Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes included the following components:

	2011	2010	2009
	(in thousands)
Current:
Federal	$       3,378	$       10,421	$      (65,309)
State	820	1,518	340
	4,198	11,939	(64,969)
Deferred:
Federal	345,922	319,279	48,308
State	60,941	59,982	298
Foreign	2,160	459	0
	409,023	379,720	48,606
Provision (benefit) for income taxes	$     413,221	$     391,659	$      (16,363)

Reconciliation of Provision for Income Taxes

	2011	2010	2009
	(in thousands)
Expected provision (benefit) at federal statutory rate	$     367,854	$     348,632	$      (18,205)
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect	40,145	39,975	415
Nondeductible expenses	1,244	660	1,497
Other	3,978	2,392	(70)
Provision (benefit) for income taxes	$     413,221	$     391,659	$      (16,363)

Net Deferred Tax Liability

The components of the Company's net deferred tax liability as of December 31, 2011 and 2010 were as follows:

	2011	2010
	(in thousands)
Deferred tax liabilities:
Differences between book and tax basis of property	$    1,916,619	$    1,411,240
Cash flow hedges	276,063	61,394
Other	15,755	14,122
	2,208,437	1,486,756
Deferred tax assets:
Accrued compensation	30,316	16,279
Alternative minimum tax credit carryforward	73,516	70,138
Stored natural gas	9,053	7,145
Accrued pension costs	3,982	6,227
Asset retirement obligations	13,188	10,848
Net operating loss carryforward	287,830	192,086
Other	9,591	9,652
	427,476	312,375
Net deferred tax liability	$    1,780,961	$    1,174,381