Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

 v2.3.0.11
Income Taxes
 6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

11.           The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2007. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.

 

The provision consists of the following (in thousands):

 

 

 

Six months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

922

 

$

535

 

$

566

 

$

320

 

State

 

268

 

179

 

165

 

117

 

Canada

 

103

 

82

 

46

 

44

 

 

 

1,293

 

796

 

777

 

481

 

 

 

 

 

 

 

 

 

 

 

Deferred tax expense

 

65

 

204

 

43

 

95

 

 

 

$

1,358

 

$

1,000

 

$

820

 

$

576

 

Effective tax rate

 

39.6

%

37.3

%

40.0

%

35.3

%

 

The effective tax rate for the six and three months ended June 30, 2010 was impacted by a benefit of $78,000 related to the reversal of the Company’s liability related to uncertain tax positions.