Note 5. Income Taxes

The components of the provision for income taxes are as follows:



	Year Ended December 31,
(In thousands)	2012		2011		2010
Current:
Federal	$	74,074	$	27,470	$	34,255
State	11,890		9,796		6,896
	85,964		37,266		41,151
Deferred:
Federal	14,978		39,934		6,695
State	2,704		3,414		929
	17,682		43,348		7,624
Total provision for income taxes	$	103,646	$	80,614	$	48,775

The following is a reconciliation of the U.S. statutory federal income tax rates with our effective income tax rates for 2012, 2011 and 2010:



	Year Ended December 31,
(In thousands)	2012			2011			2010
Tax provision at statutory rate	$	95,584		$	77,029		$	43,549
State income taxes, net of federal benefit	10,211			7,480			5,002
Meals and entertainment disallowance	828			721			616
Tax credits	(2,609		)	(4,453		)	(744		)
Other, net	(368		)	(163		)	352
Total provision for income taxes	$	103,646		$	80,614		$	48,775

Deferred tax assets and liabilities consist of the following:



	December 31,
(In thousands)	2012			2011
Deferred tax assets:
Claims and insurance reserves	$	32,499		$	30,003
Allowance for doubtful accounts	2,829			2,827
Accrued vacation	12,399			9,339
Deferred compensation	17,734			14,441
Other	9,764			5,992
Total deferred tax assets	75,225			62,602
Valuation allowance	(559		)	—
Net deferred tax assets	74,666			62,602

Deferred tax liabilities:
Depreciation and amortization	(197,875		)	(169,309		)
Unrecognized revenue	(8,171		)	(6,995		)
Other	(1,752		)	(1,748		)
Total deferred tax liabilities	(207,798		)	(178,052		)
Net deferred tax liability	$	(133,132	)	$	(115,450	)

Our net deferred tax liability consists of the following:



	December 31,
(In thousands)	2012			2011
Current deferred tax asset	$	20,054		$	19,466
Noncurrent deferred tax liability	(153,186		)	(134,916		)
Net deferred tax liability	$	(133,132	)	$	(115,450	)

As of December 31, 2012, the Company had various state tax credit carryforwards of approximately $3.8 million that are scheduled to expire in five to fifteen years. As of December 31, 2012, the Company has established a valuation allowance in the amount of $559,000 due to the uncertainty of realization of these tax credits.

We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We remain open to examination by the Internal Revenue Service for tax years 2009 through 2012. We remain open to examination by state tax jurisdictions for tax years 2008 through 2012.

Changes in our liability for unrecognized tax benefits could affect our effective tax rate, if recognized, but we do not expect any material changes within the next twelve months. The Company's liability for unrecognized tax benefits was immaterial as of December 31, 2012 and 2011. Interest and penalties related to uncertain tax positions, which are immaterial, are recorded in our Provision for Income Taxes on our Statement of Operations.