Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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):

	2012		2013			2014
Income taxes currently payable:
Federal	$	18,345	$	37,691		$	42,674
State		2,187		3,445			5,306
		20,532		41,136			47,980
Deferred income taxes (benefits):
Federal		14,922		(1,726	)		(3,236	)
State		2,384		514			(1,055	)
		17,306		(1,212	)		(4,291	)
Total income tax expense	$	37,838	$	39,924		$	43,689

Schedule of differences between total income tax expense and amount computed using the 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):

	2012			2013			2014
Income tax expense at federal statutory rate	$	67,107		$	57,815		$	41,272
State income taxes, net of federal income tax benefit		6,812			4,412			2,738
Tax contingencies reversed due to statute closings		(37,093	)		(25,299	)		(17,318	)
Change in valuation allowances		(288	)		18			4,999
Non-deductible ACA fees		—			—			8,205
Other-net		1,300			2,978			3,793
Total income tax expense	$	37,838		$	39,924		$	43,689

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):

	2013			2014
Deferred tax assets:
Net operating loss carryforwards	$	8,604		$	15,867
Share-based compensation		15,926			14,519
Other accrued compensation		7,619			8,332
Claims reserves		8,005			9,429
Deferred revenue		6,708			4,090
Other non-deductible accrued liabilities		13,568			5,919
Indirect tax benefits		4,804			3,825
Other deferred tax assets		987			2,356
Total deferred tax assets		66,221			64,337
Valuation allowances		(3,102	)		(12,363	)
Deferred tax assets after valuation allowances		63,119			51,974
Deferred tax liabilities:
Depreciation		(43,417	)		(42,644	)
Amortization of goodwill and intangible assets		(20,615	)		(9,407	)
Prepaid expenses		(3,603	)		(3,631	)
Other deferred tax liabilities		—			(16	)
Total deferred tax liabilities		(67,635	)		(55,698	)
Net deferred tax liabilities	$	(4,516	)	$	(3,724	)

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):

	2012			2013			2014
Balance as of beginning of period	$	99,230		$	56,601		$	30,176
Additions for current year tax positions		1,904			2,367			2,734
Additions for tax positions of prior years		403			214			118
Reductions for tax positions of prior years		(1,618	)		(396	)		(35	)
Reductions due to lapses of applicable statutes of limitation		(43,297	)		(28,606	)		(19,465	)
Reductions due to settlements with taxing authorities		(21	)		(4	)		—
Balance as of end of period	$	56,601		$	30,176		$	13,528