In comparing 2nd qtr this year to last year taxes have gone up $4M or approx 30% while income before taxes went up 28%. In essence the tax rate went up slightly. CXW did have tax carryforwards which have now expired which means that the actual tax payments have increased dramatically. This will decrease operating cash flow. Now CXW is paying taxes like most other profitable companies.
CXW has been accruing tax expense each quarter but rather than crediting accrued taxes payable they were hitting deferred taxes.
Basically earnings and earnings per share will still show the steady increases from improved operations while cash flow will decrease as a result of tax credits having expired