|
Income Taxes
|
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2012
|
|||
| Income Taxes [Abstract] | |||
| Income Taxes |
The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes.
We had an income tax benefit of $168,000 and income tax expense of $2,399,000 for continuing operations for the three months ended September 30, 2012 and the corresponding period of 2011, respectively, and income tax benefit of $1,126,000 and income tax expense of $3,504,000 for the nine months ended September 30, 2012 and the corresponding period of 2011, respectively. The Company's effective tax rates were approximately 32.9% and 35.2% for the three months ended September 30, 2012 and 2011, respectively, and 32.6% and 35.2% for the nine months ended September 30, 2012 and 2011, respectively.
The provision for income taxes is determined in accordance with ASC 740, "Income Taxes". Deferred income tax assets and liabilities are recognized for future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
The Company regularly assesses the likelihood that the deferred tax asset will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance to reduce the carrying value of the net deferred income tax assets to an amount that is more likely than not to be realized.
|