|
INCOME TAXES (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Consolidated Provision (Benefit) for Income Taxes from Continuing Operations |
The
consolidated provision (benefit) for income taxes from continuing
operations for Salem consisted of the following:
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|
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|
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|
|
|
|
|
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| |
|
December 31, |
|
| |
2010 |
|
|
2011 |
|
|
2012 |
|
| |
(Dollars in
thousands) |
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
(4 |
) |
|
$ |
(8 |
) |
|
$ |
8 |
|
|
State
|
|
|
286 |
|
|
|
282 |
|
|
|
198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
282 |
|
|
|
274 |
|
|
|
206 |
|
|
|
|
|
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|
|
|
|
|
|
|
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Deferred:
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|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
1,887 |
|
|
|
4,425 |
|
|
|
3,649 |
|
|
State
|
|
|
526 |
|
|
|
1,411 |
|
|
|
(3,702 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,413 |
|
|
|
5,836 |
|
|
|
(53 |
) |
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|
|
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Provision for (benefit
from) income taxes
|
|
$ |
2,695 |
|
|
$ |
6,110 |
|
|
$ |
153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| Consolidated Deferred Tax Asset and Liability |
The
consolidated deferred tax asset and liability consisted of the
following:
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|
|
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|
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| |
|
December 31, |
|
| |
|
2011 |
|
|
2012 |
|
| |
|
(Dollars in
thousands) |
|
|
Deferred tax
assets:
|
|
|
|
|
|
|
|
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|
Financial statement
accruals not currently deductible
|
|
$ |
6,303 |
|
|
$ |
6,146 |
|
|
Net operating loss, AMT
credit and other carryforwards
|
|
|
54,327 |
|
|
|
58,702 |
|
|
State taxes
|
|
|
100 |
|
|
|
103 |
|
|
Other
|
|
|
2,864 |
|
|
|
3,014 |
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax
assets
|
|
|
63,594 |
|
|
|
67,965 |
|
|
Valuation allowance for
deferred tax assets
|
|
|
(2,798 |
) |
|
|
(2,913 |
) |
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|
|
|
|
|
|
|
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|
Net deferred tax
assets
|
|
$ |
60,796 |
|
|
$ |
65,052 |
|
|
|
|
|
|
|
|
|
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Deferred tax
liabilities:
|
|
|
|
|
|
|
|
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Excess of net book value of
property, plant, equipment and software for financial reporting
purposes over tax basis
|
|
$ |
8,794 |
|
|
$ |
5,032 |
|
|
Excess of net book value of
intangible assets for financial reporting purposes over tax
basis
|
|
|
89,824 |
|
|
|
100,040 |
|
|
Unrecognized tax
benefits
|
|
|
3,852 |
|
|
|
1,325 |
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax
liabilities
|
|
|
102,470 |
|
|
|
106,397 |
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax
liabilities
|
|
$ |
(41,674 |
) |
|
$ |
(41,345 |
) |
|
|
|
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|
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|
| Reconciliation of Net Deferred Tax Liabilities to Financial Instrument |
The following
table reconciles the above net deferred tax liabilities to the
financial statements:
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| |
|
December 31, |
|
| |
|
2011 |
|
|
2012 |
|
| |
|
(Dollars in thousands) |
|
|
Deferred income tax asset
per balance sheet
|
|
$ |
6,403 |
|
|
$ |
6,248 |
|
|
Deferred income tax
liability per balance sheet
|
|
|
(48,077 |
) |
|
|
(47,593 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
(41,674 |
) |
|
$ |
(41,345 |
) |
|
|
|
|
|
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|
| Reconciliation of Statutory Federal Income Tax Rate to Provision for Income Tax |
A
reconciliation of the statutory federal income tax rate to the
provision for income tax is as follows:
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Year Ended
December 31, |
|
| |
|
2010 |
|
|
2011 |
|
|
2012 |
|
| |
|
(Dollars in
thousands) |
|
|
Statutory federal income
tax rate (at 35%)
|
|
$ |
1,638 |
|
|
$ |
4,364 |
|
|
$ |
1,637 |
|
|
Effect of state taxes, net
of federal
|
|
|
525 |
|
|
|
1,102 |
|
|
|
(2,278 |
) |
|
Permanent items
|
|
|
174 |
|
|
|
696 |
|
|
|
788 |
|
|
ISO benefit
|
|
|
338 |
|
|
|
— |
|
|
|
— |
|
|
Other, net
|
|
|
20 |
|
|
|
(52 |
) |
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|
6 |
|
|
|
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|
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|
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Provision for income
taxes
|
|
$ |
2,695 |
|
|
$ |
6,110 |
|
|
$ |
153 |
|
|
|
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