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Income Taxes
12 Months Ended
Dec. 26, 2015
Income Taxes

(5)    Income Taxes

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

 

     Fiscal Years  
     2015      2014      2013  

Current:

        

Federal

   $ 74,289       $ 68,722       $ 53,089   

State

     9,550         7,031         4,643   

Canadian

     437         1,199         683   
  

 

 

    

 

 

    

 

 

 

Total current

   $ 84,276       $ 76,952       $ 58,415   
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

   $ 6,524       $ 5,234       $ 5,758   

State

     268         200         284   
  

 

 

    

 

 

    

 

 

 

Total deferred

   $ 6,792       $ 5,434       $ 6,042   
  

 

 

    

 

 

    

 

 

 

Income taxes

   $ 91,068       $ 82,386       $ 64,457   
  

 

 

    

 

 

    

 

 

 

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

 

     Dec. 26,
2015
     Dec. 27,
2014
 

Deferred tax assets:

     

Receivable valuations

   $ 3,832       $ 3,623   

Share-based payments

     2,894         2,939   

Self-insured claims

     4,132         5,353   

Other

     3,836         3,616   
  

 

 

    

 

 

 

Total deferred tax assets

   $ 14,694       $ 15,531   
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Operating property

   $ 52,547       $ 46,745   

Goodwill

     5,877         5,619   

Other

     2,087         2,192   
  

 

 

    

 

 

 

Total deferred tax liabilities

   $ 60,511       $ 54,556   
  

 

 

    

 

 

 

Net deferred tax liability

   $ 45,817       $ 39,025   
  

 

 

    

 

 

 

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

 

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 Years  
     2015      2014      2013  

Income taxes at federal income tax rate

   $ 83,565       $ 77,418       $ 60,683   

State income taxes, net of federal income tax benefit

     7,201         4,532         3,260   

Meals and entertainment exclusion

     946         777         919   

Share-based payments

     (61      (239      184   

Other, net

     (583      (102      (589
  

 

 

    

 

 

    

 

 

 

Income taxes

   $ 91,068       $ 82,386       $ 64,457   
  

 

 

    

 

 

    

 

 

 

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 2011 and prior years. The Company’s wholly owned Canadian subsidiary, Landstar Canada, Inc., is subject to Canadian income and other taxes.

As of December 26, 2015 and December 27, 2014, the Company had $1,899,000 and $1,836,000, 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 26, 2015 and December 27, 2014 there was $727,000 and $744,000, 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 fiscal year 2016.

The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2015 and 2014 (in thousands):

 

     Fiscal Years  
     2015      2014  

Gross unrecognized tax benefits — beginning of the year

   $ 2,620       $ 2,261   

Gross increases related to current year tax positions

     482         373   

Gross increases related to prior year tax positions

     340         310   

Gross decreases related to prior year tax positions

     (195      (109

Settlements

             (34

Lapse of statute of limitations

     (543      (181
  

 

 

    

 

 

 

Gross unrecognized tax benefits — end of the year

   $ 2,704       $ 2,620   
  

 

 

    

 

 

 

Landstar paid income taxes of $74,619,000 in fiscal year 2015, $98,506,000 in fiscal year 2014 and $64,255,000 in fiscal year 2013.