| Income Taxes |
(10) Income Taxes
We are subject to U.S. federal income tax as well as income tax in multiple state and local jurisdictions. We have concluded all U.S. federal income tax matters as well as material state and local tax matters for years through 2007.
We file consolidated federal income tax returns that include all of our subsidiaries. The components of the provision for income taxes for the years ended December 31, 2011, 2010, and 2009 are as follows (in thousands):
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
Current |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
9,457 |
|
|
$ |
13,314 |
|
|
$ |
12,075 |
|
State |
|
|
1,680 |
|
|
|
1,760 |
|
|
|
1,942 |
|
| |
|
|
11,137 |
|
|
|
15,074 |
|
|
|
14,017 |
|
Deferred |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
1,188 |
|
|
|
(752 |
) |
|
|
622 |
|
State |
|
|
95 |
|
|
|
24 |
|
|
|
(64 |
) |
| |
|
|
1,283 |
|
|
|
(728 |
) |
|
|
558 |
|
Provision for income taxes |
|
$ |
12,420 |
|
|
$ |
14,346 |
|
|
$ |
14,575 |
|
The differences between the amount of tax computed at the federal statutory rate of 35% and the provision for income taxes for the years ended December 31, are as follows (in thousands):
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
Tax at statutory federal income tax rate
|
|
$ |
11,540 |
|
|
$ |
13,312 |
|
|
$ |
13,509 |
|
Increases (decreases) in tax resulting from: |
|
|
|
|
|
|
|
|
|
|
|
|
State taxes, net of federal tax benefit
|
|
|
1,254 |
|
|
|
1,341 |
|
|
|
1,230 |
|
Permanent differences, net |
|
|
192 |
|
|
|
(50 |
) |
|
|
64 |
|
Other, net |
|
|
(566 |
) |
|
|
(257 |
) |
|
|
(228 |
) |
Provision for income taxes |
|
$ |
12,420 |
|
|
$ |
14,346 |
|
|
$ |
14,575 |
|
Our deferred tax assets and liabilities as of December 31, 2011 and 2010, which represent the tax effects of temporary differences between tax and financial accounting bases of assets and liabilities and are measured using current tax rates, are as follows (in thousands):
| |
|
2011 |
|
|
2010 |
|
Current deferred tax assets |
|
$ |
4,823 |
|
|
$ |
4,063 |
|
Current deferred tax liabilities |
|
|
(3,468 |
) |
|
|
(2,461 |
) |
Net current deferred tax assets |
|
|
1,355 |
|
|
|
1,602 |
|
| |
|
|
|
|
|
|
|
|
Noncurrent deferred tax assets |
|
|
5,299 |
|
|
|
4,631 |
|
Noncurrent deferred tax liabilities |
|
|
(5,068 |
) |
|
|
(3,793 |
) |
Net noncurrent deferred tax assets |
|
|
231 |
|
|
|
838 |
|
Net deferred tax assets |
|
$ |
1,586 |
|
|
$ |
2,440 |
|
The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2011 and 2010, are as follows (in thousands):
| |
|
2011 |
|
|
2010 |
|
Gross deferred tax assets |
|
|
|
|
|
|
Deferred compensation and accrued paid leave |
|
$ |
5,125 |
|
|
$ |
5,130 |
|
Accrued expenses |
|
|
946 |
|
|
|
803 |
|
Stock-based compensation |
|
|
530 |
|
|
|
694 |
|
Interest rate swaps |
|
|
429 |
|
|
|
- |
|
Reserve for contract disallowances |
|
|
316 |
|
|
|
267 |
|
Acquisition-related expenses |
|
|
281 |
|
|
|
303 |
|
Capitalized inventory |
|
|
125 |
|
|
|
- |
|
Other |
|
|
61 |
|
|
|
3 |
|
Total gross deferred tax assets |
|
|
7,813 |
|
|
|
7,200 |
|
| |
|
|
|
|
|
|
|
|
Gross deferred tax liabilities |
|
|
|
|
|
|
|
|
Depreciation |
|
|
(2,563 |
) |
|
|
(2,380 |
) |
Deferred revenues |
|
|
(2,113 |
) |
|
|
(1,665 |
) |
Intangible assets |
|
|
(1,551 |
) |
|
|
(715 |
) |
Total gross deferred tax liabilities |
|
|
(6,227 |
) |
|
|
(4,760 |
) |
| |
|
|
|
|
|
|
|
|
Net deferred tax assets |
|
$ |
1,586 |
|
|
$ |
2,440 |
|
|