Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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):

	2013			2014			2015
Income taxes currently payable:
Federal	$	37,691		$	42,674		$	64,227
State		3,445			5,306			5,181
		41,136			47,980			69,408
Deferred income taxes (benefits):
Federal		(1,726	)		(3,236	)		(26,573	)
State		514			(1,055	)		(426	)
		(1,212	)		(4,291	)		(26,999	)
Total income tax expense	$	39,924		$	43,689		$	42,409

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):

	2013			2014			2015
Income tax expense at federal statutory rate	$	57,815		$	41,272		$	24,891
State income taxes, net of federal income tax benefit		4,412			2,738			2,158
Tax contingencies reversed due to statute closings		(25,299	)		(17,318	)		(2,223	)
Change in valuation allowances		18			4,999			5,174
Non-deductible HIF fees		—			8,205			9,953
Other-net		2,978			3,793			2,456
Total income tax expense	$	39,924		$	43,689		$	42,409

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):

	2014			2015
Deferred tax assets:
Net operating loss carryforwards	$	15,867		$	20,686
Share-based compensation		14,519			12,320
Other accrued compensation		8,332			7,745
Claims reserves		9,429			8,243
Other non-deductible accrued liabilities		10,009			14,180
Amortization of goodwill and intangible assets		—			17,394
Other deferred tax assets		6,181			4,950
Total deferred tax assets		64,337			85,518
Valuation allowances		(12,363	)		(15,458	)
Deferred tax assets after valuation allowances		51,974			70,060
Deferred tax liabilities:
Depreciation		(42,644	)		(39,843	)
Amortization of goodwill and intangible assets		(9,407	)		—
Other deferred tax liabilities		(3,647	)		(3,381	)
Total deferred tax liabilities		(55,698	)		(43,224	)
Net deferred tax assets (liabilities)	$	(3,724	)	$	26,836

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):

	2013			2014			2015
Balance as of beginning of period	$	56,601		$	30,176		$	13,528
Additions for current year tax positions		2,367			2,734			3,371
Additions for tax positions of prior years		214			118			949
Reductions for tax positions of prior years		(396	)		(35	)		(1,807	)
Reductions due to lapses of applicable statutes of limitations		(28,606	)		(19,465	)		(3,071	)
Reductions due to settlements with taxing authorities		(4	)		—			(373	)
Balance as of end of period	$	30,176		$	13,528		$	12,597