Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) for the following years ended December 31 were as follows (in thousands):

	2010			2011			2012
Income taxes currently payable:
Federal	$	34,235		$	51,195		$	18,345
State		6,722			5,534			2,187
		40,957			56,729			20,532
Deferred income taxes:
Federal		44,310			8,644			14,922
State		(1,523	)		(336	)		2,384
		42,787			8,308			17,306
Total provision for income taxes	$	83,744		$	65,037		$	37,838

Schedule of reconciliation of income tax provision to that computed by applying statutory federal income tax rate

Total income tax expense for the years ended December 31 was different from the amount computed using the statutory federal income tax rate of 35 percent for the following reasons (in thousands):

	2010			2011			2012
Income tax expense at federal statutory rate	$	77,841		$	68,458		$	67,107
State income taxes, net of federal income tax benefit		7,491			7,013			6,812
Tax contingencies reversed due to statute closings		(3,002	)		(12,521	)		(37,093	)
Net change in valuation allowances		(2,554	)		(1,163	)		(288	)
Other-net		3,968			3,250			1,300
Total provision for income taxes	$	83,744		$	65,037		$	37,838

Schedule of components of deferred tax assets and liabilities

  The significant components of deferred tax assets and liabilities at December 31 were as follows (in thousands):

	2011			2012
Deferred tax assets:
Accrued compensation	$	3,258		$	3,891
Operating loss carryforwards		10,969			10,116
Stock compensation		13,431			16,225
Community reinvestment reserves		8,065			6,276
Other non-deductible book accruals		6,988			5,678
Claims reserves		5,438			7,244
Self-insured medical reserves		4,167			2,403
Indirect tax benefits		6,947			5,897
Other assets		5,899			3,691
Total deferred tax assets		65,162			61,421
Valuation allowance		(3,424	)		(3,130	)
Deferred tax assets after valuation allowance		61,738			58,291
Deferred tax liabilities:
Property and depreciation		(37,712	)		(44,728	)
Goodwill and intangible assets		(7,358	)		(15,782	)
Other liabilities		(39	)		(169	)
Total deferred tax liabilities		(45,109	)		(60,679	)
Net deferred tax assets (liabilities)	$	16,629		$	(2,388	)

Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits

 A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

	2010			2011			2012
Balance as of beginning of period	$	113,100		$	111,594		$	99,230
Additions for current year tax positions		3,317			3,240			1,904
Additions for tax positions of prior years		422			948			403
Reductions for tax positions of prior years		(1,916	)		(1,492	)		(1,618	)
Reductions due to lapses of applicable statutes of limitations		(3,329	)		(15,011	)		(43,297	)
Reductions due to settlements with taxing authorities		—			(49	)		(21	)
Balance as of end of period	$	111,594		$	99,230		$	56,601