13.

INCOME TAXES

Components of our benefit for income taxes from continued operations are as follows:

(In Thousands)	Successor		Predecessor
	April 1, 2011 Through December 31, 2011		January 1, 2011 Through March 31, 2011		Year Ended December 31, 2010

Federal	$	-	$	-	$	-
State		-		-		-
Total current		-		-		-
Federal		1,626		-		1,845
State		661		-		-
Total deferred		2,287		-		1,845
Benefit for income taxes	$	2,287	$	-	$	1,845

The effective income tax rate from continuing operations differs from the statutory US federal income tax rate as follows:

	Successor			Predecessor
	April 1, 2011 Through December 31, 2011			January 1, 2011 Through March 31, 2011			Year Ended December 31, 2010
Taxes at federal statutory rate		35.0	%		35.0	%		35.0	%
State income tax, net		3.4	%		-4.0	%		1.6	%
Discontinued Operations		8.4	%		0.0	%		7.1	%
FICA credit		2.5	%		0.6	%		0.7	%
Other, net		-4.0	%		14.8	%		-3.8	%
Deferred taxes - NOL		-16.3	%		0.0	%		18.5	%
Reorganization costs		-3.1	%		-22.5	%		-6.3	%
Non-deductible interest		-20.7	%		0.0	%		0.0	%
Valuation allowance		6.6	%		-23.9	%		-45.7	%
Benefit for income taxes		11.8	%		0.0	%		7.1	%

Under the accounting guidance, deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax asset consisted of the following:

	Successor			Predecessor
(In Thousands)		2011			2010
Deferred Tax Assets
Reserves and accruals	$	1,395		$	1,258
Fair value of SWAP		-			7,972
Federal net operating loss carry forwards		26,232			39,545
State net operating loss carry forwards		858			766
AMT and other tax credits		2,897			3,758
Other		48			46
Total before valuation allowance		31,430			53,345
Valuation allowance		(13,682	)		(47,893	)
Total Deferred Tax Asset		17,748			5,452
Deferred Tax Liabilities
Prepaid expenses		(792	)		(771	)
Property and equipment		(34,757	)		(4,681	)
Intangibles		(4,633	)		-
Total Deferred Tax Liability		(40,182	)		(5,452	)
Net Deferred Tax Liability	$	(22,434	)	$	-

We generated U.S. net operating loss carry forwards in the amount of $120.1 million at December 31, 2011 (Successor) and $112.9 million at December 31, 2010 (Predecessor) will expire in tax years ending 2012 through 2031. Our AMT credits of $2.2 million have no expiration date. Our other general business tax credits of $0.6 million at December 31, 2011 (Successor) and $2.0 million at December 31, 2010 (Predecessor) will expire in tax years ending 2029 through 2031. Our state net operating loss carry forwards in the amount of $28.5 million at December 31, 2011 (Successor) and $25.7 million at December 31, 2010 (Predecessor) will expire in tax years ending 2020 through 2030. Due to certain significant changes in ownership in prior years, the net operating losses and general business credits for December 31, 2011 (Successor) have been adjusted on the balance sheet to reflect the amount that will be available for use under Internal Revenue Code of 1986, as amended, Sections 382 and 383.

We have performed an assessment of positive and negative evidence regarding the realization of the deferred tax assets in accordance with accounting guidance. This assessment included the evaluation of the reversal of temporary differences. As a result, we have concluded that it is more likely than not that the net deferred tax assets, excluding the deferred tax liability related to the step up in land recorded in fresh-start reporting, will not be realized and thus have provided an allowance for the net deferred tax asset balance. Our valuation allowance was $13.7 million at December 31, 2011 (Successor) and $47.9 million at December 31, 2010 (Predecessor).

The Company is subject to the accounting guidance for uncertain income tax positions as of January 1, 2007. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the accounting guidance. In addition, the Company did not record a cumulative effect adjustment related to the adoption of the accounting guidance for uncertain income tax positions.

Management does not believe that the amounts of unrecognized tax benefits will increase within the next twelve months. With a few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations for years before 1994.