Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of components of income tax expense (benefit)

Components of the provision for income taxes are as follows (in thousands):



	2014			2013			2012
Current provision:
Federal	$	13,236		$	22,727		$	21,103
State and local	2,008			2,462			2,351
Foreign	78			—			(38		)
	15,322			25,189			23,416
Deferred:
Federal	19,672			5,788			8,292
State and local	81			(504		)	1,367
Foreign	(4,914		)	—			—
	14,839			5,284			9,659
	$	30,161		$	30,473		$	33,075

The Company’s income tax expense is different from the amount computed by applying the federal statutory income tax rate to income before taxes as follows (in thousands):



	2014			2013			2012
Federal statutory tax on earnings before income taxes	$	26,782		$	29,928		$	31,929
State income taxes, net of federal income tax benefit	1,388			1,514			2,185
Non-deductible lobbying and contributions	999			723			946
Tax credits and incentives	(1,209		)	(663		)	(494		)
Tax adjustments	(485		)	(174		)	(1,093		)
Accruals and settlements related to tax audits	529			(395		)	(686		)
Valuation allowance	—			(220		)	—
Change in effective state tax rates	(401		)	(383		)	197
Non-deductible transaction costs	947			—			—
Non-deductible acquisition related charges	1,339			—			—
Other permanent differences	272			143			91
	$	30,161		$	30,473		$	33,075

Schedule of deferred tax assets and liabilities

Components of the Company’s deferred tax assets and liabilities are as follows (in thousands):



	2014			2013
Deferred tax assets:
Deferred compensation plans	$	31,520		$	14,271
Deferred income	752			6,328
Allowance for uncollectible receivables	1,323			1,295
Deferred liabilities	3,822			3,574
Net operating losses and credit carryforward	32,573			19,186
Deferred tax assets	69,990			44,654
Valuation allowance	(1,274		)	(1,213		)
Net deferred tax asset	68,716			43,441
Deferred tax liabilities:
Intangible assets in excess of tax basis	151,210			22,749
Property and equipment in excess of tax basis	37,827			40,135
Other	11,485			2,246
Deferred tax liabilities	200,522			65,130
Net deferred tax liability	$	(131,806	)	$	(21,689	)
Income taxes are classified in the balance sheet as follows:
Net current deferred tax asset	$	17,716		$	8,927
Net non-current deferred tax liability	(149,522		)	(30,616		)
	$	(131,806	)	$	(21,689	)

Schedule of valuation allowance for deferred tax assets

The changes in the valuation allowance for deferred tax assets for the years ended December 31, 2014 and 2013 are as follows (in thousands):



	2014			2013
Balance at beginning of the year	$	1,213		$	1,334
Charged to costs and expenses	158			168
Charged to other accounts	(83		)	—
Deductions	(14		)	(289		)
Balance at end of the year	$	1,274		$	1,213

Summary of income tax contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2014			2013			2012
Balance as of January 1	$	582		$	8,565		$	2,109
Additions for tax positions related to the current year	573			190			—
Additions for tax positions of prior years	2,097			207			7,390
Reductions for tax positions of prior years	(326		)	(8,380		)	(934		)
Balance as of December 31	$	2,926		$	582		$	8,565

- 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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