Income Taxes

12 Months Ended

Dec. 27, 2014

Income Taxes

(5)    Income Taxes

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

	Fiscal Year
	2014		2013		2012
Current:
Federal	$	68,722	$	53,089	$	64,148
State		7,031		4,643		2,305
Canadian		1,199		683		1,013
Total current	$	76,952	$	58,415	$	67,466
Deferred:
Federal	$	5,234	$	5,758	$	3,462
State		200		284		135
Total deferred	$	5,434	$	6,042	$	3,597
Income taxes	$	82,386	$	64,457	$	71,063

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

	Dec. 27, 2014		Dec. 28, 2013
Deferred tax assets:
Receivable valuations	$	3,623	$	3,354
Share-based payments		2,939		3,458
Self-insured claims		5,353		5,180
Other		3,616		3,863
Total deferred tax assets	$	15,531	$	15,855
Deferred tax liabilities:
Operating property	$	46,745	$	41,933
Goodwill		5,619		5,553
Other		2,192		1,960
Total deferred tax liabilities	$	54,556	$	49,446
Net deferred tax liability	$	39,025	$	33,591

Income from discontinued operations included a deferred tax benefit of $1,342,000 in 2013 and a deferred tax expense of $664,000 in 2012.

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

	Fiscal Year
	2014			2013			2012
Income taxes at federal income tax rate	$	77,418		$	60,683		$	69,170
State income taxes, net of federal income tax benefit		4,532			3,260			1,486
Meals and entertainment exclusion		777			919			919
Share-based payments		(239	)		184			(122	)
Other, net		(102	)		(589	)		(390	)
Income taxes	$	82,386		$	64,457		$	71,063

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 2010 and prior years. The Company’s wholly owned Canadian subsidiary, Landstar Canada, Inc., is subject to Canadian income and other taxes.

As of December 27, 2014 and December 28, 2013, the Company had $1,836,000 and $1,583,000, 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 27, 2014 and December 28, 2013 there was $744,000 and $628,000, 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 2015.

The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2014 and 2013 (in thousands):

	Fiscal Year
	2014			2013
Gross unrecognized tax benefits — beginning of the year	$	2,261		$	2,329
Gross increases related to current year tax positions		373			303
Gross increases related to prior year tax positions		310			111
Gross decreases related to prior year tax positions		(109	)		(104	)
Settlements		(34	)		(72	)
Lapse of statute of limitations		(181	)		(306	)
Gross unrecognized tax benefits — end of the year	$	2,620		$	2,261

Landstar paid income taxes of $98,506,000 in 2014, $64,255,000 in 2013 and $71,033,000 in 2012.