Income Taxes

12 Months Ended

Dec. 30, 2023

Income Taxes

(4) Income Taxes

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

	Fiscal Years
	2023			2022			2021
Current:
Federal	$	76,827		$	116,642		$	104,640
State		13,305			23,309			18,462
Foreign		1,278			1,958			856
Total current	$	91,410		$	141,909		$	123,958
Deferred:
Federal	$	(8,410	)	$	(3,945	)	$	(3,278	)
State		701			(1,415	)		(512	)
Total deferred	$	(7,709	)	$	(5,360	)	$	(3,790	)
Income taxes	$	83,701		$	136,549		$	120,168

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

	Dec. 30, 2023		Dec. 31, 2022
Deferred tax assets:
Receivable valuations	$	6,616	$	5,838
Share-based payments		2,550		5,021
Self-insured claims		3,376		3,205
Other		10,412		11,381
Total deferred tax assets	$	22,954	$	25,445
Deferred tax liabilities:
Operating property	$	39,117	$	49,092
Goodwill		4,107		3,892
Other		3,718		3,895
Total deferred tax liabilities	$	46,942	$	56,879
Net deferred tax liability	$	23,988	$	31,434

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

	Fiscal Years
	2023			2022			2021
Income taxes at federal income tax rate	$	73,100		$	119,167		$	105,355
State income taxes, net of federal income tax benefit		11,250			16,596			14,260
Non-deductible executive compensation		2,309			3,552			2,946
Meals and entertainment exclusion		520			200			—
Share-based payments		(2,832	)		(2,958	)		(1,070	)
Research and development credits		(1,672	)		(1,526	)		(2,069	)
Other, net		1,026			1,518			746
Income taxes	$	83,701		$	136,549		$	120,168

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 2019 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 30, 2023 and December 31, 2022, the Company had $4,467,000 and $3,046,000, 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 30, 2023 and December 31, 2022, there was $1,249,000 and $845,000, 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 2024.

The following table summarizes the rollforward of the total amounts of gross unrecognized tax benefits for fiscal years 2023 and 2022 (in thousands):

	Fiscal Years
	2023			2022
Gross unrecognized tax benefits – beginning of the year	$	3,726		$	2,845
Gross increases related to current year tax positions		953			789
Gross increases related to prior year tax positions		1,570			792
Gross decreases related to prior year tax positions		—			(83	)
Lapse of statute of limitations		(795	)		(617	)
Gross unrecognized tax benefits – end of the year	$	5,454		$	3,726

Landstar paid income taxes of $92,695,000 in fiscal year 2023, $158,715,000 in fiscal year 2022 and $104,844,000 in fiscal year 2021.