XML 21 R19.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes [Abstract]  
INCOME TAXES
NOTE 13 — INCOME TAXES
     As a result of the merger with CoolBrands International, Inc. on November 2, 2010, as discussed in Note 1 in the 2010 Annual Report, the Company converted from a corporation taxed under the provisions of Subchapter S of the Internal Revenue Code to a tax-paying entity and accounts for income taxes under the asset and liability method. For the three and six months ended June 30, 2011, the Company has recorded an estimate for income taxes based on the Company’s projected taxable operating results for the year ending December 31, 2011 and an effective income tax rate of 34.2%.
     In addition, during 2011, the Company reversed the valuation allowance of $2,368,000 recorded as of December 31, 2010 as a result of the Company’s expectation to utilize its deferred tax assets through the generation of future taxable income arising from deferred tax liability balances. The majority of these deferred tax liabilities were recorded as part of the acquisition of Choice on March 1, 2011 as discussed in Note 3.