Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

The provision for income taxes is comprised of the following (in thousands):

	For the Years Ended December 31,
	2011		2010		2009
Federal:
Current	$	45,765	$	51,717	$	49,416
Deferred		17,330		11,536		20,910
		63,095		63,253		70,326
State:
Current		10,710		12,892		10,564
Deferred		2,222		1,957		3,690
		12,932		14,849		14,254
	$	76,027	$	78,102	$	84,580

The net deferred income tax assets (liabilities) at December 31, 2011 and 2010 are comprised of the following (in thousands):

	December 31,
	2011			2010
Current deferred income tax assets:
Accounts receivable	$	5,362		$	4,996
State taxes		4,469			5,329
Other liabilities and reserves		8,112			6,528
Other assets		7,046			904
Inventory		1,321			1,262
Total current deferred income tax assets	$	26,310		$	19,019
Non-current deferred income tax (liabilities) assets:
Net operating loss carryforwards	$	29,362		$	31,377
Write-down of assets		1,222			1,216
Start-up costs		335			333
Other assets		31,306			25,826
Intangible assets		(128,947	)		(113,685	)
Property and equipment		(27,131	)		(19,105	)
Unrealized loss on investments		1,961			1,950
Share-based compensation		6,416			6,115
Valuation allowance		(15,753	)		(16,158	)
Total non-current deferred income tax liabilities, net	$	(101,229	)	$	(82,131	)

At December 31, 2011, we had Federal net operating loss (“NOL”) carryforwards of approximately $71.5 million, comprised mainly of acquired NOL carryforwards. These NOLs expire at various dates through 2029. The utilization of NOL carryforwards to reduce taxable income is subject to certain statutory limitations. Events that cause such a limitation include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. We believe that some of our acquisitions caused such a change of ownership and, accordingly, utilization of the NOL carryforwards may be limited in future years. Accordingly, the valuation allowance is principally related to subsidiaries’ NOL carryforwards as well as certain investment-related expenditures where the realization of the benefits is not more likely than not to occur. We believe that it is more likely than not that the benefit from the remaining net deferred tax assets will be realizable.

Our effective tax rate was 44.3%, 41.5% and 39.2% in 2011, 2010 and 2009, respectively.

A reconciliation of the provision for income taxes to the amount computed at the Federal statutory rate is as follows:

	For Years Ended December 31,
	2011			2010			2009
Federal income tax at statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal benefit		4.9			6.0			4.1
Goodwill impairment		4.3			—			—
Miscellaneous		0.1			0.5			0.1
		44.3	%		41.5	%		39.2	%

The provision for 2010 income taxes includes tax expense of $3.5 million, related to additional state tax payments required as a result of a tax settlement reached.

We are regularly audited by federal and state tax authorities. Our 2010, 2009 and 2008 taxable years are currently open for IRS audit. The previous four years are generally open for state audit.