Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of components of provision for income taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,

	2013		2012		2011
Current tax provision (benefit):
Federal	$	1,767	$	—	$	—
State		343		441		396


		2,110		441		396


Deferred tax provision (benefit):
Federal		34,728		31,791		(21,533	)
State		2,738		2,507		(1,698	)


		37,466		34,298		(23,231	)


Provision (benefit) for income taxes		39,576		34,739		(22,835	)

Schedule of income tax rate reconciliation

The following is a reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived by dividing the provision (benefit) for income taxes by income (loss) before for income taxes adjusted for permanent differences (in thousands):

	Year ended December 31,

	2013			2012			2011
Computed "expected" provision (benefit) for income taxes at the statutory rates adjusted for permanent differences	$	37,743		$	32,983		$	(14,683	)
Increase (decrease) in income taxes resulting from:
Purchase accounting (gain) adjustment		—			—			1,999
State income tax provision (benefit), net of Federal income tax benefit		2,867			2,220			(1,810	)
Valuation allowance changes affecting the provision for income taxes		1,430			1,614			—
Other, net		(2,464	)		(2,078	)		(8,341	)


Provision (benefit) for income taxes		39,576			34,739			(22,835	)

Schedule of components of the net deferred tax assets and liabilities

The significant components of the net deferred tax assets and liabilities are as follows (in thousands):

	As of December 31,

	2013			2012
Deferred tax assets:
Intangible Asset	$	36,164		$	37,031
Accrued benefits		40,850			40,469
Net operating loss carryforward		85,885			118,448
AMT credit carryforward		17,649			15,882
Deferred aircraft credits		44,350			48,124
Accrued reserves and other		30,987			31,846


Total deferred tax assets		255,885			291,800


Valuation allowance		(3,044	)		(1,614	)


Deferred tax liabilities:
Accelerated depreciation		(824,149	)		(823,487	)


Total deferred tax liabilities		(824,149	)		(823,487	)


Net deferred tax liability		(571,308	)		(533,301	)