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Income Taxes
 3 Months Ended
Mar. 31, 2012
Income Tax [Abstract]  
Income Taxes
 
6.
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 any penalties as administrative expenses.
 
The income tax expense in the accompanying condensed consolidated financial statements consists of the following (in thousands):

Three Months Ended
March 31,
2012
2011
Current tax benefit
$(1,025) $(1,102)
Deferred tax expense (benefit)
(2,951) 1,268
Total tax expense (benefit)
$(3,976) $166

 
Current income tax expense (benefit) represents federal and state taxes based on income (loss) or a component thereof expected to be included in the tax returns for the years shown. The deferred tax benefit in the three months ended March 31, 2012 reflects, among other temporary timing differences, the tax impact of $2,351,000 related to the $6,717,000 increase in the net income attributable to RLW's noncontrolling interests for the amendment discussed in Note 8. The deferred income tax expense (benefit), based on temporary timing differences, is expected to be payable in future years.
 
The income tax expense (benefit) for the three months ended March 31, 2012 and 2011 differ from the amounts 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):
 
2012
2011
Amount
%
Amount
%
Tax expense (benefit) at the U.S. federal statutory rate
$(1,323) 35.0%$57735.0 %
State franchise and income tax based on income, net of refunds and federal benefits
(15) 0.420112.2
Taxes on subsidiaries' and joint ventures' earnings allocated to noncontrolling ownership interests
(2,694) 71.2(503) (30.5 )
Non-taxable interest income
(122) 3.2(128) (7.8 )
Other permanent differences
178(4.6)191.2
Income tax expense (benefit)
$(3,976) 105.2%$16610.1 %

As a result of the Company's analysis, management has determined that the Company does not have any material uncertain tax positions.