Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2012
|
Income Taxes |
|
Schedule of components of income tax expense (benefit) |
Components of income tax expense (benefit) consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2012 |
|
2011 |
|
2010 |
|
Current: |
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
83,905 |
|
$ |
54,132 |
|
$ |
25,046 |
|
State |
|
|
13,949 |
|
|
8,948 |
|
|
1,792 |
|
Foreign |
|
|
659 |
|
|
544 |
|
|
846 |
|
|
|
|
|
|
|
|
|
Total current |
|
|
98,513 |
|
|
63,624 |
|
|
27,684 |
|
Deferred |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
37,259 |
|
|
11,228 |
|
|
(1,614 |
) |
State |
|
|
(415 |
) |
|
(2,428 |
) |
|
1,881 |
|
Foreign |
|
|
182 |
|
|
641 |
|
|
(1,289 |
) |
|
|
|
|
|
|
|
|
Total deferred |
|
|
37,026 |
|
|
9,441 |
|
|
(1,022 |
) |
|
|
|
|
|
|
|
|
Other non-current |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
573 |
|
|
7,605 |
|
|
15,672 |
|
State |
|
|
114 |
|
|
1,621 |
|
|
1,068 |
|
Foreign |
|
|
3 |
|
|
(417 |
) |
|
543 |
|
|
|
|
|
|
|
|
|
Total other |
|
|
690 |
|
|
8,809 |
|
|
17,283 |
|
|
|
|
|
|
|
|
|
Total income tax expense |
|
$ |
136,229 |
|
$ |
81,874 |
|
$ |
43,945 |
|
|
|
|
|
|
|
|
|
|
Schedule of reconciliation of income taxes computed at the statutory federal tax rate to income tax expense (benefit) |
Presented below is a reconciliation of income taxes computed at the statutory federal tax rate to income tax expense (benefit) as reported (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2012 |
|
2011 |
|
2010 |
|
Federal tax provision computed at 35% |
|
$ |
154,235 |
|
$ |
105,018 |
|
$ |
54,302 |
|
State tax provision, net of federal tax provision |
|
|
9,149 |
|
|
5,549 |
|
|
1,437 |
|
General business credits |
|
|
(10,980 |
) |
|
(15,776 |
) |
|
(14,759 |
) |
Incentive stock option expense |
|
|
(479 |
) |
|
(290 |
) |
|
(1,201 |
) |
Section 199 deduction |
|
|
(15,629 |
) |
|
(8,091 |
) |
|
(3,627 |
) |
Nondeductible compensation expense |
|
|
2,609 |
|
|
(2,607 |
) |
|
7,342 |
|
Nondeductible expenses |
|
|
(2,676 |
) |
|
(1,929 |
) |
|
451 |
|
|
|
|
|
|
|
|
|
Total income tax expense |
|
$ |
136,229 |
|
$ |
81,874 |
|
$ |
43,945 |
|
|
|
|
|
|
|
|
|
|
Schedule of components of net deferred tax asset |
Components of the net deferred tax asset are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2012 |
|
2011 |
|
Deferred tax assets: |
|
|
|
|
|
|
|
General business credits |
|
$ |
25,834 |
|
$ |
72,188 |
|
Impairment losses on investments |
|
|
2,884 |
|
|
2,892 |
|
Realized losses on marketable investments |
|
|
2,095 |
|
|
2,101 |
|
License fees capitalized for tax purposes |
|
|
74,964 |
|
|
69,720 |
|
Nonqualified stock options |
|
|
30,872 |
|
|
31,463 |
|
SERP |
|
|
14,594 |
|
|
12,164 |
|
STAP awards |
|
|
20,238 |
|
|
21,502 |
|
Other |
|
|
31,534 |
|
|
22,015 |
|
|
|
|
|
|
|
Total deferred tax assets |
|
|
203,015 |
|
|
234,045 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
Plant and equipment principally due to differences in depreciation |
|
|
(31,428 |
) |
|
(28,416 |
) |
Other |
|
|
(1,221 |
) |
|
(1,227 |
) |
|
|
|
|
|
|
Net deferred tax asset before valuation allowance |
|
|
170,366 |
|
|
204,402 |
|
Valuation allowance |
|
|
(5,665 |
) |
|
(5,458 |
) |
|
|
|
|
|
|
Net deferred tax assets |
|
$ |
164,701 |
|
$ |
198,944 |
|
|
|
|
|
|
|
|
Schedule of reconciliation of beginning and ending balances of unrecognized tax benefit |
A reconciliation of the beginning and ending balances of unrecognized tax benefits for the years indicated is as follows (in thousands):
|
|
|
|
|
Unrecognized tax benefits at January 1, 2012 |
|
$ |
1,733 |
|
Gross increases—tax positions in prior period |
|
|
146 |
|
Gross decreases—tax positions in prior period |
|
|
(368 |
) |
Gross increases—tax positions in the current period |
|
|
— |
|
Gross decreases—tax positions in current period |
|
|
— |
|
Settlements |
|
|
— |
|
Lapse of statute of limitations |
|
|
— |
|
|
|
|
|
Unrecognized tax benefits at December 31, 2012 |
|
$ |
1,511 |
|
|
|
|
|
Unrecognized tax benefits at January 1, 2011 |
|
$ |
7,406 |
|
Gross increases—tax positions in prior period |
|
|
500 |
|
Gross decreases—tax positions in prior period |
|
|
(7,406 |
) |
Gross increases—tax positions in the current period |
|
|
1,233 |
|
Gross decreases—tax positions in the current period |
|
|
— |
|
Settlements |
|
|
— |
|
Lapse of statute of limitations |
|
|
— |
|
|
|
|
|
Unrecognized tax benefits at December 31, 2011 |
|
$ |
1,733 |
|
|
|
|
|
Unrecognized tax benefits at January 1, 2010 |
|
$ |
6,736 |
|
Gross increases—tax positions in prior period |
|
|
670 |
|
Gross decreases—tax positions in prior period |
|
|
— |
|
Gross increases—tax positions in the current period |
|
|
— |
|
Gross decreases—tax positions in the current period |
|
|
— |
|
Settlements |
|
|
— |
|
Lapse of statute of limitations |
|
|
— |
|
|
|
|
|
Unrecognized tax benefits at December 31, 2010 |
|
$ |
7,406 |
|
|
|
|
|
|