NOTE 11 - INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Recognition of income tax expense

For the years ended December 31, 2012, 2011 and 2010, we recognized income tax (benefit) expense comprised of the following:

	Years Ended
	December 31,
	2012		2011		2010
Federal tax		34.00%		34.00%		34.00%
State franchise tax, net of federal benefit		9.56%		6.74%		-2.24%
Non deductible expenses		11.28%		14.40%		-7.76%
Changes in valuation allowance		-1240.29%		-44.79%		-28.68%
(Benefit from) provision for income taxes		-1185.45%		10.35%		-4.68%

A reconciliation of the statutory U.S. federal rate

A reconciliation of the statutory U.S. federal rate and effective rates is as follows (in thousands):

	Years Ended
	December 31,
	2012			2011		2010
State current tax	$	732		$	820	$	576
Other current tax		32			–		–
Federal deferred tax		(51,003	)		–		–
State deferred tax		(9,671	)		–		–
(Benefit from) provision for income taxes	$	(59,910	)	$	820	$	576

Deferred tax assets and liabilities

Our deferred tax assets and liabilities comprise the following (in thousands):

	December 31,
Deferred tax assets:	2012			2011
Net operating losses	$	85,603		$	79,874
Accrued expenses		9,679			8,359
Unfavorable contract liability		3,901			3,559
Equity compensation		2,406			3,530
Allowance for doubtful accounts		1,831			1,820
Other		1,194			1,072
Valuation Allowance		(7,645	)		(65,883	)
Total Deferred Tax Assets	$	96,969		$	32,331
Deferred tax liabilities:
Property Plant & Equipment		(9,680	)		(11,652	)
Goodwill		(14,221	)		(12,212	)
Unrealized gain on hedging agreement		–			(2,478	)
Intangibles		(10,411	)		(5,202	)
Other		(2,260	)		(1,064	)
Total Deferred Tax Liabilities	$	(36,572	)	$	(32,608	)
Net Deferred Tax Asset (Liability)	$	60,397		$	(277	)

Federal net operating loss carryforwards

For the next five years, and thereafter, federal net operating loss carryforwards expire as follows (in thousands):

	Total Net Operating Loss Carryforwards		Amount Subject to 382 limitation
Year Ended
2013	$	–	$	–
2014		–		–
2015		–		–
2016		–		–
2017		15,184		–
Thereafter		209,725		23,475
	$	224,909	$	23,475

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2009	$	–
Additional based on tax positions of acquired subsidiaries in prior years		90
Balance at December 31, 2012	$	90