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INCOME TAXES
3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
9. INCOME TAXES

 

The Company recognized income tax expense of $3.8 million in the first quarter of 2013 compared to a tax benefit of $0.4 million in the first quarter of 2012. The effective tax rate for the first quarter of 2013 was 40.0%, which differs from the U.S. Federal statutory rate of 35% primarily due to the impact of state and local taxes. During the fourth quarter of 2012, the Company released $59.9 million of valuation allowance against its net deferred tax assets. Therefore, income tax benefit for the first quarter of 2012 reflected the utilization of valuation allowance for federal, state and local income taxes resulting in an effective tax rate less than the U.S. Federal statutory rate of 35%.