Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Provision for Income Taxes

We file consolidated federal income tax returns that include all of our subsidiaries. The components of the provision for income taxes from continuing operations for the years ended December 31, 2012, 2011, and 2010 are as follows (in thousands):

	2012			2011		2010
Current
Federal	$	14,782		$	9,272	$	13,217
State		2,959			1,647		1,747
		17,741			10,919		14,964
Deferred
Federal		(999	)		1,188		(752	)
State		(254	)		95		24
		(1,253	)		1,283		(728	)
Provision for income taxes	$	16,488		$	12,202	$	14,236

Effective Income Tax Reconciliation

The differences between the amount of tax computed at the federal statutory rate of 35% and the provision for income taxes from continuing operations for the years ended December 31, are as follows (in thousands):

	2012			2011			2010
Tax at statutory federal income tax rate	$	15,348		$	11,343		$	13,212
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit		1,901			1,233			1,331
Permanent differences, net		(77	)		192			(50	)
Other, net		(684	)		(566	)		(257	)
Provision for income taxes	$	16,488		$	12,202		$	14,236

Deferred Tax Assets and Liabilities

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2012 and 2011, are as follows (in thousands):

	2012			2011
Gross deferred tax assets
Deferred compensation and accrued paid leave	$	5,947		$	5,125
Accrued expenses		1,533			946
Stock-based compensation		386			530
Interest rate swaps		456			429
Reserve for contract disallowances		328			316
Acquisition-related expenses		262			281
Capitalized inventory		424			125
Impairment charges		3,445			-
Other		61			61
Total gross deferred tax assets		12,842			7,813

Gross deferred tax liabilities
Depreciation		(3,288	)		(2,563	)
Deferred revenues		(2,746	)		(2,113	)
Intangible assets		(3,942	)		(1,551	)
Total gross deferred tax liabilities		(9,976	)		(6,227	)

Net deferred tax assets	$	2,866		$	1,586