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Income Taxes
 6 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes
9. Income Taxes

For the three-month and six-month periods ended June 30, 2012 and 2011, our income tax expense (benefit) and effective tax rates were as follows (dollars in thousands):

 

                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  

Income tax expense (benefit)

   $ 6,926     $ 1,129     $ 9,215     $ (282 ) 

Effective income tax rate

     38.6 %      30.6 %      39.1 %      35.0 % 

We estimate our differences between taxable income or loss and recorded income or loss on an annual basis. Our tax provision for each quarter is based upon these full year projections which are revised each reporting period. These projections incorporate estimates of permanent differences between U.S. GAAP income or loss and taxable income or loss, state income taxes and adjustments to our liability for unrecognized tax benefits to adjust our statutory Federal income tax rate of 35.0% to our effective income tax rate.

For the six-month period ended June 30, 2012, these estimates increased or decreased our statutory Federal income tax rate of 35.0% to our effective income tax rate of 39.1% as follows: state income taxes added 4.9% and permanent differences between our U.S. GAAP income and taxable income added 0.6%, while adjustments to our reserve for uncertain tax positions resulted in a reduction of 1.4%.

For the six-month period ended June 30, 2011, these estimates increased or decreased our statutory Federal income tax rate of 35.0% to our effective income tax rate of 35.0% as follows: state income taxes added 7.5% and permanent differences between our U.S. GAAP loss and taxable loss added 4.6%, while adjustments to our reserve for uncertain tax positions resulted in a reduction of 12.1%.