INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

6.           INCOME TAXES

Deferred tax assets and liabilities are determined based on the differences between the financial and tax basis of existing assets and liabilities using the currently enacted tax rates in effect for the year in which the differences are expected to reverse.

The provision for income taxes on income consisted of the following in 2011, 2010 and 2009 (in thousands):

	2011			2010		2009
Current:
Federal	$	12,314		$	300	$	—
State		1,428			634		235
Foreign		1,584			641		1,963
		15,326			1,575		2,198
Deferred:
Federal		(245	)		5,874		1,444
State		(27	)		68		302
Foreign		66			66		(11	)
		(206	)		6,008		1,735
	$	15,120		$	7,583	$	3,933

The principal differences between the federal statutory tax rate and the income tax expense in 2011, 2010 and 2009:

	2011			2010			2009
Federal statutory tax rate		35.0	%		34.4	%		34.3	%
State taxes, net of federal tax benefit		4.0	%		2.8	%		3.2	%
Excess of foreign tax over US tax on foreign income		0.6	%		0.8	%		0.5	%
Other		0.1	%		1.3	%		1.5	%
Effective tax rate		39.7	%		39.3	%		39.5	%

Deferred income tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting and income tax reporting purposes. Temporary differences and carry forwards which give rise to deferred tax assets and liabilities at December 31, 2011 and 2010 are as follows (in thousands):

	2011		2010
Deferred tax assets:
Allowance for doubtful accounts	$	53	$	69
Accruals and reserves		4,024		3,287
Net operating loss carryforward		—		447
Other		1,067		1,415
Total deferred tax assets		5,144		5,218
Deferred tax liabilities:
Property, plant, and equipment		2,110		1,978
Total deferred tax liabilities		2,110		1,978
Net deferred tax asset	$	3,034	$	3,240

As of December 31, 2011, the Company has no federal or state net operating loss carryforwards.

At December 31, 2011 and 2010, the Company had no unrecognized tax positions.  The Company does not expect its unrecognized tax positions to change significantly in the next twelve months.  If unrecognized tax positions existed, the interest and penalties related to the unrecognized tax positions would be recorded as income tax expense in the consolidated statements of income.

The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions.  The Company’s tax years 2008 through 2010 remain open to examination for U.S. Federal income taxes.  With few exceptions, the Company is no longer subject to state or non-U.S. income tax examinations prior to 2008.