Income Taxes
 9 Months Ended
Sep. 30, 2012
Income Taxes

10. Income Taxes

The following table provides a reconciliation of the federal income tax rate to the Company’s effective income tax rate for the third quarters and nine months ended September 30, 2012 and 2011.

 

     Quarter Ended     Nine Months Ended  
     September 30     September 30  
             2012                     2011                     2012                     2011          

Federal income tax rate

      35%        35%        35%        35%   

Tax credits, net of equity adjustment

      1        5        -        1   

Permanent differences

      (2 )      (1 )      (1 )      (1 ) 

Other

      -        1        -        1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Effective income tax rate

      34%        40%        34%        36%   
  

 

 

    

 

 

    

 

 

    

 

 

  

The Company did not have any uncertain tax positions at September 30, 2012.

At September 30, 2012, the Company had a $2.8 million current tax liability and a $85.6 million deferred tax liability, compared to a $0.3 million current tax recoverable and a $68.8 million deferred tax liability at December 31, 2011.