Income Taxes

12 Months Ended

Dec. 25, 2021

Income Taxes

(5) Income Taxes

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

	Fiscal Years
	2021			2020			2019
Current:
Federal	$	104,640		$	47,955		$	52,422
State		18,462			7,249			10,367
Foreign		856			557			504
Total current	$	123,958		$	55,761		$	63,293
Deferred:
Federal	$	(3,278	)	$	1,523		$	4,212
State		(512	)		(393	)		555
Total deferred	$	(3,790	)	$	1,130		$	4,767
Income taxes	$	120,168		$	56,891		$	68,060

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

	Dec. 25, 2021		Dec. 26, 2020
Deferred tax assets:
Receivable valuations	$	4,112	$	4,286
Share-based payments		7,000		2,020
Self-insured claims		3,696		3,613
Other		10,354		6,056
Total deferred tax assets	$	25,162	$	15,975
Deferred tax liabilities:
Operating property	$	57,903	$	52,014
Goodwill		3,958		3,772
Other		2,409		3,087
Total deferred tax liabilities	$	64,270	$	58,873
Net deferred tax liability	$	39,108	$	42,898

The following table summarizes the differences between income taxes calculated at the federal income tax rates of 21% on income before income taxes and the provisions for income taxes (in thousands):

	Fiscal Years
	2021			2020			2019
Income taxes at federal income tax rate	$	105,355		$	52,289		$	62,110
State income taxes, net of federal income tax benefit		14,260			5,375			8,876
Non-deductible executive compensation		2,946			96			—
Meals and entertainment exclusion		—			326			644
Share-based payments		(1,070	)		(977	)		(3,093	)
Research and development credits		(2,069	)		(717	)		(714	)
Other, net		746			499			237
Income taxes	$	120,168		$	56,891		$	68,060

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 2017 and prior years. The Company’s wholly-owned Canadian subsidiary, Landstar Canada, Inc., is subject to Canadian income and other taxes. The Company’s wholly-owned Mexican subsidiaries, Landstar Holdings, S. de R.L.C.V. and Landstar Metro, S.A.P.I. de C.V., are subject to Mexican income and other taxes. The Company’s Canadian and Mexican subsidiaries also may each be subject to U.S. income and other taxes.

As of December 25, 2021 and December 26, 2020, the Company had $2,344,000 and $2,030,000, 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 25, 2021 and December 26, 2020, there was $658,000 and $648,000, 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 2022.

The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2021 and 2020 (in thousands):

	Fiscal Years
	2021			2020
Gross unrecognized tax benefits – beginning of the year	$	2,585		$	3,014
Gross increases related to current year tax positions		782			349
Gross increases related to prior year tax positions		315			232
Gross decreases related to prior year tax positions		(17	)		—
Lapse of statute of limitations		(820	)		(1,010	)
Gross unrecognized tax benefits – end of the year	$	2,845		$	2,585

Landstar paid income taxes of $104,844,000 in fiscal year 2021, $47,589,000 in fiscal year 2020 and $67,317,000 in fiscal year 2019.