XML 66 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes |
6. | Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows:
|  | December 31, |
|  | 2013 |  | 2012 |
|  | (In thousands) |
Deferred tax liabilities: |  |  |  |  |  |  |
Property and equipment |  | $ | 8,235 |  | $ | 9,205 |
Intangible assets |  |  | 14,425 |  |  | 10,437 |
Prepaid expenses |  |  | 601 |  |  | 616 |
Total deferred tax liabilities |  |  | 23,261 |  |  | 20,258 |
Deferred tax assets: |  |  |  |  |  |  |
Allowance for doubtful accounts |  |  | 232 |  |  | 233 |
Compensation |  |  | 3,355 |  |  | 3,195 |
Other accrued liabilities |  |  | 128 |  |  | 76 |
Loss carry forwards |  |  | 7 |  |  | 58 |
|  |  | 3,722 |  |  | 3,562 |
Less: valuation allowance |  |  | 7 |  |  | 58 |
Total net deferred tax assets |  |  | 3,715 |  |  | 3,504 |
Net deferred tax liabilities |  | $ | 19,546 |  | $ | 16,754 |
Current portion of deferred tax assets |  | $ | 1,025 |  | $ | 892 |
Non-current portion of deferred tax liabilities |  |  | (20,571) |  |  | (17,646) |
Net deferred tax liabilities |  | $ | (19,546) |  | $ | (16,754) |
At December 31, 2013, we have state and local tax loss carry forwards of approximately $162,000, which will expire in 2023. During 2013, we utilized approximately $790,000 in state and local tax loss carry forwards, approximately $381,000 in state and local tax loss carry forwards expired and accordingly, the valuation allowances decreased by $51,000. At December 31, 2013, the valuation allowance for net deferred tax assets relates to state loss carry forwards. Deferred tax assets are required to be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. At December 31, 2013 and 2012, net deferred tax liabilities include a deferred tax asset of $2,089,000 and $1,199,000, respectively, relating to deferred compensation and stock-based compensation expense. Full realization of the tax asset related to stock based compensation requires stock options to be exercised at a price equaling or exceeding the sum of the grant price plus the fair value of the option at the grant date and restricted stock to vest at a price equaling or exceeding the fair market value at the grant date. Accounting guidance, however, does not allow a valuation allowance to be recorded unless the company’s future taxable income is expected to be insufficient to recover the asset. Accordingly, there can be no assurance that the price of the Company’s common stock will increase to levels sufficient to realize the entire tax benefit currently reflected in the balance sheets at December 31, 2013 and 2012. See Note 7 — Stock-Based Compensation for further discussion of stock-based compensation expense. The significant components of the provision for income taxes are as follows:
|  | Years Ended December 31, |
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,210 |  | $ | 6,160 |  | $ | 1,820 |
State |  |  | 1,125 |  |  | 1,150 |  |  | 510 |
Total current |  |  | 7,335 |  |  | 7,310 |  |  | 2,330 |
Total deferred |  |  | 2,805 |  |  | 4,540 |  |  | 6,100 |
|  | $ | 10,140 |  | $ | 11,850 |  | $ | 8,430 |
Taxes are allocated as follows: |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 9,992 |  | $ | 11,939 |  | $ | 8,604 |
Discontinued operations |  |  | 148 |  |  | (89) |  |  | (174) |
|  | $ | 10,140 |  | $ | 11,850 |  | $ | 8,430 |
In addition, we recognized a tax benefit of $9,200 and tax expense of $25,000 and $0 as a result of stock option exercises for the difference between compensation expense for financial statement and income tax purposes for the years ended December 31, 2013, 2012 and 2011, respectively. The reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense (benefit) is as follows:
|  | Years Ended December 31, |
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Tax expense at U.S. statutory rates |  | $ | 8,894 |  | $ | 10,486 |  | $ | 7,260 |
State tax expense, net of federal benefit |  |  | 1,192 |  |  | 1,356 |  |  | 1,116 |
Other, net |  |  | 105 |  |  | 42 |  |  | 69 |
Change in valuation allowance on loss carry forwards |  |  | (51) |  |  | (34) |  |  | (15) |
|  | $ | 10,140 |  | $ | 11,850 |  | $ | 8,430 |
Discontinued operations |  |  | 148 |  |  | 89 |  |  | 174 |
|  | $ | 9,992 |  | $ | 11,939 |  | $ | 8,604 |
The Company files income taxes in the U.S. federal jurisdiction, and in various state and local jurisdictions. The Company is no longer subject to U.S. federal examinations by the Internal Revenue Service (IRS) for years prior to 2008. During the first quarter of 2012, the IRS commenced an examination of the Company’s 2010 U.S. federal income tax return which was completed in the third quarter of 2012 and resulted in no changes to the return. The Company is subject to examination for income and non-income tax filings in various states. Included in the balance sheet at December 31, 2012 are tax accruals of approximately $16,000 for uncertain tax positions. Recognition of any of the related unrecognized tax benefits would affect the Company’s effective tax rate. As of December 31, 2013 there were no accrued balances recorded related to uncertain tax positions. We classify income tax-related interest and penalties as interest expense and corporate general and administrative expense, respectively. For the years ended December 31, 2013 and 2012, we had no tax-related interest or penalties and had $0 accrued at December 31, 2013 and 2012. In March 2012, the Compensation Committee recommended, and the Board approved, a $350,000 discretionary bonus to the CEO for the year ended December 31, 2011. As a result of the CEO’s total gross compensation, approximately $177,000 was nondeductible pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration