Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of components of income tax expense (benefit)

Components of the provision for income taxes are as follows (in thousands):



	2012			2011			2010
Current provision:
Federal	$	21,180		$	16,918		$	(1,620	)
State and local	2,351			3,423			1,211
Foreign	(38		)	(149		)	116
	23,493			20,192			(293		)
Deferred:
Federal	8,292			12,798			9,464
State and local	1,367			1,299			(830		)
	9,659			14,097			8,634
	$	33,152		$	34,289		$	8,341

The Company’s income tax expense is different from the amount computed by applying the federal statutory income tax rate to income before taxes as follows (in thousands):



	2012			2011			2010
Federal statutory tax on earnings before income taxes	$	32,000		$	33,280		$	9,765
State income taxes, net of federal income tax benefit	2,190			3,283			299
Non-deductible lobbying and contributions	946			517			439
Tax credits and incentives	(494		)	(775		)	(36		)
Non-deductible transaction costs	—			—			531
Tax adjustments	(1,093		)	(434		)	(1,960		)
Accruals and settlements related to tax audits	(686		)	(426		)	(853		)
Valuation allowance	—			105			—
Change in effective state tax rates	197			(714		)	32
Other permanent differences	92			(547		)	124
	$	33,152		$	34,289		$	8,341

Schedule of deferred tax assets and liabilities

Components of the Company’s deferred tax assets and liabilities are as follows (in thousands):



	2012			2011
Deferred tax assets:
Deferred compensation plans	$	12,022		$	11,054
Deferred income	8,396			7,656
Allowance for uncollectible receivables	281			412
Deferred liabilities	4,239			5,294
Net operating losses and credit carryforward	20,749			25,828
Other	—			189
Deferred tax assets	45,687			50,433
Valuation allowance	(1,334		)	(1,487		)
Net deferred tax asset	44,353			48,946
Deferred tax liabilities:
Intangible assets in excess of tax basis	18,725			17,762
Property and equipment in excess of tax basis	40,175			38,009
Other	1,874			—
Deferred tax liabilities	60,774			55,771
Net deferred tax liability	$	(16,421	)	$	(6,825	)
Income taxes are classified in the balance sheet as follows:
Net current deferred tax asset	$	8,227		$	8,727
Net non-current deferred tax liability	(24,648		)	(15,552		)
	$	(16,421	)	$	(6,825	)

Schedule of valuation allowance for deferred tax assets

The changes in the valuation allowance for deferred tax assets for the years ended December 31, 2012 and 2011 are as follows (in thousands):



	2012			2011
Balance at beginning of the year	$	1,487		$	1,381
Charged to costs and expenses	—			106
Charged to comprehensive income	—			—
Charged to other accounts	33			—
Deductions	(186		)	—
Balance at end of the year	$	1,334		$	1,487

Summary of income tax contingencies

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



	2012			2011			2010
Balance as of January 1	$	2,109		$	2,926		$	2,967
Additions for tax positions related to the current year	—			—			585
Additions for tax positions of prior years	7,390			—			—
Reductions for tax positions of prior years	(934		)	(817		)	(626		)
Balance as of December 31	$	8,565		$	2,109		$	2,926

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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