XML 79 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes
14. Income Taxes

The income tax provision for the years ended December 31, 2009, 2010 and 2011 is summarized below (in thousands):

 

     2009     2010     2011  

Current:

       

Federal

    $ 57,690      $ 70,967      $ 53,344   

State

      13,256        14,815        12,081   
  

 

 

    

 

 

    

 

 

  

Total current

      70,946        85,782        65,425   
  

 

 

    

 

 

    

 

 

  

Deferred:

       

Federal

      (1,697 )      (71 )      4,760   

State

      (565 )      28        (707 ) 
  

 

 

    

 

 

    

 

 

  

Total deferred

      (2,262 )      (43 )      4,053   
  

 

 

    

 

 

    

 

 

  

Total provision for income taxes

    $ 68,684      $ 85,739      $ 69,478   
  

 

 

    

 

 

    

 

 

  

 

The tax effects of the principal temporary differences that give rise to the Company's deferred tax assets are as follows as of December 31, 2010 and 2011 (in thousands):

 

     2010     2011  

Tuition receivable

    $ 3,130      $ 4,629   

Employee-related liabilities

      601        420   

Deferred gain on sale of property

      111        111   

Unrealized gains on marketable securities

      186        –   
  

 

 

    

 

 

  

Current net deferred tax asset

      4,028        5,160   
  

 

 

    

 

 

  

Property and equipment

      (5,631 )      (15,335 ) 

Deferred leasing costs

      3,013        4,130   

Stock-based compensation

      10,369        13,656   

Deferred gain on sale of property

      606        495   

Interest rate swap

      –        399   

Other

      17        (19 ) 
  

 

 

    

 

 

  

Long-term net deferred tax asset

      8,374        3,326   
  

 

 

    

 

 

  

Net deferred tax asset

    $ 12,402      $ 8,486   
  

 

 

    

 

 

  

A reconciliation between the Company's statutory tax rate and the effective tax rate for the years ended December 31, 2009, 2010, and 2011 is as follows:

 

     2009     2010     2011  

Statutory federal rate

      35.0 %      35.0 %      35.0 % 

State income taxes, net of federal benefits

      4.8        4.4        4.3   

Non-taxable interest income

      (0.3 )      (0.1 )      –   

Other

      –        0.2        0.3   
  

 

 

    

 

 

    

 

 

  

Effective tax rate

      39.5 %      39.5 %      39.6 % 
  

 

 

    

 

 

    

 

 

  

Cash payments for income taxes were $59.0 million in 2009, $81.6 million in 2010, and $67.0 million in 2011.