Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

     The income tax provision recorded at September 30, 2011 is our best estimate of our expected tax expense taking into consideration our current earnings, expectation of future earnings, federal alternative minimum tax, state income tax for state jurisdictions in which we expect taxable income, changes in our deferred tax assets and liabilities, potential effects of adverse outcomes on tax positions we have taken and the benefits of tax positions taken for which the applicable statute of limitations has expired, true-up effects of prior tax provision estimates compared to actual tax returns, and our net operating loss carryforwards and valuation allowance.

     At December 31, 2010, we had a net deferred tax asset in the amount of $2,975, due primarily to the expected benefit associated with our net operating loss carryforwards. The gain on the sale of the WaterSecure operations in June 2011 (see Note 5) utilized the majority of our net operating loss carryforwards. As a result, the balance of our net deferred tax asset has been reduced and we have eliminated the valuation allowance related to expected utilization of our net operating losses. The effect of the reduction of our net deferred tax asset and elimination of our valuation allowance is included as a component of our current period income tax provision for the nine month period ended September 30, 2011.