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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes |
11. | Income Taxes
The provision for income taxes from continuing operations are as follows (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,378 |  |  | $ | 857 |  |  | $ | 1,211 |
State |  |  | 685 |  |  |  | (474 | ) |  |  | 606 |
|  |  | 6,063 |  |  |  | 383 |  |  |  | 1,817 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 341 |  |  |  | 283 |  |  |  | 601 |
State |  |  | (76 | ) |  |  | 171 |  |  |  | 156 |
|  |  | 265 |  |  |  | 454 |  |  |  | 757 |
Total provision |  | $ | 6,328 |  |  | $ | 837 |  |  | $ | 2,574 |
Deferred income tax assets and liabilities are comprised of the following components (in thousands):
|  | December 31, |
|  | 2012 |  |  | 2011 |
Gross deferred income tax assets: |  |  |  |  |  |  |  |
Workers' compensation claims liabilities |  | $ | 4,833 |  |  | $ | 4,266 |
Safety incentives payable |  |  | 3,422 |  |  |  | 2,064 |
Allowance for doubtful accounts |  |  | 148 |  |  |  | 175 |
Deferred compensation |  |  | 44 |  |  |  | 180 |
Tax effect of unrealized losses, net |  |  | 936 |  |  |  | 883 |
Alternative minimum tax credit carryforward |  |  | 0 |  |  |  | 740 |
State credit carryforward |  |  | 805 |  |  |  | 490 |
State loss carryforward |  |  | 0 |  |  |  | 15 |
Other |  |  | 284 |  |  |  | 305 |
|  |  | 10,472 |  |  |  | 9,118 |
Less valuation allowance |  |  | 1,773 |  |  |  | 1,333 |
|  |  | 8,699 |  |  |  | 7,785 |
Gross deferred income tax liabilities: |  |  |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | (2,017 | ) |  |  | (1,851 | )
Tax amortization of goodwill |  |  | (9,141 | ) |  |  | (8,128 | )
|  |  | (11,158 | ) |  |  | (9,979 | )
Net deferred income tax liabilities |  | $ | (2,459 | ) |  | $ | (2,194 | )
The effective tax rate for continuing operations differed from the U.S. statutory federal tax rate due to the following:
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Statutory federal tax rate |  |  | 35.0 | % |  |  | 34.0 | % |  |  | 34.0 | %
State taxes, net of federal benefit |  |  | .4 |  |  |  | (4.2 | ) |  |  | 5.3 |
Valuation allowance on capital loss carryforward and state tax credit carryforward |  |  | 2.3 |  |  |  | 3.1 |  |  |  | (4.4 | )
Adjustment for final positions on filed returns |  |  | (.3 | ) |  |  | (.3 | ) |  |  | 1.5 |
Officer life insurance proceeds |  |  | 0 |  |  |  | (22.4 | ) |  |  | 0 |
Nondeductible expenses and other, net |  |  | 4.4 |  |  |  | 3.9 |  |  |  | 5.8 |
Federal tax-exempt interest income |  |  | (.4 | ) |  |  | (.9 | ) |  |  | (.7 | )
Federal and state tax credits |  |  | (8.9 | ) |  |  | (7.7 | ) |  |  | (15.6 | )
|  |  | 32.5 | % |  |  | 5.5 | % |  |  | 25.9 | %
The Company has established a valuation allowance for certain deferred tax assets due to uncertainties regarding the Company’s ability to generate future taxable investment gains in order to utilize certain investment impairment losses and investment loss carryforwards for tax purposes. The realization of a significant portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. At December 31, 2012, we maintained a valuation allowance for approximately $1.8 million of federal and state tax benefits that are not expected to be utilized. The Company is subject to income taxes in U.S. federal and multiple state and local tax jurisdictions. In the major jurisdictions where the Company operates, it is generally no longer subject to income tax examinations by tax authorities for years before 2007. As of December 31, 2012 and 2011, we had no unrecognized tax benefits. We are currently under exam by the Internal Revenue Service and the State of California. The Company is subject to income taxes in multiple state and local tax jurisdictions. A portion of the consolidated income the Company generates is not subject to state income tax. Depending on the percentage of this income to total consolidated income, the Company’s state effective rate can fluctuate from expectations. As a result of the mix of income subject to state income tax, total state tax expense decreased by approximately $498,000 and $502,000 in 2012 and 2011, respectively. In 2010, state tax expense increased by approximately $50,000. At December 31, 2012, the Company had capital loss carryforwards of approximately $2.5 million. Unless utilized in earlier tax years, the carryforwards expire in 2015. At December 31, 2012, the Company also had state tax credit carryforwards of $1.2 million, which have no expiration date.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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