Income Taxes

The following table presents the components of our consolidated income tax expense for each fiscal year ended December 31:



	Current			Deferred			Total
2011
U.S. Federal	$	(12,386	)	$	6,736		$	(5,650	)
State and local	847			(1,544		)	(697		)
	$	(11,539	)	$	5,192		$	(6,347	)
2010
U.S. Federal	$	6,658		$	5,019		$	11,677
State and local	77			205			282
	$	6,735		$	5,224		$	11,959
2009
U.S. Federal	$	11,484		$	(392	)	$	11,092
State and local	1,063			(621		)	442
	$	12,547		$	(1,013	)	$	11,534

The Company’s income tax provision reconciles to the provision at the statutory U.S. federal income tax rate for each year ended December 31 as follows:



	2011			2010			2009
Statutory amount (computed at 35%)	$	(6,812	)	$	11,783		$	11,048
State income tax, net of federal benefit	(415		)	252			290
Permanent differences	576			(197		)	5
Other (net)	304			121			191
Consolidated income tax provision	$	(6,347	)	$	11,959		$	11,534
Consolidated effective tax rate	32.6		%	35.3		%	36.5		%

The Company’s deferred tax (assets) liabilities are as follows:



	December 31, 2011					December 31, 2010
	Current		Long- term			Current		Long- term
Assets related to:
Accrued liabilities	$	1,182	$	—		$	1,482	$	—
Intangible assets			2,712					2,677
Net operating loss carryforward	—		2,457			—
Non-qualified stock options			291					104
Other			413			312		1,206
Total assets	1,182		5,873			1,794		3,987
Liabilities related to:
Depreciation and amortization			(25,355		)			(20,652		)
Goodwill and gain on purchase of a business			(1,738		)
Other	—		(67		)	—		(42		)
Total liabilities	—		(27,160		)	—		(20,694		)
Net deferred assets (liabilities)	$	1,182	$	(21,287	)	$	1,794	$	(16,707	)

As reported in the balance sheets:



	December 31, 2011			December 31, 2010

Net current deferred tax assets	1,182			1,794
Net non-current deferred tax liabilities	(21,287		)	(16,707		)
Total net deferred tax liabilities:	$	(20,105	)	$	(14,913	)

In assessing the realizability of deferred tax assets at December 31, 2011, the Company considered whether it was more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets depends upon the generation of future taxable income during the periods in which these temporary differences become deductible. As of December 31, 2011, the Company believes that all of the deferred tax assets will be utilized and therefore has not recorded a valuation allowance.

The Company recorded a net operating loss carryforward ("NOL") in 2011 of $2.5 million for state income tax reporting purposes due to the loss sustained in the year. The Company believes it will be able to utilize these NOL's against future income and therefore no valuation allowance has been established. For federal tax reporting purposes, the Company carried the NOL recorded in 2011 back to 2009 and increased its income tax receivable accordingly.

Although the Company believes its recorded assets and liabilities are reasonable, tax regulations are subject to interpretation and tax litigation is inherently uncertain; therefore the Company’s assessments can involve both a series of complex judgments about future events and rely heavily on estimates and assumptions. Although the Company believes that the estimates and assumptions supporting its assessments are reasonable, the final determination of tax audit settlements and any related litigation could be materially different from that which is reflected in historical income tax provisions and recorded assets and liabilities. If the Company were to settle an audit or a matter under litigation, it could have a material effect on the income tax provision, net income, or cash flows in the period or periods for which that determination is made. Any accruals for tax contingencies are provided for in accordance with US GAAP.

The Company believes that it has no uncertain tax positions. The Company does not believe that its tax positions will significantly change due to the settlement and expiration of statutes of limitations prior to December 31, 2012.

The Company and its subsidiaries file income tax returns in the United States federal jurisdiction and in various states. With few exceptions, the Company remains subject to federal and state income tax examinations for the years of 2008, 2009, 2010 and 2011. The Company’s policy is to recognize interest and penalties related to any unrecognized tax liabilities as additional tax expense. No interest or penalties have been accrued at December 31, 2011 and 2010, as the Company has not recorded any uncertain tax positions. The Company believes it has appropriate and adequate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.