INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of the components of the Company's income tax expense (benefit) from operations

The components of the Company’s income tax expense (benefit) from operations for the year ended December 31, consisted of (in thousands):

	2012			2011		2010
Current:
Federal	$	192		$	396	$	102
State	204			671		92
Deferred:
Federal	(72		)	181		(1,477		)
State	(7		)	16		(210		)
Income tax expense (benefit)	$	317		$	1,264	$	(1,493	)

Schedule of reconciliation of income tax expense (benefit) from operations to the federal statutory rate

A reconciliation of income tax expense (benefit) from operations to the federal statutory rate for the year ended December 31 is as follows (in thousands):

	2012			2011			2010
Income taxes computed at federal statutory rate	$	3,367		$	1,810		$	(7,093	)
State income taxes - net of federal benefit	471			826			(516		)
Other differences:
Federal alternative minimum tax	27			396			102
Book (income) loss for pass-through entities not subject to tax	(5,201		)	(4,397		)	9,771
Change in reserve in uncertain tax positions including related interest	-			-			(1,839		)
Increase (decrease) of valuation allowance	1,743			2,432			(2,069		)
Other	(90		)	197			151
Income tax expense (benefit)	$	317		$	1,264		$	(1,493	)

Schedule of net deferred tax assets

Significant items comprising the net deferred tax asset at December 31 are (in thousands):

	2012			2011
Deferred tax liabilities:
Accelerated depreciation	$	(1,328	)	$	(1,717	)
Prepaid expenses	(434		)	(287		)
Deferred tax gain	(1,476		)	(1,620		)
Other	(88		)	(84		)
	(3,326		)	(3,708		)
Deferred tax assets:
Investment impairment	30,784			30,784
Gift cards	655			592
Deferred revenues	847			1,008
Accrual for employee benefits and severance	504			444
AMT credit	525			498
Net operating loss carryforward	4,555			2,928
Claims reserves	413			379
Intangible assets	342			358
Deferred book gain	1,866			1,997
Other reserves	2,494			2,556
	42,985			41,544
Valuation allowance	(39,580		)	(37,836		)
Net deferred tax assets	$	79		$	-

Summary of the activity related to unrecognized tax benefits

	2012		2011		2010
Balance at January 1st	$	-	$	-	$	1,339
Gross increases in unrecognized tax benefits due to prior year positions	-		-		-
Gross decreases in unrecognized tax benefits due to prior year positions	-		-		-
Gross increases in unrecognized tax benefits due to current year positions	-		-		-
Gross decreases in unrecognized tax benefits due to current year positions	-		-		-
Gross decreases in unrecognized tax benefits due to settlements with taxing authorities	-		-		-
Gross decreases in unrecognized tax benefits due to statute expirations	-		-		(1,339		)
Other	-				-
Unrecognized tax benefits at December 31st	$	-	$	-	$	-