Contingencies:

6 Months Ended

Jun. 30, 2011

Contingencies:

Contingencies:

4.             Contingencies :

Current and potential litigation

In the normal course of business the Company is involved in other legal activities and claims. Because such matters are subject to many uncertainties and the outcomes are not predictable with assurance, the liability related to these legal actions and claims cannot be determined with certainty. Management does not believe that such claims and actions will have a material impact on the Company’s financial condition or results of operations.

Income taxes

In the normal course of business the Company takes positions on its tax returns that may be challenged by taxing authorities. The Company evaluates all uncertain tax positions to assess whether the position will more likely than not be sustained upon examination. If the Company determines that the tax position is more likely than not to be sustained, the Company records the amount of the benefit that is more likely than not to be realized when the tax position is settled. This liability, including accrued interest and penalties, is included in other long-term liabilities in the accompanying balance sheets and was $0.9 million as of December 31, 2010 and June 30, 2011. During the three and six months ended June 30, 2010 and June 30, 2011 the Company recognized approximately $15,000, $30,000, $20,000 and $40,000, respectively, in interest and penalties related to its uncertain tax positions. The Company does not expect the final resolution of tax examinations to have a material impact on the Company’s financial results in the next 12 months.

Incentive award plan

The Company granted restricted shares that are subject to certain performance conditions based upon the Company’s operating metrics for 2010 and 2011. The Company recorded approximately $0.3 million and $0.7 million respectively, of equity-based compensation expense related to the restricted shares subject to performance conditions for 2010 and 2011 in the three and six months ended June 30, 2011 since it was considered probable that the performance conditions for 2011 would be met and the performance conditions for 2010 were met.  There was no equity-based compensation expense related to restricted shares subject to performance conditions for the three and six months ended June 30, 2010.  In April 2011 the Company issued 48,720 restricted shares related to the 2010 performance conditions.