Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

10. Income Taxes

As of June 30, 2011, the Company's deferred tax assets were primarily comprised of federal net operating loss carryforwards ("NOLs") of $7.2 million, or $2.5 million tax-effected; state NOL carryforwards of $136,000 tax-effected; and federal and state alternative minimum tax credit carryforwards of $658,000 tax-effected. In assessing the realizability of its deferred tax assets, the Company considered both positive and negative evidence when measuring the need for a valuation allowance. The ultimate realization of deferred tax assets is dependent upon the existence of, or generation of, taxable income during the periods in which those temporary differences become deductible. Among other factors, the Company considered future taxable income generated by the projected differences between financial statement depreciation and tax depreciation.  Based upon the available evidence, the Company believed that it was more likely than not that all of the deferred tax assets would be realized, and therefore no valuation allowance was established at December 31, 2010 and June 30, 2011.

The effective tax rates for the first six months of 2011 and 2010 were affected by the impact of the Company's non-deductible expenses, primarily meals and entertainment expenses, and state and local taxes.

Significant components of the Company's deferred tax liabilities and assets are as follows:

	June 30, 2011		December 31, 2010
	(in thousands)
Deferred tax liabilities:
Property, equipment and leasehold improvements	$	10,985	$	11,462
Intangible assets		6,490		6,539
Equity investments		474		1,093
Other		103		52
Total deferred tax liabilities		18,052		19,146
Deferred tax assets:
Net operating losses and alternative minimum tax credit carryforwards		2,920		8,310
Accrued salaries and severance		833		828
Other		904		822
Total deferred tax assets		4,657		9,960
Net deferred tax liability	$	13,395	$	9,186
As Presented on the Balance Sheet:
Long-term deferred income tax liability, net	$	13,991	$	10,118
Current deferred income tax asset, net		596		932
Net deferred tax liability	$	13,395	$	9,186