Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5. Income Taxes

The components of the income taxes expense (benefit) consisted of the following:

(In thousands)	2020			2019			2018
Current:
Federal	$	21,312		$	(1,210	)	$	7,575
State		3,498			1,782			3,076
Total current		24,810			572			10,651
Deferred:
Federal		(1,557	)		15,572			5,815
State		633			473			(464	)
Total deferred		(924	)		16,045			5,351
Total expense (benefit)	$	23,886		$	16,617		$	16,002

The federal statutory income tax rate is reconciled to the effective income tax rate as follows:

	2020			2019			2018
Federal statutory income tax rate		21	%		21	%		21	%
Increase in taxes arising from state income taxes, net of federal income tax benefit		4			2			3
Per diem and other non-deductible expenses		1			1			2
Federal tax credits		(1	)		(2	)		(2	)
Other, net		1			(1	)		(1	)
Effective tax rate		26	%		21	%		23	%

As of December 31, the net deferred tax liability consisted of the following:

(In thousands)	2020		2019
Deferred tax assets:
Reserves and accrued liabilities	$	12,050	$	9,050
Other		1,768		2,464
		13,818		11,514
Deferred tax liabilities:
Depreciation		131,650		130,686
Prepaid expenses		3,266		2,850
		134,916		133,536
Net deferred tax liability	$	121,098	$	122,022

We have not provided a valuation allowance against deferred tax assets at December 31, 2020 or 2019. We believe the deferred tax assets will be realized principally through future reversals of existing taxable temporary differences (deferred tax liabilities) and future taxable income.

Our reserves for unrecognized tax benefits were $4.1 million as of December 31, 2020 and $3.0 million as of December 31, 2019. The $1.1 million increase in the amount reserved in 2020 relates to current period tax positions less the removal of the reserve relating to years that have closed. If recognized, $4.0 million of the unrecognized tax benefits as of December 31, 2020 would favorably impact our effective tax rate. Potential interest and penalties related to unrecognized tax benefits of $12,000 and $13,000 were recognized in our financial statements as of December 31, 2020 and 2019, respectively. The federal statute of limitations remains open for 2017 and forward. We file tax returns in numerous state jurisdictions with varying statutes of limitations.