Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

8.     Income Taxes

The provision for income taxes charged to continuing operations was as follows:

	Year Ended December 31,
	2011		2010			2009
	(In thousands)
Current tax expense (benefit):
U.S. Federal	$	6,082	$	1,110		$	(121	)
State		2,752		1,868			(455	)
Foreign		7,234		6,427			5,438
Total current		16,068		9,405			4,862
Deferred tax expense (benefit):
U.S. Federal		26,373		17,532			(10,326	)
State		372		552			1,108
Foreign		186		(244	)		2,140
Total deferred		26,931		17,840			(7,078	)
Total provision	$	42,999	$	27,245		$	(2,216	)

Income (loss) from operations before income taxes was as follows:

	Year Ended December 31,
	2011		2010		2009
	(In thousands)
U.S.	$	95,267	$	52,608	$	(31,868	)
Foreign		27,749		16,263		9,079
Income (loss) from operations before income taxes	$	123,016	$	68,871	$	(22,789	)

The effective income tax rate is reconciled to the statutory federal income tax rate as follows:

	Year Ended December 31,
	2011			2010			2009
Income tax expense (benefit) at federal statutory rate		35.0	%		35.0	%		(35.0	%)
Nondeductible expenses		1.9	%		1.9	%		2.3	%
Nondeductible stock based compensation expense		0.1	%		—			3.0	%
Different rates on earnings of foreign operations		(2.3	%)		(2.6	%)		(5.7	%)
Tax exempt foreign earnings due to tax holidays		(0.2	%)		(0.6	%)		(3.7	%)
Benefit of foreign interest deductible in U.S.		(0.2	%)		—			(2.0	%)
Change in valuation allowance		(1.1	%)		2.2	%		17.5	%
Tax on undistributed earnings		0.2	%		0.2	%		2.6	%
Foreign exchange gain		—			—			2.6	%
Foreign tax withholdings		0.7	%		0.4	%		4.0	%
State tax expense, net		1.8	%		2.6	%		3.6	%
Other		(0.9	%)		0.5	%		1.1	%
Total income tax expense (benefit)		35.0	%		39.6	%		(9.7	%)

Temporary differences and carryforwards which give rise to deferred tax assets and liabilities at December 31, 2011 and 2010 are as follows:

	2011			2010
	(In thousands)
Deferred tax assets:
Net operating losses	$	16,045		$	27,581
Accruals not currently deductible		13,185			12,343
Bad debts		750			2,044
Alternative minimum tax credits		—			5,606
Foreign tax credits		2,026			2,150
Other		4,331			4,043
Total deferred tax assets		36,337			53,767
Valuation allowance		(16,734	)		(20,459	)
Total deferred tax assets, net of allowances		19,603			33,308
Deferred tax liabilities:
Accelerated depreciation and amortization		47,320			32,182
Other		5,922			5,212
Total deferred tax liabilities		53,242			37,394
Total net deferred tax liabilities	$	(33,639	)	$	(4,086	)
Current portion of deferred tax assets	$	13,224		$	27,654
Non current portion of deferred tax assets		341			3
Current portion of deferred tax liabilities		(360	)		(194	)
Non current portion of deferred tax liabilities		(46,844	)		(31,549	)
Net deferred tax liabilities	$	(33,639	)	$	(4,086	)

For state income tax purposes, we have net operating loss carryforwards (“NOLs”) of approximately $228 million available to reduce future state taxable income. These NOLs expire in varying amounts beginning in year 2012 through 2031. Foreign NOLs of approximately $13.0 million are available to reduce future taxable income, some of which expire beginning in 2015.

The realization of our net deferred tax assets is dependent on our ability to generate taxable income in future periods. At December 31, 2011 and December 31, 2010, we have recorded a valuation allowance in the amount of $16.7 million and $20.5 million, respectively, related to state and foreign NOL carryforwards.

Unremitted foreign earnings permanently reinvested abroad upon which deferred income taxes have not been provided aggregated approximately $84.7 million and $67.9 million at December 31, 2011 and 2010, respectively. We have the ability and intent to leave these foreign earnings permanently reinvested abroad.

We operate in a foreign tax jurisdiction which has granted tax holidays, which will terminate in 2012. The current tax benefit in 2011 and 2010 attributable to these holidays was $0.2 million and $0.4 million.

We file an income tax return in the U.S. federal jurisdiction, and various state and foreign jurisdictions. We are no longer subject to income tax examinations for substantially all tax jurisdictions for years prior to 1999.

A reconciliation of the beginning and ending provision for uncertain tax positions is as follows:

	2011			2010		2009
	(In thousands)
Balance at January 1	$	1,568		$	750	$	750
(Reductions) additions for tax positions of prior years		(350	)		818		—
Balance at December 31	$	1,218		$	1,568	$	750

The provision for uncertain tax positions, if recognized, would affect the annual effective tax rate. The Company recognizes accrued interest and penalties related to uncertain tax positions in operating expenses.