Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013			2012			2011
Current:
Federal	$	120,030		$	83,905		$	54,132
State		20,099			13,949			8,948
Foreign		2,164			659			544
Total current		142,293			98,513			63,624
Deferred
Federal		(37,713	)		37,259			11,228
State		(9,059	)		(415	)		(2,428	)
Foreign		(1,055	)		182			641
Total deferred		(47,827	)		37,026			9,441
Other non-current
Federal		7,797			573			7,605
State		1,907			114			1,621
Foreign		173			3			(417	)
Total other		9,877			690			8,809
Total income tax expense	$	104,343		$	136,229		$	81,874

Schedule of reconciliation of income taxes computed at the statutory federal tax rate to income tax expense

Presented below is a reconciliation of income taxes computed at the statutory federal tax rate to income tax expense as reported (in thousands):

	Year Ended December 31,
	2013			2012			2011
Federal tax provision computed at 35%	$	97,616		$	154,235		$	105,018
State tax provision, net of federal tax provision		8,320			9,149			5,549
General business credits		(13,346	)		(10,980	)		(15,776	)
Incentive stock option expense		(304	)		(479	)		(290	)
Section 199 deduction		(10,861	)		(15,629	)		(8,091	)
Nondeductible compensation expense		22,813			2,609			(2,607	)
Nondeductible expenses		105			(2,676	)		(1,929	)
Total income tax expense	$	104,343		$	136,229		$	81,874

Schedule of components of net deferred tax asset

Components of the net deferred tax asset are as follows (in thousands):

	As of December 31,
	2013			2012
Deferred tax assets:
General business credits	$	277		$	25,834
Impairment losses on investments		318			2,884
Realized losses on marketable investments		—			2,095
License fees capitalized for tax purposes		75,181			74,964
Nonqualified stock options		40,808			30,872
SERP		14,059			14,594
STAP awards		84,274			20,238
Other		28,118			31,534
Total deferred tax assets		243,035			203,015
Deferred tax liabilities:
Plant and equipment principally due to differences in depreciation		(32,725	)		(31,428	)
Other		(1,351	)		(1,221	)
Net deferred tax asset before valuation allowance		208,959			170,366
Valuation allowance		(2,507	)		(5,665	)
Net deferred tax assets	$	206,452		$	164,701

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, 2013	$	1,511
Gross increases—tax positions in prior period		1,325
Gross decreases—tax positions in prior period		—
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, 2013	$	2,836
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 the 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