Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 3 Months Ended
Mar. 31, 2013
Income Taxes  
Income Taxes

12.                               Income Taxes

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  The largest item affecting deferred taxes is the difference between book and tax amortization of goodwill and other intangibles amortization.  The Company estimates that the annual effective tax rate for 2013 will be approximately 37%.  The Company’s effective tax rate was 38.6% and 31.5% for the three months ended March 31, 2013 and 2012, respectively.  The effective tax rate (benefit) for the three months ended March 31, 2013 was higher than the corresponding period in 2012 due to the Company recognizing a lower net loss in the current period as compared to the corresponding period in the prior year.   The effective tax rate (benefit) for the three months ended March 31, 2013 was higher than the estimated annual effective tax rate for the entire year of 2013, due to the Company’s seasonal income cycle which results in a loss in the first quarter but overall projected income for the year 2013 being higher than 2012.