Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 9 – Income taxes:

	Nine months ended
	September 30,
	2010		2011
	(In thousands)
Expected income tax expense, at statutory rate	$	7,645	$	13,145
U.S. state income tax expense, net		715		2,272
Other, net		36		25
Income tax expense	$	8,396	$	15,442

Our provision for income taxes in the first nine months of 2011 includes a $.7 million non-cash charge for state deferred income taxes. The non-cash charge is related to an increase in our effective state income tax rate primarily as a result of an increase in the tax rate of the State of Illinois.

In August 2011, we became a member of Contran's consolidated U.S. federal income tax group (the "Contran Tax Group") pursuant to Contran's purchase of additional shares of our common stock discussed in Note 7 which resulted in Contran's ownership interest increasing to more than 80%. We also file consolidated income tax returns with Contran in various U.S. state jurisdictions. As a member of the Contran Tax Group, we are now a party to a tax sharing agreement with Contran which provides that, beginning in August 2011, we compute our tax provision for U.S. income taxes on a separate-company basis using the tax elections made by Contran. Pursuant to the tax sharing agreement, we make payments to or receive payments from Contran in amounts we would have paid to or received from the U.S. Internal Revenue Service or the applicable state tax authority had we not been a member of the Contran Tax Group for all periods after August 2011.

Under applicable law, we, as well as every other member of the Contran Tax Group, are each jointly and severally liable for the aggregate federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. Contran has agreed, however, to indemnify us for any liability for income taxes of the Contran Tax Group in excess of our tax liability previously computed and paid by us in accordance with the tax allocation policy discussed above.