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Note 6 - Income Taxes
 9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Text Block]
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 (benefit) in the accompanying condensed consolidated financial statements consists of the following (in thousands):

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
   
2012
   
2011
   
2012
   
2011
 
Current tax expense (benefit) 
  $ (683 )   $ (185 )   $ (539 )   $ (539 )
Deferred tax expense (benefit) 
   
1,530
      2,169       (1,607 )     3,834  
Total tax expense (benefit)
  $ 847     $ 1,984     $ (2,146 )   $ 3,295  

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 nine months ended September 30, 2012 reflects, among other temporary timing differences, the tax impact of $2.4 million related to the $6.7 million 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 nine months ended September 30, 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 at the federal statutory rate
  $ 3,425       35.0 %   $ 5,954       35.0 %
State income tax expense (benefit), net of federal benefit
   
(51
)     
(0.5
)      (402 )     (2.4 )
Taxes on subsidiaries' and joint ventures’ earnings attributable to noncontrolling ownership interests, which are liabilities of such owners
    (5,086 )     (52.0 )     (2,100 )     (12.2 )
Interest income not subject to federal tax
    (386 )     (3.9 )     (249 )     (1.5 )
Other permanent differences
    (48 )     (0.5 )     92       0.5  
Income tax expense (benefit)
  $ (2,146 )     (21.9 )%   $ 3,295       19.4 %

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