Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5. Income Taxes

The components of the income taxes expense consisted of the following:

(In thousands)	2023			2022		2021
Current:
Federal	$	33,416		$	18,025	$	18,872
State		4,706			3,914		3,367
Total current		38,122			21,939		22,239
Deferred:
Federal		(13,526	)		9,795		3,462
State		(1,053	)		2,083		603
Total deferred		(14,579	)		11,878		4,065
Total expense	$	23,543		$	33,817	$	26,304

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

	2023			2022			2021
Federal statutory income tax rate		21	%		21	%		21	%
Increase in taxes arising from state income taxes, net of federal income tax benefit		3			3			3
Per diem and other non-deductible expenses		2			-			-
Other, net		(1	)		(1	)		-
Effective tax rate		25	%		23	%		24	%

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

(In thousands)	2023		2022
Deferred tax assets:
Reserves and accrued liabilities	$	13,126	$	13,244
Other		1,212		1,597
		14,338		14,841
Deferred tax liabilities:
Depreciation		133,634		148,285
Prepaid expenses		3,166		3,597
		136,800		151,882
Net deferred tax liability	$	122,462	$	137,041

We have not provided a valuation allowance against deferred tax assets at December 31, 2023 or 2022. 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 $434,000 as of December 31, 2023 and $438,000 as of December 31, 2022. The $4,000 decrease in the amount reserved relates to current period tax positions. If recognized, $343,000 of the unrecognized tax benefits as of December 31, 2023 would favorably impact our effective tax rate. Potential interest and penalties related to unrecognized tax benefits of $14,000 and $10,000 were recognized in our financial statements as of December 31, 2023 and 2022, respectively. The federal statute of limitations remains open for 2020 and forward. We file tax returns in numerous state jurisdictions with varying statutes of limitations.