|
Income Taxes
|
9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Sep. 30, 2012
|
|||||||
| Income Taxes |
Income tax expense was $408 and $284 for the three months ended September 30, 2012 and 2011, respectively. The primary components of income tax expense were the tax effects of goodwill, which is amortized for income tax purposes, of $295 and $228 for the three months ended September 30, 2012 and 2011, respectively. The remainder of the tax provision principally represents state and local income taxes for the 2012 and 2011 periods presented. The tax rate for the periods presented represents the actual effective tax rate for such periods, which the Company believes represents the best estimate of the annual effective tax rate.
Income tax expense was $1,060 and $951 for the nine months ended September 30, 2012, and 2011, respectively. The primary components of income tax expense were the tax effects of goodwill, which is amortized for income tax purposes, of $692 and $636 for the nine months ended September 30, 2012 and 2011, respectively. The remainder of the tax provision principally represents state and local income taxes for the 2012 and 2011 periods presented as well as a provision for federal alternative minimum taxes for the 2011 periods presented. The tax rate for the periods presented represents the actual effective tax rate for such periods, which the Company believes represents the best estimate of the annual effective tax rate.
The effective tax rate differs from the statutory income tax rate for the 2012 periods primarily due to the change in fair value of contingent consideration not subject to income tax and the increase in the valuation allowance against the net deferred tax asset (without regard to deferred tax liabilities related to indefinite-lived intangibles) related to the tax benefit of the pre-tax loss as adjusted for permanent differences. The effective tax rate differs from the statutory income tax rate for the 2011 periods primarily due to utilization of net operating loss carryforwards to offset taxable income. |