Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of provision for income taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,
	2012		2011			2010
Current tax provision (benefit):
Federal	$	—	$	—		$	(1,600	)
State		441		396			451
		441		396			(1,149	)
Deferred tax provision (benefit):
Federal		31,791		(21,533	)		46,994
State		2,507		(1,698	)		3,706
		34,298		(23,231	)		50,700
Provision (benefit) for income taxes		34,739		(22,835	)		49,551

Schedule of income tax rate reconciliation

The following is a reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived by dividing the provision (benefit) for income taxes by income (loss) before for income taxes (in thousands):

	Year ended December 31,
	2012			2011			2010
Computed "expected" provision (benefit) for income taxes at the statutory rates	$	32,983		$	(14,683	)	$	52,888
Increase (decrease) in income taxes resulting from:
Purchase accounting (gain) adjustment		—			1,999			(5,455	)
State income tax provision (benefit), net of Federal income tax benefit		2,220			(1,810	)		3,485
Valuation allowance changes affecting the provision for income taxes		1,614			—			—
Other, net		(2,078	)		(8,341	)		(1,367	)
Provision (benefit) for income taxes		34,739			(22,835	)		49,551

Schedule of components of the deferred tax assets and liabilities

The significant components of the net deferred tax assets and liabilities are as follows (in thousands):

	As of December 31,
	2012			2011
Deferred tax assets:
Intangible Asset	$	37,031		$	37,404
Accrued benefits		40,469			35,460
Net operating loss carryforward		118,448			128,134
AMT credit carryforward		15,882			15,882
Deferred aircraft credits		48,124			49,867
Accrued reserves and other		31,846			24,538
Total deferred tax assets		291,800			291,285
Valuation allowance		(1,614	)		—
Deferred tax liabilities:
Accelerated depreciation		(823,487	)		(789,641	)
Total deferred tax liabilities		(823,487	)		(789,641	)
Net deferred tax liability		(533,301		$	(498,356	)