Income Taxes

The components of the Company’s provision for income taxes were as follows (in thousands):



	Year Ended December 31, 2012
	2012		2011		2010
Current:
Federal	$	11,238	$	—	$	—
Foreign, state and local	2,007		1,438		331
Deferred:
Federal	9,491		13,640		1,859
Foreign, state and local	654		851		(82		)
Provision for income taxes	$	23,390	$	15,929	$	2,108

The Company’s income tax provision varied from the amounts calculated by applying the U.S. statutory income tax rate to the pretax income as shown in the following reconciliations (in thousands):



	2012			2011			2010
Statutory federal rate	$	21,322		$	14,641		$	1,938
Meals and entertainment	195			129			114
State income taxes — net of federal benefit	1,794			1,344			195
Tax credit	(26		)	(109		)	(85		)
Canadian income taxes	(31		)	(40		)	50
Preferred dividend	—			70			68
Other	136			(106		)	(172		)
Total	$	23,390		$	15,929		$	2,108

The tax rate effects of temporary differences that give rise to significant elements of deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 were as follows (in thousands):



	2012			2011
Current deferred income tax assets:
Net operating losses	$	—		$	7,130
Accounts receivable	1,304			849
Accounts payable and accrued expenses	2,496			1,518
Total	$	3,800		$	9,497
Noncurrent deferred income tax assets (liabilities):
Net operating losses	$	730		$	645
Goodwill	(27,878		)	(23,054		)
PP&E	(14,885		)	(7,441		)
Deferred Compensation	1,294			1,193
Other, net	—			2,491
Total	$	(40,739	)	$	(26,166	)

The net noncurrent deferred income tax liability of $40.7 million and $26.2 million is classified in the consolidated balance sheets as a component of other long-term liabilities at December 31, 2012 and 2011, respectively.

There were no unrecognized tax benefits recorded as of December 31, 2012 and 2011. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Income tax related interest and penalties were immaterial as of December 31, 2012 or 2011. The Company is subject to federal and state tax examinations for all tax years subsequent to December 31, 2008. Although the pre-2009 years are no longer subject to examinations by the Internal Revenue Service (IRS) and various state taxing authorities, net operating loss carryforwards generated in those years were used by the Company during 2011 and 2012 and may still be adjusted upon examination by the IRS or state taxing authorities given they were used in a future period.