INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

7. INCOME TAXES

Significant components of the Company's deferred tax assets and liabilities as of December 31 were as follows (in thousands):

	2011		2010
Deferred tax liabilities:
Property, plant and equipment	$	37,149	$	29,153
		37,149		29,153
Deferred tax assets:
Employee benefits		409		541
Uncompleted contracts		17		375
Stock based compensation expense		216		224
Federal net operating loss		9,292		—
Other		223		161
Total deferred tax assets:		10,157		1,301
Net deferred tax liabilities:	$	26,992	$	27,852

Our federal net operating loss generated during our 2011 tax year can be carried back two years or carried forward twenty years.

Significant components of income tax expense for the years ended December 31 were as follows (in thousands):

	2011			2010		2009
Current:
Federal	$	—		$	4,496	$	5,864
State		239			406		334
Total current		239			4,902		6,198
Deferred:
Federal		(828	)		3,085		4,860
State		(55	)		279		277
Total deferred		(883	)		3,364		5,137
Income taxes	$	(644	)	$	8,266	$	11,335

A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company's income tax expense for the years ended December 31 is as follows (in thousands):

	2011			%			2010			%			2009			%
U.S. statutory rate	$	(857	)		35.0	%	$	7,476			35.0	%	$	11,249			35.0	%
Increase (decrease) resulting from:
State income taxes		289			(11.8	)		893			4.2			397			1.2
Qualified Production Activities
Income—Deduction		—			—			(205	)		(1.0	)		(269	)		(0.8	)
Federal Work Opportunity Tax Credit		—			—			—			—			(117	)		(0.4	)
Other		(76	)		3.1			102			0.5			75			0.3
Income tax expense	$	(644	)		26.3	%	$	8,266			38.7	%	$	11,335			35.3	%