XML 49 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
9 Months Ended
Sep. 30, 2012
INCOME TAXES

6.     INCOME TAXES

The Company accounts for income taxes in accordance with FASB’s Codification topic, Income Taxes. Deferred income taxes arise from the temporary differences in the recognition of income and expenses for tax purposes. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Deferred tax assets and liabilities are comprised of the following at September 30, 2012 and December 31, 2011:

 

     September 30,      December 31,  
     2012      2011  

Deferred tax assets:

     

Accounts receivable

   $ 528,579       $ 672,056   

Accrued vacation

     1,479,598         1,252,560   

Stock-based compensation

     221,199         334,383   

Accrued liabilities

     903,536         629,906   
  

 

 

    

 

 

 

Total deferred tax assets

   $ 3,132,912       $ 2,888,905   
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Other comprehensive income

   $ 15,181       $ 4,718   

Depreciation

     2,158,251         1,930,401   
  

 

 

    

 

 

 

Total deferred tax liabilities

   $ 2,173,432       $ 1,935,119   
  

 

 

    

 

 

 

Significant components of the Company’s income tax provision in the Condensed Statements of Income for the nine months ended September 30 are as follows:

 

     2012     2011  

Current provision:

    

Federal

   $ 7,996,220      $ 10,650,114   

State

     710,757        2,327,940   

Deferred provision:

    

Federal

     (14,500     (893,755

State

     (1,657     (102,143
  

 

 

   

 

 

 

Total income tax provision

   $ 8,690,820      $ 11,982,156   
  

 

 

   

 

 

 

The difference between income taxes at the U. S. federal statutory income tax rate of 35% and those reported in the Condensed Statements of Income for the nine months ended September 30 is as follows:

 

     2012     2011  

Income taxes at U. S. Federal statutory rate

   $ 10,332,605      $ 10,941,202   

Provision-to-return adjustments

     (1,889,311     —     

State income tax, net of federal tax effect

     1,059,289        1,411,018   

Tax credits and other

     (811,763     (370,064
  

 

 

   

 

 

 

Total income tax provision

   $ 8,690,820      $ 11,982,156   
  

 

 

   

 

 

 

The provision-to-return adjustments presented above for the nine months ended September 30, 2012 are primarily related to differences between the Domestic Production Activities Deduction reported on the 2011 federal income tax return and amounts previously estimated.

The Company had unrecognized tax benefits of $744,705 related to uncertain tax positions as of September 30, 2012 under the provisions of FASB Codification topic, Income Taxes, which is recorded in other accrued liabilities on the Condensed Balance Sheet. No accrued interest or penalties for such positions is recorded. The federal returns for the tax years 2004, 2005, and 2006 are currently under examination by the Internal Revenue Service, primarily in relation to research credits claimed on those returns by the Company. The federal returns for tax years 2007 through 2011 remain open to examination, and the tax years 2006 through 2011 remain open to other taxing jurisdictions to which the Company is subject.