Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 9 Months Ended
Sep. 30, 2012
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 combined federal and state tax rate for 2012 will be approximately 37%.  The Company’s effective tax rate was 24.1% and 36.9% for the three months ended September 30, 2012 and 2011, respectively.  The Company’s effective tax rate for the nine months ended September 30, 2012 and 2011 was 33.3% and 39.2%, respectively.  The effective tax rate for the three months ended September 30, 2012 was lower than the corresponding quarter in 2011 due to the Company recognizing less income slightly offset by a decreased domestic productions activities deduction in the current period as compared to the prior year’s corresponding period. The Company also recognized an additional benefit related to 2011 Federal tax credits in the third quarter of 2012 with the filing of the Company’s 2011 Federal tax return. The effective tax rate for the nine months ended September 30, 2012 was lower than the corresponding period in 2011 due to the Company recognizing less income slightly offset by a decreased domestic productions activities deduction in the current year along with the Company adjusting the prior year’s net deferred tax liabilities to a higher federal rate for 2011 compared to the actual rate incurred in 2010.