Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes

Income Taxes

12. Income Taxes

For the three months ended September 30, 2012, the Company recognized income tax expense of $2,623 on pre-tax earnings of $5,077 compared to $3,760 income tax expense on pre-tax earnings of $9,825 for the three months ended September 30, 2011. For the nine months ended September 30, 2012, the Company recognized income tax expense of $7,007 on pre-tax earnings of $15,969 compared to $9,305 income tax expense on pre-tax earnings of $23,863 for the nine months ended September 30, 2011. Income tax expense is based on a projected effective tax rate of approximately 43.9% for the nine months ended September 30, 2012 compared to approximately 39.0% for the nine months ended September 30, 2011. The Company’s effective tax rate increased due to certain non-deductible transaction costs associated with the Central Parking merger and the expiration of Work Opportunity Tax Credit (WOTC) Program and other similar tax credit programs on December 31, 2011.

As of September 30, 2012, the Company has not identified any uncertain tax positions that would have a material impact on the Company’s financial position. The Company recognizes potential interest and penalties related to uncertain tax positions, if any, in income tax expense.

The tax years that remain subject to examination for the Company’s major tax jurisdictions at September 30, 2012 are shown below:

2009 – 2011	United States — federal income tax
2005 – 2011	United States — state and local income tax
2008 – 2011	Canada