XML 30 R16.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Income Taxes
 6 Months Ended
Jun. 30, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
9.  
Income Taxes
 
The Company and its subsidiaries file U.S. federal and various state income tax returns. The Company's 2007 through 2009 U.S. federal income tax returns are currently being examined by the I.R.S.; however, management expects there will be no material adjustments, interest or penalties from such examination.  The Company’s policy is to recognize interest related to any underpayment of taxes as interest expense, and penalties as administrative expenses.

The income tax expense in the accompanying condensed consolidated financial statements consist of the following for the three and six months ended June 30, 2011 and 2010 (in thousands):

   
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
   
          2011
  
        2010
  
2011
  
2010
 
Current tax expense (benefit)
 $748  $1,601  $(354) $2,176 
Deferred tax expense
  397   662   1,665   945 
Total tax expense
 $1,145  $2,263  $1,311  $3,121 

Tax expense for the three and six months ended June 30, 2011 reflects the impact of a $0.5 million decrease to the estimated state tax expense for 2010 identified in connection with the preparation of the 2010 state income tax returns.  Current income tax expense (benefit) represents federal and state taxes based on income or a component thereof expected to be included in the tax returns for the years shown.  The current tax expense (benefit) in the three and six months ended June 30, 2011 reflects the benefit from the expensing for tax purposes new equipment additions allowed by a change in the tax law late in 2010.  The deferred income tax expense, based on temporary timing differences, is expected to be payable in the future years.

The income tax provisions for the six months ended June 30, 2011 and 2010 differ from the amount using the statutory federal income tax rate of 35% of income before taxes and earnings attributable to noncontrolling interests for the following reasons (in thousands, except for percentages):

 
2011
   
2010
 
 
Amount
   
%
   
Amount
   
%
 
Tax expense at the federal statutory rate
$
3,180
     
35.0
%
 
$
3,938
     
35.0
%
State income tax expense (benefit), net of federal benefit
 
(444
)
   
(4.9
)
   
213
     
1.9
 
Taxes on subsidiaries' and joint ventures’ earnings attributable to noncontrolling ownership interests, which are liabilities of such owners
 
(1,232
)
   
(13.6
)
   
(669
)
   
(5.9
)
Tax benefit of Domestic Production Activities Deduction
 
--
     
--
     
(183
)
   
(1.6
)
Interest income not subject to federal tax
 
(210
)
   
(2.3
)
   
(113
)
   
(1.0
)
Other permanent differences
 
17
     
0.2
     
(65
)
   
(0.7
)
Income tax expense
$
1,311
     
14.4
%
 
$
3,121
     
27.7
%
 
Management has determined that the Company does not have any material uncertain tax positions.