Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Significant components of the provision for income taxes from continuing operations

Significant components of the provision for income taxes from continuing operations are as follows:



	For the Years Ended December 31,
	2013		2012		2011
	(in thousands)
Current:
Federal	$	86,437	$	32,656	$	1,866
State and local	6,595		3,250		74
Foreign	413		963		263
Total current expense	93,445		36,869		2,203
Deferred:
Federal	11,658		27,870		42,148
State and local	389		1,385		2,032
Total deferred expense (benefit)	12,047		29,255		44,180
Total income tax expense (benefit)	$	105,492	$	66,124	$	46,383

Reconciliation of income tax expense

The reconciliation of income tax expense computed at the federal statutory tax rates to income tax expense from continuing operations is as follows:



	For the Years Ended December 31,
	2013			2012			2011
	(in thousands)
Expected provision at federal statutory tax rate	$	98,843		$	61,104		$	42,991
State and foreign tax expense, net of federal benefit	4,695			3,726			2,255
Interest and dividend on preferred stock	—			—			710
Meals and entertainment	772			649			469
Fines and penalties	134			84			(36		)
Federal credits	(58		)	(182		)	(103		)
Adjustment to deferred tax assets and liabilities	(54		)	(3		)	(3		)
Other	1,160			746			100
Total income tax expense (benefit)	$	105,492		$	66,124		$	46,383

Deferred taxes

The Company accounts for income taxes using the asset and liability method. Deferred taxes are recorded based on differences between the financial statement basis and tax basis of assets and liabilities and available tax loss and credit carryforwards. At December 31, 2013 and 2012, the significant components of the Company's deferred taxes consisted of the following:



	December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Net operating loss	$	188		$	83
Deferred loss	1,428			—
Deferred revenue	6,241			5,829
Nondeductible accruals	9,734			6,744
Other	2,767			1,073
Deferred tax assets	20,358			13,729
Deferred tax liabilities:
Capitalized interest	736			1,125
Deferred gain	—			364
Fuel hedging	—			97
Accrued engine maintenance	45,911			29,497
Property, plant and equipment	6,384			3,271
Deferred tax liabilities	53,031			34,354
Net deferred tax assets (liabilities)	$	(32,673	)	$	(20,625	)
Deferred taxes included within:
Assets:
Other current assets	$	16,243		$	12,591
Liabilities:
Other long-term liabilities	$	48,916		$	33,216