Note 6 - Income Tax

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

6.             Income Tax

As of September 30, 2013, the Company had U.S. federal and state net operating loss carryforwards of $1.5 million and $17.2 million, respectively. These net operating loss carryforwards expire at various times beginning in 2022 through 2033. The Company also had alternative minimum tax credit carryforwards of $0.8 million. The Company establishes valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. During second quarter 2013, the Company determined that it is more likely than not that the benefit from certain federal and state loss carryforwards and the benefit from certain alternative minimum tax credit carryforwards will not be realized prior to expiration due to the attribute reduction required for the Company’s emergence from bankruptcy during the second quarter. The Company has recorded a valuation allowance of $0.7 million related to the deferred tax asset associated with the federal and state loss carryforwards and a valuation allowance of $0.8 million related to the deferred tax asset associated with the alternative minimum tax credit carryforwards which are expected to not be utilized during the current tax year.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2013 and December 31, 2012 are presented below (in thousands):

	September 30, 2013			December 31, 2012
Deferred tax liabilities:
Amortization	$	(12,900	)	$	(10,130	)
Depreciation		(10,267	)		(11,686	)
Amortized intangibles		—			(840	)
Prepaid expense		(469	)		(431	)
Other		(15	)		(14	)
Total deferred tax liabilities	$	(23,651	)	$	(23,101	)
Deferred tax assets:
Federal net operating loss carryforwards	$	525		$	4,426
Amortized intangibles		968			—
Alternative minimum credits carryforwards		751			556
State net operating loss carryforwards		306			769
Restructuring expense		2,204			632
Deferred compensation		304			323
Advance payments		307			328
Bad debt		415			704
Other		233			381
		6,013			8,119
Less: Valuation allowance		(1,498	)		—
Total net deferred tax assets	$	4,515		$	8,119

The effective income tax rate as of September 30, 2012 and 2013 was 16.3% and 3.8% respectively. The 2012 rate differs from the 35% federal statutory rate primarily due to certain non-deductible impairment expenses. The cancellation of debt income in 2013 is non-taxable, and is the primary difference between the 35% federal statutory rate and the effective tax rate for the nine months ended September 30, 2013.