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NOTE 12 - INCOME TAXES | 12 Months Ended
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Dec. 31, 2011
Income Tax Disclosure [Text Block] | NOTE 12 – INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial and income tax reporting purposes and operating loss carryforwards. For the years ended December 31, 2011, 2010 and 2009, we recognized $820,000, $576,000 and $443,000, respectively, of state income tax.
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Federal tax |  |  | 34.00 | % |  |  | 34.00 | % |  |  | 34.00 | %
State franchise tax, net of federal benefit |  |  | 6.74 | % |  |  | -2.24 | % |  |  | -16.03 | %
Non deductible expenses |  |  | 14.42 | % |  |  | -7.76 | % |  |  | -2.47 | %
Changes in valuation allowance |  |  | -44.79 | % |  |  | -28.68 | % |  |  | -39.78 | %
Income tax expense |  |  | 10.37 | % |  |  | -4.68 | % |  |  | -24.28 | %
Our deferred tax assets and liabilities comprise the following (in thousands):
|  | December 31, |
Deferred tax assets: |  | 2011 |  |  | 2010 |
Net operating losses |  | $ | 79,874 |  |  | $ | 66,683 |
Accrued expenses |  |  | 8,359 |  |  |  | 7,387 |
Unfavorable contract liability |  |  | 3,559 |  |  |  | 3,578 |
Equity compensation |  |  | 3,530 |  |  |  | 3,701 |
Allowance for doubtful accounts |  |  | 1,820 |  |  |  | 3,608 |
Other |  |  | 1,071 |  |  |  | 455 |
Valuation allowance |  |  | (65,883 | ) |  |  | (56,617 | )
Total deferred tax assets |  | $ | 32,331 |  |  | $ | 28,795 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property & equipment |  |  | (11,652 | ) |  |  | (7,615 | )
Goodwill |  |  | (12,212 | ) |  |  | (10,503 | )
Unrealized gain on hedging agreement |  |  | (2,478 | ) |  |  | - |
Intangibles |  |  | (5,202 | ) |  |  | (10,326 | )
Other |  |  | (1,065 | ) |  |  | (628 | )
Total deferred tax liabilities |  | $ | (32,608 | ) |  | $ | (29,072 | )
Net deferred tax asset (liability) |  | $ | (277 | ) |  | $ | (277 | )
As of December 31, 2011, we had federal and state net operating loss carryforwards of approximately $210.6 million and $152.0 million, respectively, which expire at various intervals from the years 2017 to 2031. As of December 31, 2011, $30.3 million of our federal net operating loss carryforwards acquired in connection with the 1998 acquisition of Diagnostic Imaging Services, Inc., the 2006 acquisition of Radiologix Inc., the 2010 acquisition of Image Medical Corp. and the 2011 acquisition of Raven Holdings U.S., Inc. were subject to limitations related to their utilization under Section 382 of the Internal Revenue Code. Future ownership changes as determined under Section 382 of the Internal Revenue Code could further limit the utilization of net operating loss carryforwards. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. Cumulative excess tax benefits of $4.4 million, related to the exercise of nonqualified stock options, will be recorded in equity when realized. We consider all evidence available when determining whether deferred tax assets are more likely-than-not to be realized, including tax planning strategies that would be employed to prevent an NOL from expiring unutilized. As of December 31, 2011, we have determined that deferred tax assets of $32.3 million are more-likely than not to be realized. We have also determined that deferred tax liabilities of $12.2 million are required related to book basis in goodwill that has an indefinite life. For the next five years, and thereafter, federal net operating loss carryforwards expire as follows (in thousands):
Year Ended |  | Total Net Operating Loss Carryforwards |  |  | Amount Subject to 382 limitation |
2011 |  |  | - |  |  |  | - |
2012 |  |  | - |  |  |  | - |
2013 |  |  | - |  |  |  | - |
2014 |  |  | - |  |  |  | - |
2015 |  |  | - |  |  |  | - |
Thereafter |  |  | 210,610 |  |  |  | 30,328 |
|  | $ | 210,610 |  |  | $ | 30,328 |
We file consolidated income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. We continue to reinvest earnings of the non-US entities for the foreseeable future and therefore have not recognized any U.S. tax expense on these earnings. With limited exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 1998. We do not anticipate the results of any open examinations would result in a material change to its financial position. In 2010, we acquired a subsidiary that recognized a liability for uncertain tax positions in a prior year. 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, 2011 |  | $ | 90 |
We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized no penalties and interest during the years ended December 31, 2011, 2010 and 2009, and had assumed approximately $90,000 during the year ended December 31, 2010 for the payment of penalties and interest. The reserves for uncertain tax positions are included in accounts payable, accrued and other liabilities as of December 31, 2011 and 2010.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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