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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes
15. Income Taxes:

The components of the Company’s provision (benefit) for income taxes from continuing operations were as follows:

 

                         
    2011     2010     2009  

Current:

                        

Federal

     4,375       (1,831 )      (37,049 ) 

State and Local

     115       (65 )      (1,468 ) 
   

 

 

    

 

 

    

 

 

  
      4,490       (1,896 )      (38,517 ) 

Deferred

     8,025       3,561       201  
   

 

 

    

 

 

    

 

 

  

Income Tax Provision (Benefit)

     12,515       1,665       (38,316 ) 
   

 

 

    

 

 

    

 

 

  

The components of the Company’s deferred income taxes at December 31 are as follows:

 

                 
    2011     2010  

Deferred tax assets:

                

Inventory (excluding LIFO reserve)

   $ 1,674     $ 1,207  

Net operating loss and tax credit carryforwards

     3,481       5,108  

Allowance for doubtful accounts

     664       485  

Accrued expenses

     6,289       4,021  

Other

     450       80  
   

 

 

    

 

 

  
      12,558       10,901  

Valuation reserve

     (401 )      (412 ) 
   

 

 

    

 

 

  

Total deferred tax assets

     12,157       10,489  
     

Deferred tax liabilities:

                

LIFO reserve

     (6,358 )      —    

Property and equipment

     (26,534 )      (8,478 ) 

Intangibles

     (15,874 )      (1,712 ) 

Other

     (450 )      (412 ) 
   

 

 

    

 

 

  

Total deferred tax liabilites

     (49,216 )      (10,602 ) 
   

 

 

    

 

 

  

Deferred tax assets (liabilities), net

   $ (37,059 )    $ (113 ) 
   

 

 

    

 

 

  

The deferred tax liability increased by $28,921 related to the July 1, 2011 acquisition of CTI.

 

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:

 

                         
    2011     2010     2009  

Balance as of the beginning of the year

   $ 2,005     $ 2,190     $ 4,378  

Decreases related to prior year tax positions

     —         (158 )      (293 ) 

Increases related to current year tax positions

     24       24       130  

Decreases related to settlements with taxing authorities

     —         —         (1,895 ) 

Decreases related to lapsing of statute of limitations

     (1,954 )      (51 )      (130 ) 
   

 

 

    

 

 

    

 

 

  

Balance as of the end of the year

   $ 75     $ 2,005     $ 2,190  
   

 

 

    

 

 

    

 

 

  

It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months. The change in the Company’s unrecognized tax benefits from the December 31, 2010 balance of $1,930 is due primarily to a lapsing of the statute of limitations. The tax years 2008 through 2010 remain open to examination by major taxing jurisdictions to which the Company is subject.

The Company recognized interest related to uncertain tax positions in income tax expense. As of December 31, 2011 and December 31, 2010, the Company had approximately $9 and $258 of gross accrued interest related to uncertain tax positions, respectively.

The following table reconciles the U.S. federal statutory rate to the Company’s effective tax rate:

 

                         
    2011     2010     2009  

U.S. federal statutory rate

     35.0 %      35.0 %      35.0 % 

State and local taxes, net of federal benefit

     4.1 %      1.3 %      3.2 % 

Sec. 199 manufacturing deduction

     (1.0 %)      —         —    

Meals and entertainment

     1.2 %      5.0 %      (0.1 %) 

Change in unrecognized tax benefits

     (5.8 %)      2.1 %      (0.1 %) 

All other, net

     (0.1 %)      0.5 %      0.5 % 
   

 

 

    

 

 

    

 

 

  

Effective income tax rate

     33.4 %      43.9 %      38.5 % 
   

 

 

    

 

 

    

 

 

  

Taxes paid (refunded) in 2011, 2010 and 2009 totaled $9,159, ($36,355) and ($3,544), respectively. Some subsidiaries of the Company’s consolidated group file state tax returns on a separate company basis and have state net operating loss carryforwards expiring over the next seven to 20 years. A valuation allowance is recorded to reduce certain deferred tax assets to the amount that is more likely than not to be realized.