Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

(5) Income Taxes

        Income tax expense for the years ended December 31 is as follows:

	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:

	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:
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	)
Income tax expense	$	7,958			26.4	%	$	7,018			28.0	%	$	4,474			24.7	%

        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.

• A summary of the Company's deferred tax liabilities and assets is as follows:

	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

        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.