Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Significant Components of Deferred Income Tax Assets and Liabilities

Significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows:

	December 31,
	2011			2010
	(in thousands)
Deferred tax liabilities:
Prepaid assets	$	(9,268	)	$	(10,051	)
Depreciation		(8,616	)		(8,390	)
Software development costs		(2,858	)		(1,198	)
Other		(1,137	)		(751	)
Total deferred tax liabilities		(21,879	)		(20,390	)

Deferred tax assets:
Accrued incentive compensation		3,877			3,100
Net operating loss carryforward		2,290			2,360
Workers' compensation accruals		3,744			3,055
Long-term capital loss carry-forward		148			188
Accrued rent		1,132			1,260
Stock-based compensation		2,908			2,657
Uncollectible accounts receivable		389			375
Total deferred tax assets		14,488			12,995
Valuation allowance		(148	)		(188	)
Total net deferred tax assets		14,340			12,807

Net deferred tax liabilities	$	(7,539	)	$	(7,583	)

Net current deferred tax assets	$	3,233		$	1,267
Net noncurrent deferred tax liabilities		(10,772	)		(8,850	)
	$	(7,539	)	$	(7,583	)

Components of Income Tax Expense

The components of income tax expense are as follows:

	Year ended December 31,
	2011			2010		2009
	(in thousands)
Current income tax expense:
Federal	$	16,816		$	12,668	$	14,478
State		3,535			1,734		1,994
Total current income tax expense		20,351			14,402		16,472
Deferred income tax (benefit) expense:
Federal		47			1,033		(4,162	)
State		(93	)		146		(235	)
Total deferred income tax (benefit) expense		(46	)		1,179		(4,397	)
Total income tax expense	$	20,305		$	15,581	$	12,075

Reconciliation of Income Tax Expense

The reconciliation of income tax expense computed at U.S. federal statutory tax rates to the reported income tax expense from continuing operations is as follows:

	Year ended December 31,
	2011			2010			2009
	(in thousands)

Expected income tax expense at 35%	$	17,770		$	13,307		$	10,027
State income taxes, net of federal benefit		2,249			1,273			1,053
Nondeductible expenses		904			1,092			1,093
Research and development credit		(558	)		––			––
Other, net		(60	)		(91	)		(98	)
Reported total income tax expense	$	20,305		$	15,581		$	12,075