Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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):

	2014		2015		2016
Income taxes currently payable:
Federal	$	42,674	$	64,227	$	59,343
State		5,306		5,181		5,675
		47,980		69,408		65,018
Deferred income taxes (benefits):
Federal		(3,236)		(26,573)		3,830
State		(1,055)		(426)		880
		(4,291)		(26,999)		4,710
Total income tax expense	$	43,689	$	42,409	$	69,728

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):

	2014		2015		2016
Income tax expense at federal statutory rate	$	41,272	$	24,891	$	50,931
State income taxes, net of federal income tax benefit		2,738		2,158		5,799
Tax contingencies reversed due to statute closings		(17,318)		(2,223)		(1,632)
Change in valuation allowances		4,999		5,174		2,130
Non-deductible HIF fees		8,205		9,953		10,204
Other-net		3,793		2,456		2,296
Total income tax expense	$	43,689	$	42,409	$	69,728

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):

	2015		2016
Deferred tax assets:
Net operating loss carryforwards	$	20,686	$	19,727
Share-based compensation		12,320		14,704
Other accrued compensation		7,745		9,313
Claims reserves		8,243		6,251
Deferred revenue		3,644		4,986
Other non-deductible accrued liabilities		10,536		3,460
Amortization of goodwill and intangible assets		17,394		444
Indirect tax benefits		3,909		4,396
Other deferred tax assets		1,041		3,858
Total deferred tax assets		85,518		67,139
Valuation allowances		(15,458)		(17,117)
Deferred tax assets after valuation allowances		70,060		50,022
Deferred tax liabilities:
Depreciation		(39,843)		(41,311)
Other deferred tax liabilities		(3,381)		(5,586)
Total deferred tax liabilities		(43,224)		(46,897)
Net deferred tax assets (liabilities)	$	26,836	$	3,125

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):

	2014		2015		2016
Balance as of beginning of period	$	30,176	$	13,528	$	12,597
Additions for current year tax positions		2,734		3,371		3,274
Additions for tax positions of prior years		118		949		141
Reductions for tax positions of prior years		(35)		(1,807)		(173)
Reductions due to lapses of applicable statutes of limitations		(19,465)		(3,071)		(2,235)
Reductions due to settlements with taxing authorities		—		(373)		—
Balance as of end of period	$	13,528	$	12,597	$	13,604