Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

Income Taxes

NOTE 6—Income Taxes

The current and deferred income tax provisions are as follows:

	Years ended December 31,
	2012			2011			2010
Current:
Federal	$	3,034,000		$	3,266,000		$	3,825,000
State	943,000			934,000			1,011,000
	3,977,000			4,200,000			4,836,000
Deferred:
Federal	(174,000		)	(306,000		)	(133,000		)
State	(144,000		)	(83,000		)	48,000
	(318,000		)	(389,000		)	(85,000		)
Total income taxes	$	3,659,000		$	3,811,000		$	4,751,000

A reconciliation of the effective income tax rate with the applicable statutory federal income tax rate is as follows:

	Years ended December 31,
	2012		2011		2010
Federal tax at statutory rate	34.0	%	34.0	%	35.0	%
State taxes, net of federal benefit	5.8	%	5.8	%	5.7	%
Other	3.4	%	1.8	%	0.6	%
Effective income tax rate	43.2	%	41.6	%	41.3	%

The components of deferred income tax assets and liabilities are as follows as of December 31:

	2012			2011
Deferred income tax assets:
Point loyalty program	$	800,000		$	814,000
Accrued expenses	3,087,000			2,152,000
Other	577,000			725,000
Total deferred income tax assets	4,464,000			3,691,000
Deferred income tax liabilities:
Depreciation — property and equipment	(5,174,000		)	(5,675,000		)
Total deferred income tax liabilities	(5,174,000		)	(5,675,000		)
Net deferred income tax liabilities	$	(710,000	)	$	(1,984,000	)
Amounts recognized in the consolidated balance sheet:
Current deferred income tax assets	$	1,284,000		$	1,317,000
Noncurrent deferred income tax liabilities	(1,994,000		)	(3,301,000		)
	$	(710,000	)	$	(1,984,000	)