Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Provision for Income Taxes

We file consolidated federal income tax returns that include all of our subsidiaries. The components of the provision for income taxes from continuing operations for the years ended December 31, 2013, 2012, and 2011 are as follows (in thousands):

	2013			2012			2011
Current
Federal	$	12,654		$	14,782		$	9,272
State		2,544			2,959			1,647
		15,198			17,741			10,919
Deferred
Federal		(848	)		(999	)		1,188
State		(26	)		(254	)		95
		(874	)		(1,253	)		1,283
Provision for income taxes	$	14,324		$	16,488		$	12,202

Effective Income Tax Reconciliation

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

	2013			2012			2011
Tax at statutory federal income tax rate	$	13,410		$	15,348		$	11,343
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit		1,630			1,901			1,233
Permanent differences, net		(685	)		(522	)		(221	)
Other, net		(31	)		(239	)		(153	)
Provision for income taxes	$	14,324		$	16,488		$	12,202

Deferred Tax Assets and Liabilities

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2013 and 2012, are as follows (in thousands):

	2013			2012
Gross deferred tax assets
Deferred compensation and accrued paid leave	$	6,805		$	5,947
Accrued expenses		1,489			1,533
Stock-based compensation		510			386
Interest rate swaps		125			456
Reserve for contract disallowances		326			328
Acquisition-related expenses		603			262
Capitalized inventory		409			424
Other		-			61
Total gross deferred tax assets		10,267			9,397

Gross deferred tax liabilities
Depreciation		(3,237	)		(3,288	)
Deferred revenues		(1,921	)		(2,746	)
Goodwill and intangible assets		(1,701	)		(497	)
Total gross deferred tax liabilities		(6,859	)		(6,531	)

Net deferred tax assets	$	3,408		$	2,866