Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

14. INCOME TAXES

The following table summarizes the provision for income taxes for continuing operations for the three months ended March 31 and the applicable effective tax rates (in thousands):

		2012			2011
Provision for income taxes	$	931		$	1,350
Effective tax rate		39.1	%		48.4	%

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, 2012 could be materially different from the forecasted rate used for the three months ended March 31, 2012.

The provision of income taxes resulted in an effective tax rate of 39.1% and 48.4% for the three months ended March 31, 2012 and 2011, respectively, which exceeded the U.S. federal statutory tax rate of 35%. These rates exceeded 35% due to the recognition of non-deductible permanent items and state taxes.

The effective tax rate was higher during the three months ended March 31, 2011 due to the recognition of the $885,000 charge related to surrendered equity compensation described in Note 10. As this was a permanent difference, no tax benefit was recognized to offset the charge.