Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of income tax expense

	Federal			State			Total
	(in thousands)
December 31, 2012
Current	$	175		$	37		$	212
Deferred	707			242			949
Total 2012	$	882		$	279		$	1,161
December 31, 2011
Current	$	1,373		$	(331	)	$	1,042
Deferred	9,783			(1,448		)	8,335
Total 2011	$	11,156		$	(1,779	)	$	9,377
December 31, 2010
Current	$	(458	)	$	321		$	(137	)
Deferred	7,609			158			7,767
Total 2010	$	7,151		$	479		$	7,630

Schedule of reconciliation of the federal income tax expense at the statutory rate to the effective income tax expense

	Years Ended December 31,
	2012				2011				2010
	(in thousands and % of pre-tax income)
	$		%		$		%		$		%
Statutory federal income tax expense	916		34.0		8,147		34.0		6,690		34.0
State taxes, net of federal benefit	185		6.9		(38	)	(0.2	)	713		3.7
State income tax apportionment adjustment	—		—		(1,137	)	(4.7	)	(396	)	(2.0	)
Extraterritorial income exclusion	—		—		(7	)	—		(101	)	(0.5	)
Tax consequesnces of the sale of engines to WMES	(46	)	(1.7	)	1,214		5.1		—		—
Uncertain tax positions	97		3.6		195		0.8		113		0.6
Permanent differences-162(m)	385		14.3		737		3.1		406		2.1
Permanent differences and other	(376	)	(14.1	)	266		1.0		205		0.9
Effective income tax expense	1,161		43.0		9,377		39.1		7,630		38.8

Summary of activity related to the Company's unrecognized tax benefits

	(in thousands)
Balance as of December 31, 2010	$	113
Increases related to current year tax positions	195
Balance as of December 31, 2011	308
Increases related to current year tax positions	98
Balance as of December 31, 2012	$	406

Schedule of tax effects of temporary differences of the deferred tax assets and liabilities

	As of December 31,
	2012			2011
	(in thousands)
Deferred tax assets:
Unearned lease revenue	$	1,550		$	1,274
State taxes	706			603
Reserves and allowances	1,596			1,595
Other accruals	962			1,795
Alternative minimum tax credit	542			527
Net operating loss carry forward	32,470			21,805
Charitable contributions	18			16
Total deferred tax assets	37,844			27,615
Deferred tax liabilities:
Depreciation and impairment on aircraft engines and equipment	(124,292		)	(113,956		)
Other deferred tax liabilities	(4,451		)	(3,612		)
Net deferred tax liabilities	(128,743		)	(117,568		)
Other comprehensive income, deferred tax asset	651			5,247
Net deferred tax liabilities	$	(90,248	)	$	(84,706	)