Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Domestic and foreign income taxes
The components of domestic and foreign income before income taxes as of December 31, 2012, 2011 and 2010, are as follows: 
 
2012
 
2011
 
2010
 
 
 
(Restated)
 
(Restated)
Domestic
$
29,400,084

 
$
43,255,574

 
$
35,642,365

Foreign
(4,793,198
)
 
924,531

 
4,056,936

 
$
24,606,886

 
$
44,180,105

 
$
39,699,301

Income tax provision
The income tax provision for the years ended December 31, 2012, 2011 and 2010 is as follows: 
 
2012
 
2011
 
2010
 
 
 
(Restated)
 
(Restated)
Current:
 

 
 

 
 

   Federal
$
9,135,447

 
$
(10,073,322
)
 
$
10,357,326

   State
732,514

 
(273,221
)
 
1,588,801

   Foreign
177,713

 
(277,157
)
 
280,064

 
10,045,674

 
(10,623,700
)
 
12,226,191

Deferred:
 

 
 

 
 

   Federal
(2,586,080
)
 
18,724,198

 
(741,160
)
   State
85,387

 
1,826,239

 
(368,604
)
   Foreign
(1,298,228
)
 
840,435

 
1,069,208

 
(3,798,921
)
 
21,390,872

 
(40,556
)
 
$
6,246,753

 
$
10,767,172

 
$
12,185,635

Deferred income tax assets and liabilites
Deferred income tax assets and liabilities at December 31, 2012 and 2011 consist of the following:
 
2012
 
2011
Deferred income tax assets:
 

 
 

   Compensation accruals
$
2,151,789

 
$
1,710,319

   Reserves
2,603,512

 
2,296,691

   Other accruals
1,302,684

 
541,408

   Net operating losses
267,996

 
334,033

   Interest rate swaps
3,125,847

 
2,601,154

   Credits
1,225,197

 
3,434,973

   Deferred revenue
1,336,827

 
—

Gross deferred income tax assets
12,013,852

 
10,918,578

Valuation allowance
(2,827,444
)
 
(2,869,637
)
Total deferred income tax assets
$
9,186,408

 
$
8,048,941

Deferred income tax liabilities:
 

 
 

   Depreciation
$
(26,839,863
)
 
$
(27,787,503
)
   Contract refinancing
(725,328
)
 
(1,029,451
)
   Canada
(949,850
)
 
(2,248,078
)
   Acquisition accounting
(368,878
)
 
(480,341
)
Total deferred income tax liabilities
(28,883,919
)
 
(31,545,373
)
Deferred income tax assets and liabilities, net
$
(19,697,511
)
 
$
(23,496,432
)
Reconciliation of effective tax rates
The following is a reconciliation of the effective tax rates for 2012, 2011 and 2010:
 
2012
 
2011
 
2010
 
 
 
(Restated)
 
(Restated)
Income before income tax
$
24,606,886

 
$
44,180,105

 
$
39,699,301

 
 
 
 
 
 
Federal statutory tax expense
$
8,612,410

 
$
15,463,037

 
$
13,894,755

State income taxes, net of federal benefit
817,901

 
1,553,018

 
1,220,197

Net state impact of deferred rate change
—

 
(259,339
)
 
—

Non deductible expenses
2,611,576

 
115,629

 
99,128

Stock-based compensation expense
336,564

 
240,557

 
12,132

Energy efficiency preferences
(7,032,798
)
 
(6,247,283
)
 
(4,246,589
)
Foreign items and rate differential
557,104

 
239,692

 
(70,656
)
Miscellaneous
343,996

 
(338,139
)
 
1,276,668

 
$
6,246,753

 
$
10,767,172

 
$
12,185,635

 
 
2012
 
2011
 
2010
 
 
 
 
(Restated)
 
(Restated)
Effective tax rate:
 
 
 
 

 
 

Federal statutory rate expense
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, net of federal benefit
 
3.3
 %
 
3.5
 %
 
3.1
 %
Net state impact of deferred rate change
 
—
 %
 
(0.6
)%
 
—
 %
Non deductible expenses
 
10.6
 %
 
0.3
 %
 
0.3
 %
Stock-based compensation expense
 
1.4
 %
 
0.5
 %
 
—
 %
Energy efficiency preferences
 
(28.6
)%
 
(14.1
)%
 
(10.7
)%
Foreign items and rate differential
 
2.3
 %
 
0.5
 %
 
(0.2
)%
Miscellaneous
 
1.4
 %
 
(0.7
)%
 
3.2
 %
 
 
25.4
 %
 
24.4
 %
 
30.7
 %
Unrecognized tax benefits
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2012 and 2011 is as follows:
 
 
2012
 
2011
Balance, beginning of year
 
$
1,400,000

 
$
8,100,000

Additions for prior year tax positions
 
3,500,000

 
100,000

Settlements paid to tax authorities
 
—

 
—

Reductions of prior year tax positions
 
—

 
(6,800,000
)
Balance, end of year
 
$
4,900,000

 
$
1,400,000