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Income Taxes
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6 Months Ended |
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Jun. 30, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
The Company files a consolidated federal income tax return and certain combined state and local income tax returns with its subsidiaries. The Company's current tax year ends on December 31st. Income tax expense was $767 and $616 for the three months ended June 30, 2014 and 2013, respectively. Income tax expense includes the tax effect of goodwill, which is amortized for income tax purposes, of $293 and $235 for the three months ended June 30, 2014 and 2013, respectively. The remainder of the tax provision principally represents federal alternative minimum tax and state and local income taxes for the 2014 period and state and local taxes for the 2013 period. 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 $1,360 and $1,139 for the six months ended June 30, 2014 and 2013, respectively. Income tax expense includes the tax effect of goodwill, which is amortized for income tax purposes, of $587 and $587 for the six months ended June 30, 2014 and 2013, respectively. The remainder of the tax provision principally represents federal alternative minimum tax (2014) and state and local income taxes (for 2014 and 2013). 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 rates differ from the statutory income tax rates for the 2014 and 2013 periods, primarily due to a tax provision related to amortization of goodwill for tax purposes and utilization of net operating loss carryforwards for which valuation allowances had previously been provided. The Company accounts for income taxes under the asset and liability method, which requires the recognition of tax benefits or expense on the temporary differences between the tax basis and financial statement basis of its assets and liabilities as well as tax loss carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled.
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