INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

The income tax provision (benefit), in thousands, consists of the following for the years ended December 31, 2012, 2011 and 2010:

A reconciliation of income taxes at the statutory rate to the reported provision (benefit), in thousands, is as follows:



	2012			2011			2010
Federal income tax at statutory rate	$	(3,665	)	$	(2,354	)	$	4,225
State and local income taxes, net of federal income tax effect	(457		)	(395		)	599
Permanent differences	9			13			(156		)
Other differences	(41		)	(305		)	(295		)
	$	(4,154	)	$	(3,041	)	$	4,373

Significant components of the Company’s deferred tax liabilities and assets, in thousands, as of December 31, 2012 and 2011 are as follows:



	2012			2011
Deferred tax liabilities
Tax depreciation in excess of book, fixed assets	$	(3,144	)	$	(3,505	)
Tax amortization in excess of book, goodwill	—			(212		)
Gross deferred tax liabilities	(3,144		)	(3,717		)
Deferred tax assets
Book amortization in excess of tax, goodwill	2,776			—
Accrued property taxes	12			12
Allowance for doubtful accounts	43			43
Book amortization in excess of tax, fixed assets	7			29
Inventory capitalization	210			217
Reserve for CWS	—			129
State net operating loss carry forward	599			—
State recycling equipment tax credit carry forward	4,659			4,659
Interest rate swap	100			194
Deferred environmental cleanup	11			11
Other	35			87
Gross deferred tax assets	8,452			5,381
Valuation allowance	(4,162		)	(4,659		)
Net deferred tax assets (liabilities)	$	1,146		$	(2,995	)

The recorded valuation allowance, in thousands, consisted of the following at December 31, 2012 and 2011:



	Year Ended December 31,
	2012			2011
Valuation allowance, beginning of year	$	4,659		$	4,659
Change in valuation allowance	(497		)	—
Valuation allowance, end of year	$	4,162		$	4,659