(5)

Income Taxes

The provisions for income taxes consisted of the following (in thousands):


	Fiscal Year
	2011		2010			2009
Current:
Federal	$	53,413	$	46,164		$	35,878
State		3,247		2,199			656
Canadian		1,023		878			809

	$	57,683	$	49,241		$	37,343

Deferred:
Federal	$	9,056	$	801		$	2,035
State		449		(276	)		384

		9,505		525			2,419

Income taxes	$	67,188	$	49,766		$	39,762

Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities consisted of the following (in thousands):


	Dec. 31, 2011		Dec. 25, 2010
Deferred tax assets:
Receivable valuations	$	4,570	$	5,014
Share-based payments		5,843		5,797
Self-insured claims		5,940		5,861
Other		5,316		6,137

	$	21,669	$	22,809

Deferred tax liabilities:
Operating property	$	38,040	$	29,084
Other		8,259		8,284

	$	46,299	$	37,368

Net deferred tax liability	$	24,630	$	14,559

The following table summarizes the differences between income taxes calculated at the federal income tax rate of 35% on income before income taxes and the provisions for income taxes (in thousands):


	Fiscal Year
	2011		2010		2009
Income taxes at federal income tax rate	$	63,047	$	47,722	$	38,399
State income taxes, net of federal income tax benefit		2,424		695		676
Meals and entertainment exclusion		972		691		870
Share-based payments		708		550		636
Other, net		37		108		(819	)

Income taxes	$	67,188	$	49,766	$	39,762

As of December 31, 2011 and December 25, 2010, the Company had $5,069,000 and $6,415,000, respectively, of net unrecognized tax benefits representing the provision for the uncertainty of certain tax positions plus a component of interest and penalties. Estimated interest and penalties on the provision for the uncertainty of certain tax positions is included in income tax expense. At December 31, 2011 and December 25, 2010 there was $2,214,000 and $2,797,000, respectively, accrued for estimated interest and penalties related to the uncertainty of certain tax positions. The Company does not currently anticipate any significant increase or decrease to the unrecognized tax benefit during 2012.

The Company files a consolidated U.S. federal income tax return. The Company or its subsidiaries file state tax returns in the majority of the U.S. state tax jurisdictions. With few exceptions, the Company and its subsidiaries are no longer subject to U.S. federal or state income tax examinations by tax authorities for 2007 and prior years. The Company's wholly owned Canadian subsidiary, Landstar Canada, Inc., is subject to Canadian income and other taxes.

The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2011 and 2010 (in thousands):


	Fiscal Year
	2011			2010
Gross unrecognized tax benefits — beginning of the year	$	9,209		$	11,966
Gross increases related to current year tax positions		553			210
Gross increases related to prior year tax positions		755			412
Gross decreases related to prior year tax positions		(2,098	)		(2,822	)
Settlements		(274	)		—
Lapse of statute of limitations		(781	)		(557	)

Gross unrecognized tax benefits — end of the year	$	7,364		$	9,209

Landstar paid income taxes of $59,442,000 in 2011, $51,542,000 in 2010 and $32,913,000 in 2009.