XML 22 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes  
Income Taxes

Note 21—Income Taxes

 

The components of the income tax provision from continuing operations are as shown in the following table:

 

 

 

2011

 

2010

 

2009

 

Current provision (benefit)

 

 

 

 

 

 

 

Federal

 

$

24,791

 

$

18,491

 

$

12,967

 

State

 

5,697

 

4,663

 

3,105

 

Foreign

 

621

 

1,081

 

1,230

 

 

 

$

31,109

 

$

24,235

 

$

17,302

 

 

 

 

 

 

 

 

 

Deferred provision (benefit)

 

 

 

 

 

 

 

Federal

 

6,488

 

(1,951

)

516

 

State

 

849

 

(189

)

84

 

Foreign

 

(122

)

(36

)

(46

)

 

 

7,215

 

(2,176

)

554

 

Change in valuation allowance

 

(150

)

—

 

494

 

Total

 

$

38,174

 

$

22,059

 

$

18,350

 

 

A reconciliation of income tax expense from continuing operations to the amount of income tax expense that would result by applying the U.S. federal statutory income tax rate to pre-tax income from continuing operations is as follows:

 

 

 

2011

 

2010

 

2009

 

U.S. federal statutory income tax rate

 

35.00

%

35.00

%

35.00

%

State taxes, net of federal income tax impact

 

4.33

%

4.52

%

4.34

%

Foreign tax credit

 

(0.52

)%

(1.88

)%

(2.59

)%

Canadian income tax

 

0.52

%

1.88

%

2.59

%

Domestic production activities deduction

 

(2.79

)%

(3.30

)%

(1.67

)%

Other items

 

2.92

%

3.40

%

0.47

%

Effective tax rate from continuing operations

 

39.46

%

39.62

%

38.14

%

 

Deferred income taxes are recognized for temporary differences between the financial reporting basis of the assets and liabilities and their respective tax basis and operating losses, capital losses and tax credit carry-forwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies.

 

During 2009, the Company recognized a capital loss related to the sale of its equity interest in ARB Avenal.  A valuation allowance of $344 has been provided against the Company’s deferred tax for its capital loss carryforward as the Company believes that it is more likely than not that this capital loss will not be realized.  The Company’s determination that it will not fully realize this deferred tax asset is based upon the Company’s future unlikelihood of generating sufficient capital gains.  No valuation allowance has been provided to the Company’s remaining deferred tax assets as the Company believes it is more likely than not that these deferred tax assets will be realized.

 

The tax effect of temporary differences that give rise to deferred income taxes for the year ended December 31, 2011 and 2010 are as follows:

 

 

 

2011

 

2010

 

Deferred tax assets:

 

 

 

 

 

Accrued workers compensation

 

$

4,023

 

$

2,515

 

Insurance reserves

 

2,657

 

2,245

 

Other accrued liabilities

 

6,604

 

6,400

 

State income taxes

 

1,605

 

493

 

Capital loss carryforward

 

344

 

494

 

Foreign tax credit

 

644

 

390

 

Valuation allowance

 

(344

)

(494

)

Total deferred tax assets

 

15,533

 

12,043

 

Deferred tax liabilities

 

 

 

 

 

Depreciation and amortization

 

(24,659

)

(14,592

)

Prepaid expenses and other

 

(1,294

)

(418

)

Total deferred tax liabilities

 

(25,953

)

(15,010

)

Total

 

$

(10,420

)

$

(2,967

)

 

The Company recognizes accrued interest and penalties related to uncertain tax positions, if any, as a component of income tax expense.

 

As of December 31, 2011 and 2010, there are no material unrecognized tax benefits and the Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits within the next 12 months.

 

The Internal Revenue Service (“IRS”) is presently conducting an examination of our federal income tax returns for 2008 and 2009.  The tax years 2008 through 2010 remain open to examination by the IRS.  The statute of limitations of state and foreign jurisdictions vary generally between 3 to 5 years.  Accordingly, the tax years 2006 through 2010 generally remain open to examination by the other major taxing jurisdictions in which the Company operates.