Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Text Block]

5.  Income Taxes

The components of the provision for income taxes consisted of the following:

(In thousands)	2011		2010			2009
Current:
Federal	$	6,524	$	2,747		$	6,084
State		1,362		1,645			829
		7,886		4,392			6,913
Deferred:
Federal		9,837		10,761			4,472
State		239		(211	)		1,091
		10,076		10,550			5,563
Total provision	$	17,962	$	14,942		$	12,476

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

	2011			2010			2009
Statutory federal income tax rate		35	%		35	%		35	%
Per diem and other non-deductible expenses		6			6			5
Increase in taxes arising from state income taxes, net of federal income tax benefit		3			3			4
Other		(1	)		(1	)		(1	)
Effective tax rate		43	%		43	%		43	%

As of December 31, the net deferred tax liability consisted of the following:

(In thousands)	2011		2010
Deferred tax assets:
Reserves and accrued liabilities	$	5,326	$	7,097
Other		2,274		1,684
		7,600		8,781
Deferred tax liabilities:
Depreciation		106,113		97,510
Prepaid expenses		2,584		2,292
		108,697		99,802
Net deferred tax liability	$	101,097	$	91,021

We have not provided a valuation allowance against deferred tax assets at December 31, 2011 or 2010.  We believe the deferred tax assets will be realized principally through future reversals of existing taxable temporary differences (deferred tax liabilities) and future taxable income.

Our reserves for unrecognized tax benefits were $288,000 as of December 31, 2011 and $215,000 as of December 31, 2010.  The $73,000 increase in the amount reserved in 2011 relates to current period tax positions.  The amount reserved as of December 31, 2010 was added in 2007 through 2010 relating to current period tax positions.  If recognized, $187,000 of the unrecognized tax benefits as of December 31, 2011 would impact our effective tax rate.  No potential interest or penalties related to unrecognized tax benefits were recognized in our financial statements as of December 31, 2011.  We do not expect the reserves for unrecognized tax benefits to change significantly within the next twelve months.

The federal statute of limitations remains open for 2008 and forward.  We file tax returns in numerous state jurisdictions with varying statutes of limitations.