Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 6 Months Ended
Jun. 30, 2012
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 2008. 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,

 

 

 

2012

 

2011

 

2012

 

2011

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

1,208

 

$

922

 

$

726

 

$

566

 

State

 

228

 

268

 

137

 

165

 

Canada

 

123

 

103

 

44

 

46

 

 

 

1,559

 

1,293

 

907

 

777

 

 

 

 

 

 

 

 

 

 

 

Deferred tax (benefit) expense

 

(18

)

65

 

(42

)

43

 

 

 

$

1,541

 

$

1,358

 

$

865

 

$

820

 

Effective tax rate

 

39.8

%

39.6

%

39.9

%

40.0

%