Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(10)  Income Taxes

We are subject to U.S. federal income tax as well as income tax in multiple state and local jurisdictions.  We have concluded all U.S. federal income tax matters as well as material state and local tax matters for years through 2007.

We file consolidated federal income tax returns that include all of our subsidiaries.  The components of the provision for income taxes for the years ended December 31, 2011, 2010, and 2009 are as follows (in thousands):

	2011		2010			2009
Current
Federal	$	9,457	$	13,314		$	12,075
State		1,680		1,760			1,942
		11,137		15,074			14,017
Deferred
Federal		1,188		(752	)		622
State		95		24			(64	)
		1,283		(728	)		558
Provision for income taxes	$	12,420	$	14,346		$	14,575

The differences between the amount of tax computed at the federal statutory rate of 35% and the provision for income taxes for the years ended December 31, are as follows (in thousands): 

	2011			2010			2009
Tax at statutory federal income tax rate	$	11,540		$	13,312		$	13,509
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit		1,254			1,341			1,230
Permanent differences, net		192			(50	)		64
Other, net		(566	)		(257	)		(228	)
Provision for income taxes	$	12,420		$	14,346		$	14,575

Our deferred tax assets and liabilities as of December 31, 2011 and 2010, which represent the tax effects of temporary differences between tax and financial accounting bases of assets and liabilities and are measured using current tax rates, are as follows (in thousands):

	2011			2010
Current deferred tax assets	$	4,823		$	4,063
Current deferred tax liabilities		(3,468	)		(2,461	)
Net current deferred tax assets		1,355			1,602
Noncurrent deferred tax assets		5,299			4,631
Noncurrent deferred tax liabilities		(5,068	)		(3,793	)
Net noncurrent deferred tax assets		231			838
Net deferred tax assets	$	1,586		$	2,440

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2011 and 2010, are as follows (in thousands):

	2011			2010
Gross deferred tax assets
Deferred compensation and accrued paid leave	$	5,125		$	5,130
Accrued expenses		946			803
Stock-based compensation		530			694
Interest rate swaps		429			-
Reserve for contract disallowances		316			267
Acquisition-related expenses		281			303
Capitalized inventory		125			-
Other		61			3
Total gross deferred tax assets		7,813			7,200
Gross deferred tax liabilities
Depreciation		(2,563	)		(2,380	)
Deferred revenues		(2,113	)		(1,665	)
Intangible assets		(1,551	)		(715	)
Total gross deferred tax liabilities		(6,227	)		(4,760	)
Net deferred tax assets	$	1,586		$	2,440