Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 9 Months Ended
Sep. 30, 2011
Income Taxes  
Income Taxes

13.          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 2011 will be approximately 39%.  The Company’s effective tax rate was 36.9% and 51.1% for the three months ended September 30, 2011 and 2010, respectively. The Company’s effective tax rate for the nine months ended September 30, 2011 and 2010 was 39.2% and (44.8%), respectively.  The effective tax rate (benefit) for the nine months ended September 30, 2011 was lower than the corresponding period in 2010 due to adjusting the Company’s net deferred tax liabilities to the higher estimated federal rate for 2011 compared to the actual rate incurred in 2010.