	57,168	$	59,275
Compensation-related accruals	9,931		10,767
Allowance for uncollectible accounts	2,797		3,218
Operating lease liabilities	8,733		10,324
Other	2,235		981
Gross deferred income tax assets	80,864		84,565
Deferred income tax liabilities:
Property and equipment	351,352		344,896
Investments in equity securities	12,240		12,818
Prepaid expenses	7,118		7,526
Operating lease right-of-use assets	8,327		10,056
Investment in partnership	18,790		19,745
Other	3,217		2,802
Gross deferred income tax liabilities	401,044		397,843
Net deferred income tax liability	$	320,180	$	313,278

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

We recognized a $201 thousand decrease, a $54 thousand increase, and a $49 thousand increase in the net liability for unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021, respectively. We recognized net interest expense of $70 thousand, $42 thousand, and $10 thousand during 2023, 2022, and 2021, respectively. If recognized, $1.7 million, $2.0 million, and $1.9 million of unrecognized tax benefits as of December 31, 2023, 2022 and 2021, respectively, would impact our effective tax rate. Interest of $0.5 million as of December 31, 2023 and 2022 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 12 months. The reconciliations of beginning and ending gross balances of unrecognized tax benefits are shown below (in thousands).

	December 31,
	2023		2022		2021
Unrecognized tax benefits, beginning balance	$	2,495	$	2,425	$	2,363
Gross increases – tax positions in prior period	161		99		65
Gross increases – current period tax positions	120		320		320
Settlements	(531)		(349)		(323)
Unrecognized tax benefits, ending balance	$	2,245	$	2,495	$	2,425

We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2020 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.