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FEDERAL AND STATE INCOME TAXES
 12 Months Ended
Dec. 31, 2012
FEDERAL AND STATE INCOME TAXES [Abstract]  
FEDERAL AND STATE INCOME TAXES
11. FEDERAL AND STATE INCOME TAXES
 
Under GAAP, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax reporting purposes.
 
Significant components of the Company's deferred tax liabilities and assets at December 31 are as follows:
 
   
2012
  
2011
 
   
(in thousands)
 
   
Current
  
Long-Term
  
Current
  
Long-Term
 
              
Deferred tax liabilities:
            
Property and equipment
 $-  $69,667  $-  $65,236 
Unrealized gains on securities
  2,591   -   2,879   - 
Prepaid expenses and other
  4,171   -   4,138   - 
                  
Total deferred tax liabilities
  6,762   69,667   7,017   65,236 
                  
Deferred tax assets:
                
Allowance for doubtful accounts
  439   -   787   - 
Alternative minimum tax credit carryforward
  -   193   -   215 
QAFMV tax credit carryforward
  -   864   -   864 
New hire tax credit
  -   124   -   124 
Compensated absences
  616   -   668   - 
Self-insurance allowances
  787   -   767   - 
Share-based compensation
  -   582   -   448 
Goodwill
  -   364   -   691 
Marketable equity securities
  723   -   1,691   - 
Net operating loss carryover
  -   23,115   -   18,522 
Capital loss carryover
  915   -   821   - 
Non-competition agreement
  -   47   -   64 
Other
  10   10   6   15 
                  
Total deferred tax assets
  3,490   25,299   4,740   20,943 
                  
Net deferred tax liability
 $3,272  $44,368  $2,277  $44,293 
 
The reconciliation between the effective income tax rate and the statutory Federal income tax rate for the years ended December 31, 2012, 2011 and 2010 is presented in the following table:
 
   
2012
  
2011
  
2010
 
   
(in thousands)
 
   
Amount
  
Percent
  
Amount
  
Percent
  
Amount
  
Percent
 
                    
Income tax at the statutory federal rate
 $1,222   34.0  $(1,901)  34.0  $(545)  34.0 
Nondeductible expense
  138   3.8   171   (3.0)  217   (13.5)
QAFMV credit
  -   -   -   -   (570)  35.6 
New hire credit
  -   -   (124)  2.2   -   - 
State income taxes—net of federal benefit
  56   1.6   (879)  15.7   (50)  3.1 
                          
Total income tax expense (benefit)
 $1,416   39.4  $(2,733)  48.9  $(948)  59.2 
 
The provision (benefit) for income taxes consisted of the following:
 
   
2012
  
2011
  
2010
 
   
(in thousands)
 
Current:
         
Federal
 $-  $-  $- 
State
  51   35   195 
    51   35   195 
Deferred:
            
Federal
  1,166   (1,904)  (970)
State
  199   (864)  (173)
    1,365   (2,768)  (1,143)
              
Total income tax expense (benefit)
 $1,416  $(2,733) $(948)
 
The Company has alternative minimum tax credits of approximately $193,000 at December 31, 2012, which have no expiration date under the current federal income tax laws and general business credits of approximately $988,000 which begin to expire after the year 2030. The Company also has net operating loss carryovers for federal income purposes of approximately $60,892,000 which begin to expire after the year 2030.
 
The Company does not have any material accrued interest or penalties associated with any unrecognized tax benefits. The Company's policy is to account for interest and penalties related to uncertain tax positions, if any, in income tax expense. The Company did not have any unrecognized tax benefits at December 31, 2012 or December 31, 2011 and there was no change in total gross unrecognized tax benefit liabilities for the year ended December 31, 2012.
 
The Company and its subsidiaries are subject to U.S. and Canadian federal income tax laws as well as the income tax laws of multiple state jurisdictions. The major tax jurisdictions in which the Company operates generally provide for a deficiency assessment statute of limitation period of three years and as a result, the Company's tax years 2009 and forward remain open to examination in those jurisdictions.
 
During 2007, the Company contracted with a third-party qualified intermediary in order to implement a like-kind exchange tax program. Under the program, dispositions of eligible trucks or trailers and acquisitions of replacement trucks or trailers are made in a form whereby any associated tax gains related to the disposal are deferred. To qualify for like-kind exchange treatment, we exchange, through our qualified intermediary, eligible trucks or trailers being disposed with trucks or trailers being acquired that allows us to generally carryover the tax basis of the trucks or trailers sold. The program is expected to result in a significant deferral of federal and state income taxes. Under the program, the proceeds from the sale of eligible trucks or trailers carry a Company-imposed restriction for the acquisition of replacement trucks or trailers. These proceeds may be disqualified under the program at any time and at the Company's sole discretion, however income tax deferral would not be available for any sale for which the Company disqualifies the related proceeds. At December 31, 2012, the Company had $503,000 of restricted cash held by the third-party qualified intermediary. At December 31, 2011, the Company had $718,000 of restricted cash held by the third-party qualified intermediary. Restricted cash is accounted for in "Accounts receivable-other".