Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2021

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)	2021		2020			2019
Current:
Federal	$	18,872	$	21,312		$	(1,210	)
State		3,367		3,498			1,782
Total current		22,239		24,810			572
Deferred:
Federal		3,462		(1,557	)		15,572
State		603		633			473
Total deferred		4,065		(924	)		16,045
Total expense (benefit)	$	26,304	$	23,886		$	16,617

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

	2021			2020			2019
Federal statutory income tax rate		21	%		21	%		21	%
Increase in taxes arising from state income taxes, net of federal income tax benefit		3			4			2
Per diem and other non-deductible expenses		-			1			1
Federal tax credits		-			(1	)		(2	)
Other, net		-			1			(1	)
Effective tax rate		24	%		26	%		21	%

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

(In thousands)	2021		2020
Deferred tax assets:
Reserves and accrued liabilities	$	11,975	$	12,050
Other		1,597		1,768
		13,572		13,818
Deferred tax liabilities:
Depreciation		135,306		131,650
Prepaid expenses		3,429		3,266
		138,735		134,916
Net deferred tax liability	$	125,163	$	121,098

We have not provided a valuation allowance against deferred tax assets at December 31, 2021 or 2020. 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 at each of December 31, 2021 and 2020. If recognized, $4.0 million of the unrecognized tax benefits as of December 31, 2021 would favorably impact our effective tax rate. Potential interest and penalties related to unrecognized tax benefits of $10,000 and $12,000 were recognized in our financial statements as of December 31, 2021 and 2020, respectively. The federal statute of limitations remains open for 2018 and forward. We file tax returns in numerous state jurisdictions with varying statutes of limitations.