INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

The income tax provision (benefit), in thousands, consists of the following for the years ended December 31, 2013, 2012 and 2011:

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



	2013			2012			2011
Federal income tax at statutory rate	$	(4,225	)	$	(3,665	)	$	(2,354	)
State and local income taxes, net of federal income tax effect	(371		)	(457		)	(395		)
Permanent differences	1,140			9			13
Increase (decrease) in deferred tax asset valuation allowance	4,752			(497		)	—
Other differences	92			456			(305		)
	$	1,388		$	(4,154	)	$	(3,041	)

Significant components of the Company’s deferred tax liabilities and assets, in thousands, as of December 31, 2013 and 2012 are as follows:



	2013			2012
Deferred tax liabilities
Property and equipment	$	(2,735	)	$	(3,137	)
Gross deferred tax liabilities	(2,735		)	(3,137		)
Deferred tax assets
Intangibles and goodwill	2,919			2,776
Accrued property taxes	10			12
Allowance for doubtful accounts	43			43
Inventory capitalization	120			210
Stock options	62			—
Federal net operating loss carry forward	2,413			—
State net operating loss carry forward	1,521			599
State recycling equipment tax credit carry forward	4,617			4,659
Interest rate swap	30			100
Accrued expenses	—			11
Other	11			35
Gross deferred tax assets	11,746			8,445
Valuation allowance	(8,914		)	(4,162		)
Net deferred tax assets	$	97		$	1,146

The recorded valuation allowance, in thousands, consisted of the following at December 31, 2013 and 2012:



	Year Ended December 31,
	2013		2012
Valuation allowance, beginning of year	$	4,162	$	4,659
Increase (decrease) in deferred tax asset valuation allowance	4,752		(497		)
Valuation allowance, end of year	$	8,914	$	4,162