Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 6 Months Ended
Jun. 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 effective combined federal and state tax rate for 2011 will be approximately 39%.  The Company’s effective tax rate was 36.8% and (105.8%) for the three months ended June 30, 2011 and 2010, respectively and was 40.2% and (47.4%) for the six months ended June 30, 2011 and 2010, respectively.  The effective tax rate (benefit) for the three and six months ended June 30, 2011 was higher than the corresponding period in 2010 due to the Company recognizing income in the current year quarter as compared to recognizing a loss in the prior year’s corresponding quarter.   The effective tax rate (benefit) for the six months ended June 30, 2011 differed from the corresponding period in 2010 due to the Company recognizing income in the current period and a loss in the prior period. Further, the applicable tax rate used to measure the Company’s net deferred tax liability was adjusted in 2011 as compared to 2010 based on the graduated U.S. federal tax rate for the period in which the deferred tax liability is expected to be realized.