Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes [Text Block]

(7)       Income Taxes

Total income tax expense of $7.5 million, $9.5 million and $3.9 million for the years ended December 31, 2011, 2010 and 2009, respectively, was allocated to income in each year.

Income tax expense consists of the following (amounts in thousands):

		Years Ended December 31,
		2011	2010	2009
Deferred tax expense:
Federal taxes	$	6,344	8,086	3,494
State taxes		1,141	1,402	442
	$	7,485	9,488	3,936

Total income tax expense differed from the “expected” income tax expense determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands):

		Years Ended December 31,
		2011	2010	2009
“Expected” statutory tax expense	$	4,580	6,455	2,608
State income taxes, net of federal expense		1,141	1,129	456
Income tax effect of nondeductible entertainment expenses		737	775	703
Income tax effect of nondeductible lobbying expenses		327	405	380
Income tax effect of nondeductible officer compensation		758	722	761
Other, net		(58)	2	(972)
	$	7,485	9,488	3,936

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2011 and 2010 are summarized below (amounts in thousands):

			2011	2010
Current deferred tax assets, net of current deferred tax liability:
	Net operating loss carryforwards	$	7,796	-
	Compensated absences, accrued for financial reporting purposes		2,664	2,115
	Workers compensation and self insurance health reserves, principally due to accrual for financial reporting purposes		1,068	810
	Accounts receivable, principally due to allowance for doubtful receivables		2,379	3,770
	Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes		131	92
	Other		1,517	3,358
	Total current deferred tax assets	$	15,555	10,145
Long-term deferred tax assets:
	Net operating loss carryforwards	$	119,762	88,967
	Deferred revenue for financial reporting purposes		18,097	19,481
	Alternative minimum tax credits		1,895	1,895
	Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes		2,581	2,908
	Asset retirement obligations in excess of amounts recognized for tax purposes		6,248	1,885
	Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes		4,394	8,647
	Other		469	1,168
	Total long-term deferred tax assets		153,446	124,951
Long-term deferred tax liabilities:
	Plant and equipment, principally due to differences in depreciation		212,234	182,490
	Intangible assets		56,508	44,862
	Total long-term deferred tax liabilities		268,742	227,352
	Net long-term deferred tax liabilities	$	115,296	102,401

At December 31, 2011, we have tax net operating loss carryforwards of $311.3 million that will begin expiring in 2019 if not utilized, and alternative minimum tax credit carryforwards of $1.9 million available to offset regular income taxes payable in future years.Our utilization of remaining acquired net operating loss carryforwards is subject to annual limitations pursuant to Internal Revenue Code section 382 which could reduce or defer the utilization of these losses.

Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands):

Years ending December 31,		Federal	State
2019		17,047	16,474
2020		44,744	43,797
2021		29,614	28,987
2022		14,081	13,788
2023		3,968	3,903
2024		722	-
2025		737	-
2026		150	-
2027		1,010	-
2028		39,879	39,715
2029		48,370	47,558
2031		110,933	109,376
Total tax net operating loss carryforwards	$	311,255	303,598

Tax benefits associated with recorded deferred tax assets are considered to be more likely than not realizable through taxable income earned in carryback years, future reversals of existing taxable temporary differences, and future taxable income exclusive of reversing temporary differences and carryforwards. The amount of deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income during the carryforward period are reduced.

We file federal income tax returns in the U.S. and in various state jurisdictions. We are no longer subject to U.S. or state tax examinations by tax authorities for years 2007 and earlier except that certain U.S. federal income tax returns for years after 1997 are not closed by relevant statutes of limitations due to unused net operating losses reported on those income tax returns.

We recognize accrued interest on unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses. We did not have any unrecognized tax benefits as of December 31, 2011, 2010 and 2009, and accordingly, we did not recognize any interest expense. Additionally, we recorded no penalties during the years ended December 31, 2011, 2010 and 2009.

We did not record any excess tax benefit generated from stock options exercised during the years ended December 31, 2011, 2010 and 2009, since we are in a net operating loss carryforward position and the income tax deduction will not yet reduce income taxes payable. The cumulative excess tax benefits generated for stock options exercised that have not been recognized is $3.6 million at December 31, 2011.