5.	INCOME TAXES

For the three and six months ended June 30, 2011 and 2010, all of the Company's income before income taxes is derived primarily from activities within the United States as well as the Company's activities in the United Kingdom. The Company's estimated annual effective income tax rates are used to allocate expected annual income tax expense to interim periods. The rates are the ratio of estimated annual income tax expense to estimated annual income before income taxes by taxing jurisdiction, except for discrete items, which are significant, unusual or infrequent items for which income taxes are computed and recorded in the interim period in which the specific transaction occurs. The estimated annual effective income tax rates is applied to the year-to-date income before income taxes by taxing jurisdiction to determine the income tax expense allocated to the interim period. The Company updates its estimated annual effective income tax rate at the end of each quarterly period considering the geographic mix of income based on the tax jurisdictions in which the Company operates. Actual results that are different from the assumptions used in estimating the annual effective income tax rate, will impact future income tax expense. Actual income tax expense differs from income tax expense computed by applying the U.S. federal statutory corporate rate of 35% to income before income taxes as follows:

		0000000		0000000		0000000		0000000
	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In thousands)
Income tax expense at the statutory rate	$	3,971	$	735	$	4,599	$	12,087
State income taxes, net of federal benefit		127		14		1,702		1,348
Foreign income taxes		(175)				(175)
Capital loss associated with investment in Pinnacle for which no income tax benefit was recognized in prior years		-				(1,135)		-
Other, net		(321)		(434)		(329)		(423)

Income tax expense	$	3,602	$	315	$	4,662	$	13,012

As of June 30, 2011, the Company had income tax net operating loss ("NOL") carryforwards of approximately $181.8 million which expire between 2019 and 2031 if not utilized in earlier periods. The realization of the deferred tax assets related to NOL carryforwards is dependent on the Company's ability to generate taxable income in the future. The Company believes it will be able to generate sufficient taxable income in the NOL carry forward period. As such, the Company believes that it is more likely than not that its deferred tax assets will be fully realized.

At June 30, 2011, the Company had no material uncertain tax positions and the tax years since 1999 remain open to review by federal and various state tax jurisdictions.