Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.8
Income Taxes
 9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
5.   Income Taxes

The Company is part of a consolidated federal income tax return and a combined unitary California tax return that is filed by MMC. The Company and MMC have a tax-sharing agreement whereby the Company provides for income taxes in its consolidated statements of income using an effective tax rate of 43.5%. The amount derived represents a receivable or obligation of the Company from (to) MMC that the Company generally settles on a current basis. In addition, all deferred tax assets and liabilities are recorded by MMC. As part of the IPO, the tax sharing agreement with MMC was terminated effective October 31, 2013. See Note 4 – Related-Party Transactions and Note 9 - Subsequent Events for additional information.

The provision for income taxes attributable to the Company consists of the following:

 

     Three Months
Ended
September 30,		      Nine Months
Ended
September 30,		  
     2013      2012      2013      2012  

Federal

    $ 4,910       $ 4,325       $ 11,425       $ 10,060   

State

      687         606         1,600         1,409   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 5,597       $ 4,931       $ 13,025       $ 11,469   
  

 

 

     

 

 

     

 

 

     

 

 

  

The provision (benefit) for income taxes for the three and nine months ended September 30, 2013 and 2012, differs from the amounts computed by applying the statutory federal corporate income tax rate of 35% to earnings before income taxes as a result of the following:

 

     Three Months
Ended
September 30,		     Nine Months
Ended
September 30,		  
     2013     2012     2013      2012  

Computed expected tax expense

    $ 4,504      $ 3,967      $ 10,480       $ 9,228   

State taxes (net of federal tax effect)

      630        555        1,467         1,292   

Permanent differences

      (15 )      (24 )      42         (17 ) 

Difference due to tax-sharing rate

      478        433        1,036         966   
  

 

 

    

 

 

    

 

 

     

 

 

  

Provision for income taxes

    $ 5,597      $ 4,931      $ 13,025       $ 11,469