(5) Income Taxes
Income tax expense for the years ended December 31 is as follows:
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|
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|
|
|
|
|
|
|
|
|
2011 |
|
2010 |
|
2009 |
|
Current income tax expense |
|
$ |
4,398 |
|
$ |
3,945 |
|
$ |
2,792 |
|
Deferred income tax expense |
|
|
3,560 |
|
|
3,073 |
|
|
1,682 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
$ |
7,958 |
|
$ |
7,018 |
|
$ |
4,474 |
|
|
|
|
|
|
|
|
|
A reconciliation of income taxes computed at the federal statutory rate to income tax expense for the years ended December 31 is as follows:
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|
|
2011 |
|
2010 |
|
2009 |
|
|
|
Amount |
|
Percent of
pretax
income |
|
Amount |
|
Percent of
pretax
income |
|
Amount |
|
Percent of
pretax
income |
|
Income taxes computed at the federal statutory rate |
|
$ |
10,550 |
|
|
35.0 |
% |
$ |
8,770 |
|
|
35.0 |
% |
$ |
6,350 |
|
|
35.0 |
% |
(Reduction) increase in taxes resulting from: |
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|
|
|
|
|
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|
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|
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|
|
|
|
Statutory depletion in excess of cost depletion |
|
|
(2,366 |
) |
|
(7.9 |
) |
|
(1,584 |
) |
|
(6.3 |
) |
|
(1,949 |
) |
|
(10.7 |
) |
Manufacturing deduction |
|
|
(308 |
) |
|
(1.0 |
) |
|
(397 |
) |
|
(1.6 |
) |
|
(98 |
) |
|
(0.5 |
) |
State income taxes, net of federal income tax benefit |
|
|
24 |
|
|
0.1 |
|
|
155 |
|
|
0.6 |
|
|
180 |
|
|
1.0 |
|
Other |
|
|
58 |
|
|
0.2 |
|
|
74 |
|
|
0.3 |
|
|
(9 |
) |
|
(0.1 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
$ |
7,958 |
|
|
26.4 |
% |
$ |
7,018 |
|
|
28.0 |
% |
$ |
4,474 |
|
|
24.7 |
% |
|
|
|
|
|
|
|
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|
Generally, US GAAP requires deferred tax assets to be reduced by a valuation allowance if, based on the weight of available evidence, it is "more likely than not" that some portion or all of the deferred tax assets will not be realized. US GAAP requires an assessment of all available evidence, both positive and negative, to determine the amount of any required valuation allowance.
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|
December 31,
2011 |
|
December 31,
2010 |
|
Deferred tax liabilities |
|
|
|
|
|
|
|
Lime and limestone property, plant and equipment |
|
$ |
17,625 |
|
$ |
14,968 |
|
Natural gas interests drilling costs and equipment |
|
|
4,247 |
|
|
4,339 |
|
Other |
|
|
316 |
|
|
323 |
|
|
|
|
|
|
|
|
|
|
22,188 |
|
|
19,630 |
|
Deferred tax assets |
|
|
|
|
|
|
|
Alternative minimum tax credit carry forwards |
|
|
(7,364 |
) |
|
(8,264 |
) |
Minimum pension liability |
|
|
(448 |
) |
|
(363 |
) |
Fair value liability of interest rate hedges |
|
|
(1,268 |
) |
|
(1,357 |
) |
Other |
|
|
(611 |
) |
|
(713 |
) |
|
|
|
|
|
|
|
|
|
(9,691 |
) |
|
(10,697 |
) |
|
|
|
|
|
|
Deferred tax liabilities, net |
|
$ |
(12,497 |
) |
$ |
8,933 |
|
|
|
|
|
|
|
Current tax receivables, net |
|
$ |
241 |
|
$ |
109 |
|
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|
The Company had no federal net operating loss carry forwards at December 31, 2011. At December 31, 2011, the Company had determined that, because of its recent income history and expectations of income in the future, its deferred tax assets were fully realizable. The Company's federal income tax returns for the year ended December 31, 2008 and subsequent years remain subject to examination. The Company's income tax returns in certain state income tax jurisdictions remain subject to examination for various periods for the year ended December 31, 2008 and subsequent years. The Company treats interest and penalties on income tax liabilities as income taxes. |