Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

5.  Income Taxes

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

(In thousands)	2012			2011		2010
Current:
Federal	$	12,728		$	6,524	$	2,747
State		587			1,362		1,645
		13,315			7,886		4,392
Deferred:
Federal		5,542			9,837		10,761
State		(720	)		239		(211	)
		4,822			10,076		10,550
Total provision	$	18,137		$	17,962	$	14,942

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

	2012			2011			2010
Statutory federal income tax rate		35	%		35	%		35	%
Per diem and other non-deductible expenses		5			6			6
Increase in taxes arising from state income taxes, net of federal income tax benefit		-			3			3
Other		-			(1	)		(1	)
Effective tax rate		40	%		43	%		43	%

Our effective income tax rate decreased to 39.9% in 2012 from 42.5% in 2011 primarily due to a decrease to our deferred income tax liability as a result of a change in income apportionment for several states.

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

(In thousands)	2012		2011
Deferred tax assets:
Reserves and accrued liabilities	$	5,687	$	5,326
Other		2,714		2,274
		8,401		7,600
Deferred tax liabilities:
Depreciation		111,794		106,113
Prepaid expenses		2,526		2,584
		114,320		108,697
Net deferred tax liability	$	105,919	$	101,097

We have not provided a valuation allowance against deferred tax assets at December 31, 2012 or 2011. 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 $281,000 as of December 31, 2012 and $288,000 as of December 31, 2011.  The $7,000 decrease in the amount reserved in 2012 relates to current period tax positions offset by the removal of the reserve relating to 2007.  The amount reserved as of December 31, 2011 was added in 2007 through 2011 relating to current period tax positions.  If recognized, $183,000 of the unrecognized tax benefits as of December 31, 2012 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, 2012.  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 2009 and forward.  We file tax returns in numerous state jurisdictions with varying statutes of limitations.