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Note 11—INCOME TAXES
For the three and nine months ended September 30, 2011, our total tax expense was $16.5 million and $55.5 million, respectively, and the effective tax rate was 39.3 percent and 39.6 percent, respectively. For the three and nine months ended September 30, 2010, income tax expense was $8.2 million and $18.3 million and the effective tax rate was 41.3 percent and 40.4 percent, respectively. Intrepid's effective income tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which Intrepid's income is subject to tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities, and the benefit associated with the estimated effect of the domestic production activities deduction. Income tax expense for the three and nine months ended September 30, 2011, and 2010, differ from the amounts that would be provided by applying the statutory U.S. federal income tax rate to income before income taxes primarily as a result of the estimated effects of the domestic production activities deduction and state income taxes. Intrepid's income tax provision is comprised of the elements below (in thousands):
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Three months ended |
|
Nine months ended |
|
|
|
September 30, 2011 |
|
September 30, 2010 |
|
September 30, 2011 |
|
September 30, 2010 |
|
|
Current portion of income tax expense (benefit) |
|
$ |
3,951 |
|
$ |
(4,018 |
) |
$ |
12,866 |
|
$ |
(1,031 |
) |
|
Deferred portion of income tax expense |
|
|
12,596 |
|
|
12,205 |
|
|
42,600 |
|
|
19,369 |
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| |
|
|
|
|
|
|
|
|
|
|
Total income tax expense |
|
$ |
16,547 |
|
$ |
8,187 |
|
$ |
55,466 |
|
$ |
18,338 |
|
| |
|
|
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|
|
|
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At September 30, 2011, there were no material uncertain tax positions that would impact Intrepid's effective tax rate. Therefore, no liabilities have been recognized, and no provisions have been made for interest or penalties related to uncertain tax positions. |