Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Allocation of Income Tax Expense

Total income taxes for the years ended December 31, 2014, 2013 and 2012 were allocated as follows:

	2014			2013			2012
	(in thousands)
Income tax expense on continuing operations	$	22,151		$	19,878		$	12,008
Income tax benefit on discontinued operations		-			-			(196	)
Shareholders’ equity, for compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes		(395	)		(101	)		(106	)
Other comprehensive income for changes in cash flow hedge		(993	)		2,315			(574	)
	$	20,763		$	22,092		$	11,132

Components of Federal and State Income Taxes

The provision for the federal and state income taxes attributable to income from continuing operations consists of the following components:

	Years Ended December 31,
	2014			2013			2012
	(in thousands)
Current expense
Federal taxes	$	16,592		$	3,404		$	3,741
State taxes		2,562			2,305			1,868
Total current provision		19,154			5,709			5,609
Deferred expense
Federal taxes		1,636			12,317			5,618
State taxes		1,361			1,852			781
Total deferred provision		2,997			14,169			6,399
Income tax expense on continuing operations	$	22,151		$	19,878		$	12,008
Effective tax rate		39.5	%		40.2	%		42.0	%

Reconciliation of Income Taxes

A reconciliation of income taxes determined by applying the federal and state tax rates to income from continuing operations is as follows for the years ended December 31, 2014, 2013 and 2012:

		Years Ended December 31,
		2014			2013			2012
	(in thousands)
Computed “expected” tax expense (35%)		$	19,612		$	17,312		$	10,014
State income taxes, net of federal tax effect			2,550			2,702			1,722
Other, net			(11	)		(136	)		272
Income tax expense on continuing operations		$	22,151		$	19,878		$	12,008

Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities consist of the following at December 31, 2014 and 2013:

	2014			2013
	(in thousands)
Deferred tax assets:
Lease obligations	$	2,733		$	2,139
Deferred activation charges		108			107
Allowance for doubtful accounts		306			370
Inventory reserves		189			259
State net operating loss carry-forwards, net of federal tax		717			650
Accrued pension costs		1,086			1,018
Accrued compensation costs		1,550			1,140
Asset retirement obligations		2,790			2,601
Intangible assets		7,921			7,757
Goodwill		2,434			2,660
Deferred revenues		2,691			1,873
Total gross deferred tax assets		22,525			20,574
Less valuation allowance		(709	)		(591	)
Net deferred tax assets		21,816			19,983
Deferred tax liabilities:
Plant and equipment	$	87,941			84,772
Franchise rights		7,686			5,942
Section 481a deferred revenues		246			493
Deferred financing costs		106			128
Prepaid insurance		116			241
Gain on investments, net		409			115
Other, net		878			1,876
Total gross deferred tax liabilities		97,382			93,567
Net deferred tax liabilities	$	75,566			73,584