|12 Months Ended
Dec. 31, 2012
|Income Tax Disclosure [Abstract]
The provision for income taxes reflected in the statements of comprehensive income is comprised of the following components:
Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of 35% to pre-tax income as a result of the following:
Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect. The net deferred tax asset and the temporary differences comprising that balance at December 31, 2012 and 2011 are as follows:
In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of the separate state net operating loss carry-forward of CCBG, the separate state net operating loss carry-forwards of an inactive subsidiary, and certain of the Banks separate state tax credit carry-forwards, will be realized. Accordingly, a valuation allowance for CCBGs separate state net operating loss carry-forward was recorded in 2008 and increased for CCBGs additional state operating loss carry-forward generated in 2009 through 2012. This valuation allowance at year-end 2012 was $1.0 million. In addition, a valuation allowance for the inactive subsidiarys separate state net operating loss carry-forwards and for certain of the Banks state tax credit carry-forwards totaled $0.2 million at year-end 2012. At year-end 2012, the Company had state loss and tax credit carry-forwards of approximately of $5 million, which expire at various dates from 2013 through 2032, and federal loss and tax credit carry-forwards of approximately $0.6 million, which begin to expire in 2015.
Changes in net deferred income tax assets were:
The Company had unrecognized tax benefits at December 31, 2012, 2011, and 2010 of $4.2 million, $4.6 million, and $4.8 million, respectively, of which $2.7 million would increase income from continuing operations, and thus impact the Companys effective tax rate, if ultimately recognized into income.
A reconciliation of the beginning and ending unrecognized tax benefit is as follows:
It is the Companys policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective federal or state income taxes accounts. The total amounts of interest and penalties recorded in the income statement income tax expense for the years ended December 31, 2012, 2011, and 2010 were $108,000, $(43,000), and $9,000, respectively. The amounts accrued for interest and penalties at December 31, 2012 and 2011 were $0.9 million and $1.1 million respectively.
The Company anticipates a significant decrease in the amount of unrecognized tax benefits in the next 12 months due to a lapse in the statute of limitations. The amount of the decrease is estimated to range from $0 to $1 million.
The Company and its subsidiaries file a consolidated U.S. federal income tax return, as well as file various returns in states where its banking offices are located. The Company is no longer subject to U.S. federal or state tax examinations for years before 2009.