Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Total income taxes expense (benefit) for the years ended December 31, 2014, 2013 and 2012 was included within the following sections of the consolidated financial statements as follows (in thousands):



	2014			2013			2012
Income from continuing operations	$	48,103		$	48,654		$	40,893
Discontinued operations	(643		)	9			3,045
Shareholders’ equity	(3,177		)	(7,381		)	(1,581		)
Total	$	44,283		$	41,282		$	42,357

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense from continuing operations for the years ended December 31, 2014, 2013 and 2012 was comprised of the following (in thousands):



	2014		2013		2012
Current:
Federal	$	8,640	$	7,895	$	14,602
State	4,396		3,598		4,806
Deferred:
Federal	27,505		31,509		18,018
State	7,562		5,652		3,467
Income tax expense	$	48,103	$	48,654	$	40,893

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense from continuing operations for the years ended December 31, 2014, 2013 and 2012 differed from the amount computed by applying the U.S. federal income tax rate of 35% to earnings before income taxes as a result of the following (in thousands):



	2014			2013			2012
Statutory federal income tax	$	102,967		$	106,101		$	89,806
Less federal income tax assumed directly by noncontrolling interests	(66,783		)	(64,219		)	(56,378		)
State income taxes, net of federal income tax benefit	6,616			5,539			7,020
Increase in valuation allowances	4,662			924			419
Interest related to unrecognized tax benefits	(161		)	(155		)	(109		)
Other	802			464			135
Income tax expense	$	48,103		$	48,654		$	40,893

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of the liability associated with unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):



	2014			2013			2012
Balance at beginning of year	$	6,330		$	9,235		$	7,252
Additions for tax positions of current year	204			46			119
Increases for tax positions taken during a prior period	1,069			—			1,985
Lapse of statute of limitations	(267		)	(2,951		)	(121		)
Balance at end of year	$	7,336		$	6,330		$	9,235

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 were as follows (in thousands):



	2014			2013
Deferred tax assets:
Allowance for uncollectible accounts	$	1,096		$	897
Accrued assets and other	27,537			5,292
Valuation allowances	(3,736		)	(2,021		)
Total current deferred tax assets	24,897			4,168
Share-based compensation	7,719			7,635
Interest on unrecognized tax benefits	245			230
Accrued liabilities and other	3,931			3,629
Medical malpractice	16,240			—
Operating and capital loss carryforwards	22,709			9,185
Valuation allowances	(13,721		)	(7,665		)
Total non-current deferred tax assets	37,123			13,014
Total deferred tax assets	62,020			17,182
Deferred tax liabilities:
Prepaid expenses	2,435			1,071
Property and equipment, principally due to differences in depreciation	15,235			4,137
Goodwill, intangible assets and other, principally due to differences in amortization	655,368			184,897
Total deferred tax liabilities	673,038			190,105
Net deferred tax liabilities	$	611,018		$	172,923

Schedule Of Deferred Tax Assets And Liabilities

The net deferred tax liabilities at December 31, 2014 and 2013 were recorded as follows (in thousands):



	2014		2013
Current deferred income tax assets	$	22,462	$	3,097
Non-current deferred income tax liabilities	633,480		176,020
Net deferred tax liabilities	$	611,018	$	172,923

- 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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