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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes  
Income Taxes

11. Income Taxes

        The income tax provision from continuing operations consisted of the following for the years ended December 31:

(in thousands)
   2011   2010   2009  

Current

                    

Federal

   $ 10,047   $ 6,349   $ 4,682  

State

     2,038     1,151     888  
               

 

     12,085     7,500     5,570  
               

Deferred

                    

Federal

     (1,039 )   1,421     3,419  

State

     (287 )   322     457  
               

 

     (1,326 )   1,743     3,876  
               

Income tax expense

   $ 10,759   $ 9,243   $ 9,446  
               

        The differences between the U.S. federal statutory tax rate and the Company's effective tax rate for continuing operations were as follows for the years ended December 31:

 
   2011   2010   2009  

U.S federal statutory rate

     35.0 %   35.0 %   35.0 %

State income taxes, net of U.S. federal income tax expense

     4.5     4.6     4.5  

Provision to return adjustments, net

     (0.3 )   (1.1 )   (1.0 )

Deferred tax adjustments, net

     (0.1 )   0.2     (1.2 )

Domestic production/manufacturing deduction

     (2.7 )   (2.4 )   (1.2 )

Refund of fine related to OSHA violation

     —     (0.1 )   (0.7 )

Non-deductible meals and entertainment

     0.7     0.6     0.6  

Research and development credit

     (0.1 )   (0.3 )   —  

Other, net

     —     (0.1 )   (0.6 )
               

 

     37.0 %   36.4 %   35.4 %
               

        The net deferred tax assets and (liabilities) arising from temporary differences was as follows at December 31:

(in thousands)
   2011   2010  

Deferred income tax assets:

              

Self insurance reserves

   $ 9,772   $ 8,874  

Contract loss reserves

     254     77  

Stock-based awards

     5,262     5,793  

Other

     3,245     1,620  
           

Total deferred income tax assets

     18,533     16,364  
           

Deferred income tax liabilities:

              

Property and equipment—tax over book depreciation

     (20,449 )   (19,477 )

Intangible assets—tax over book amortization

     (4,185 )   (4,314 )
           

Total deferred income tax liabilities

     (24,634 )   (23,791 )
           

Net deferred income taxes

   $ (6,101 ) $ (7,427 )
           

        The balance sheet classification of deferred income taxes is as follows:

(in thousands)
   2011   2010  

Current deferred income tax assets

   $ 13,253   $ 10,544  

Non-current deferred income tax liabilities

     (19,354 )   (17,971 )
           

 

   $ (6,101 ) $ (7,427 )
           

        The Company is subject to taxation in various jurisdictions. The Company's federal tax returns for 2009 and 2010 are currently under examination by the Internal Revenue Service. The Company remains subject to examination by various state authorities for the years 2007 through 2011.

        The Company has recorded a liability for unrecognized tax benefits related to tax positions taken on its various income tax returns. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate that is reported in future periods. The Company anticipates that total unrecognized tax benefits will be reduced within the next 12 months due to the lapses in the applicable statutes of limitations, as well as pending federal tax settlements for the two years under examination. The adjustment related to these items is estimated at approximately $0.3 million. Interest and penalties related to uncertain income tax positions are included as a component of income tax expense in the accompanying consolidated statements of operations.

        The Company had approximately $0.7 million and $0.6 million of total unrecognized tax benefits, including accrued interest and penalties, as of December 31, 2011 and 2010, respectively, which were included in other liabilities in the accompanying consolidated balance sheets. For the year ended December 31, 2011, the Company recorded an additional $0.1 million in unrecognized tax benefits related to the net activity of current and prior year positions. The amount of interest and penalties charged or credited to income tax expense as a result of the unrecognized tax benefits was $0.1 million or less for each of the years ended December 31, 2011, 2010 and 2009.

        The following is a reconciliation of the beginning and ending liabilities for unrecognized tax benefits at December 31:

(in thousands)
   2011   2010  

Balance at beginning of period

   $ 392   $ 691  

Gross increases in current period tax positions

     194     133  

Gross increases in prior period tax positions

     31     11  

Gross decreases in prior period tax positions

     (34 )   —  

Lapse of applicable statutes of limitations

     (16 )   (82 )

Settlements with taxing authorities

     —     (361 )
           

Balance at end of period

     567     392  

Accrued interest and penalties at end of period

     113     220  
           

Total liability for unrecognized tax benefits

   $ 680   $ 612