Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income (Loss) before Income Taxes

The components of income (loss) before income taxes consist of the following:



Year ended December 31,	2013			2012			2011
Income (loss) before income taxes:
U.S.	$	192,239		$	192,978		$	189,833
Foreign	(7,254		)	(9,622		)	—
Income before income taxes	$	184,985		$	183,356		$	189,833

Income Tax Provision

The income tax provision consists of the following:



Year ended December 31,	2013			2012			2011
Current tax provision (benefit):
Federal	$	58,487		$	62,859		$	50,780
State	10,455			10,537			9,335
Foreign	1,448			(103		)	—
Total current tax provision	70,390			73,293			60,115
Deferred tax provision (benefit):
Federal	5,455			2,529			12,983
State	394			438			1,537
Foreign	(2,136		)	(1,907		)	—
Total deferred tax provision	3,713			1,060			14,520
Total income tax provision	$	74,103		$	74,353		$	74,635

Reconciliation of Federal Statutory Rate to Effective Income Tax Rate

A reconciliation of the federal statutory rate to our effective income tax rate is shown below:



Year ended December 31,	2013		2012		2011
Federal statutory rate	35.0	%	35.0	%	35.0	%
Increases in the rate resulting from:
State income taxes, net of federal income tax impact	3.9	%	3.9	%	3.7	%
Foreign income taxes	0.4	%	0.7	%	—	%
Other	0.8	%	1.0	%	0.6	%
Effective income tax rate	40.1	%	40.6	%	39.3	%

Tax Effects On Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:



December 31,	2013			2012
Deferred tax assets:
Employee benefit plans	$	28,995		$	30,138
Accrued liabilities not currently deductible	13,591			17,610
Finance charges	6,316			7,042
Intangible assets	2,171			2,749
Property and equipment	1,507			1,593
Allowance for losses on accounts and notes receivable	3,922			3,885
Net operating loss carryforwards	8,643			5,540
Other	2,083			1,901
Total deferred tax assets	67,228			70,458
Less: valuation allowances	(5,250		)	(3,683		)
Net deferred tax assets	61,978			66,775
Deferred tax liabilities:
Merchandise inventories	69,994			70,916
Goodwill	33,455			31,020
Property and equipment	18,026			18,110
Computer software	11,400			10,576
Insurance	1,070			1,030
Intangible assets	4,523			5,266
Employee benefit plans	103			188
Other	585			1,309
Total deferred tax liabilities	139,156			138,415
Net deferred tax liability	$	(77,178	)	$	(71,640	)

Reconciliation of Changes In Unrecognized Tax Benefits

At December 31, 2013 and 2012, the liability for unrecognized tax benefits was $4.6 million and $12.3 million. A reconciliation of the changes in unrecognized tax benefits from the beginning to the end of the reporting period is as follows:



	2013			2012
Unrecognized tax benefits at January 1,	$	12,303		$	13,152
Increases for positions taken during current period	758			574
Increases for positions taken during prior periods	333			191
Decreases for positions taken during prior periods	(4,939		)	(432		)
Lapse of statute of limitations	(3,580		)	(1,182		)
Settlements with taxing authorities	(227		)	—
Unrecognized tax benefits at December 31,	$	4,648		$	12,303

- 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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