Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

17.  INCOME TAXES

The following table summarizes the provision for income taxes for continuing operations for the three and six months ended June 30 and the applicable effective tax rates (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2011		2010
Provision for income taxes	$	5,184	$	2,552	$	6,534	$	630
Effective tax rate		41.7%		49.6%		42.9%		75.8%

The Company's provision for income taxes in interim periods is computed by applying forecasted annual effective tax rates to income or loss before income taxes for the interim period.  In addition, non-recurring or discrete items, including interest on prior year tax liabilities, are recorded during the period in which they occur.  To the extent that actual income or loss before taxes for the full year differs from the forecast estimates applied at the end of the most recent interim period, the actual tax rate recognized for the year ending December 31, 2011 could be materially different from the forecasted rate used for the six months ended June 30, 2011.

The provision of income taxes resulted in an effective tax rate of 41.7% and 42.9% for the three and six months ended June 30, 2011, respectively.  The effective tax rate for the interim periods of 2011 exceeded the U.S. federal statutory tax rate of 35% due to the recognition of non-deductible permanent differences and state taxes.

The provision for income taxes for continuing operations for the three and six months ended June 30, 2010 resulted in an effective tax rate of 49.6% and 75.8%, respectively.  The effective tax rate was greater than the U.S. federal statutory tax rate of 35% during these interim periods due to the impact of state taxes, and non-deductible permanent items.  As a result of forecasted earnings being near break-even at the interim periods of 2010, the effective tax rate varied greatly from the statutory rate.