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Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

NOTE 10 — INCOME TAXES

The Company calculates its quarterly tax provision consistent with the guidance provided by ASC 740-270 whereby the Company forecasts its estimated annual effective tax rate and then applies that rate to its year-to-date pre-tax book income (loss). The Company has recorded tax benefit of $1.9 million for the six months ended June 30, 2011 due to the ability to carry back federal net operating losses incurred year to date. The Company has established and continues to maintain a full valuation allowance against its deferred tax assets as the Company does not currently believe that realization of those assets is more likely than not.

At June 30, 2011, the Company's 2008 federal income tax return is under examination by the Internal Revenue Service. Since the audit is at its preliminary stage, the Company has not recorded any audit adjustment as no finding or adjustments have been proposed to the Company. There is no other on-going tax audit with state tax jurisdictions. As a result of the Company's net operating loss carry forwards, all of its tax years are subject to federal and state tax examination.