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Income Taxes
 9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company’s effective tax rate is based on expected income, statutory tax rates and tax planning opportunities available to it.  For interim financial reporting, the Company estimates its annual tax rate based on projected taxable income (or loss) for the full year and records a quarterly tax provision in accordance with the anticipated annual rate.  The effective rate for the three months ended September 30, 2012 and 2011 was 35.7% and 31.7%, and for the nine months was 34.2% and 34.2% in each period, respectively.

In the current year, the rate differed from the Company’s statutory rate of 35% primarily due to the losses incurred in the current year, offset by state income taxes, and the non-deductibility of certain permanent tax items, such as incentive stock compensation expense.
 
Current
 
Deferred
 
Total
Three months ended September 30, 2012
 
 
 
 
 
U.S. Federal
$
463

 
$
(1,337
)
 
$
(874
)
State and local
(61
)
 
50

 
(11
)
 
$
402

 
$
(1,287
)
 
$
(885
)
Three months ended September 30, 2011:
 

 
 

 
 

U.S. Federal
$
(4,583
)
 
$
1,762

 
$
(2,821
)
State and local
(160
)
 
91

 
(69
)
 
$
(4,743
)
 
$
1,853

 
$
(2,890
)


 
Current
 
Deferred
 
Total
Nine months ended September 30, 2012
 
 
 
 
 
U.S. Federal
$
(2,721
)
 
$
(3,788
)
 
$
(6,509
)
State and local
(68
)
 
(364
)
 
(432
)
 
$
(2,789
)
 
$
(4,152
)
 
$
(6,941
)
Nine months ended September 30, 2011
 

 
 

 
 

U.S. Federal
$
(8,294
)
 
$
4,299

 
$
(3,995
)
State and local
(256
)
 
147

 
(109
)
 
$
(8,550
)
 
$
4,446

 
$
(4,104
)


The Company believes it will be able to utilize its net operating loss carryforwards in the future and therefore has not recorded a valuation allowance.

The Company files US Federal and various state income tax returns. In July 2012, consent was received from the IRS permitting the Company to change its tax accounting method for certain service revenue effective for the taxable year ended December 31, 2011, which resulted in the deferral of approximately $10.9 million of taxable income. At the time the consent was given, the Company was under audit by the IRS for its 2009 and 2010 tax years, and the Company expects that its 2011 and 2012 tax returns will also be reviewed due to the losses generated in 2011 and 2012. The Company does not expect any material changes to its returns will result from these audits and reviews.

The Company does not believe that its tax positions will significantly change due to any settlement and/or expiration of statutes of limitations prior to September 30, 2013.