Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

(Loss) income before taxes is summarized as follows:

	U.S.			Foreign
Year ended December 31,	Operations			Operations			Total
	(in thousands)
2012	$	(271,683	)	$	3,841		$	(267,842	)
2011	$	133,501		$	3,546		$	137,047
2010	$	159,474		$	(6	)	$	159,468

(Benefit) Provision for Income Taxes

The (benefit) provision for income taxes is as follows:

	Year ended December 31,
	2012			2011			2010
	(in thousands)
Current expense:
Federal	$	19,573		$	30,848		$	49,873
State		3,508			6,303			9,528
Foreign		1,542			1,325			175
Total current		24,623			38,476			59,576

Deferred (benefit) expense:
Federal		(28,157	)		16,351			(2,464	)
State		1,104			(3,718	)		(983	)
Foreign		(12	)		(210	)		(161	)
Total deferred		(27,065	)		12,423			(3,608	)
Total (benefit) provision	$	(2,442	)	$	50,899		$	55,968

Reconciliation of (Benefit) Provision for Income Taxes

The table is a reconciliation of the Company's provision (benefit) for income taxes at the statutory rates to the provision (benefit) for income taxes at the Company's effective rate.

	2012						2011					2010
	Amount			Rate			Amount		Rate			Amount			Rate
	(dollars in thousands)
Federal income expense (benefit) at statutory tax rate		(93,745	)		35.0	%	$	47,963		35.0	%	$	55,814			35.0	%
State income taxes, net of federal tax benefit		3,214			(1.2	)		2,529		1.8			5,060			3.2
Officers' compensation		1,473			(0.6	)		224		0.2			495			0.3
Goodwill Impairment		89,191			(33.3	)		-		-			-			-
Other		(2,575)			1.0	%		183		0.1			(5,401	)		(3.4	)
(Benefit) provision for income taxes	$	(2,442	)		0.9	%	$	50,899		37.1	%	$	55,968			35.1	%

Significant Components of Deferred Tax Assets and Liabilities

The following is a summary of the significant components of the deferred tax assets and liabilities:

	December 31,
	2012			2011
	(in thousands)
Deferred Tax Assets
Timing of expense recognition	$	28,448		$	39,830
Net operating losses		5,517			5,440
Other, net		8,763			1,219
Deferred tax assets		42,728			46,489
Valuation Allowance		(2,817	)		-
Net deferred tax assets		39,911			46,489

Deferred Tax Liabilities
Intangible assets, due primarily to purchase accounting		(26,768	)		(73,020	)
Fixed assets, due primarily to purchase accounting		(76,095	)		(66,406	)
Construction contract accounting		(5,613	)		(4,910	)
Joint ventures - construction		(7,038	)		(4,276	)
Other		(390	)		38
Deferred tax liabilities		(115,904	)		(148,574	)

Net deferred tax liability	$	(75,993	)	$	(102,085	)

The net deferred tax liability is classified in the Consolidated Balance Sheets based on when the future benefit (expense) is expected to be realized as follows:

	December 31,
	2012			2011
	(in thousands)
Current deferred tax asset	$	10,071		$	-
Long-Term deferred tax asset		29,840			-
Current deferred tax liability		(6,004	)		(4,164	)
Long-term deferred tax liability		(109,900	)		(97,921	)
Net deferred tax liability		(75,993	)		(102,085	)

Reconciliation of Gross Unrecognized Tax Benefit

A reconciliation of the beginning and ending amount of the gross unrecognized tax benefit is as follows (in thousands):

Gross unrecognized tax benefit balance at January 1, 2010:	$	1,308
Add:
Additions based on tax positions related to current year		-
Additions/reductions for tax positions of prior years		56
Less:
Reductions for tax positions of prior years (expiration of statute of limitations)		(214	)
Gross unrecognized tax benefit balance at December 31, 2010:	$	1,150

Gross unrecognized tax benefit balance at January 1, 2011:	$	1,150
Add:
Additions based on tax positions related to current year	$	875
Additions/reductions for tax positions of prior years		47
Less:
Reductions based on tax positions of prior years (expiration of statute of limitations)		(29	)
Gross unrecognized tax benefit balance at December 31, 2011:	$	2,043

Gross unrecognized tax benefit balance at January 1, 2012:	$	2,043
Add:
Additions based on tax positions related to current year		1,281
Additions/reductions for tax positions of prior years		1,857
Less:
Reductions for tax positions of prior years (expiration of statute of limitations)		(1,158	)
Gross unrecognized tax benefit balance at December 31, 2012:	$	4,023