Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Schedule of components of income (loss) from continuing operation before income taxes

	Years ended December 31,
	2013		2012		2011
	(in thousands)
US	$	10,408	$	2,335	$	23,902
Non U.S.	892		361		(17		)
Income from continuing operations before income taxes	11,300		2,696		23,885

Schedule of components of income tax expense

	Federal			State			Foreign		Total
	(in thousands)
December 31, 2013
Current	$	(155	)	$	123		$	95	$	63
Deferred	(3,755		)	(634		)	—		(4,389		)
Total 2013	$	(3,910	)	$	(511	)	$	95	$	(4,326	)
December 31, 2012
Current	$	175		$	37		$	—	$	212
Deferred	707			242			—		949
Total 2012	$	882		$	279		$	—	$	1,161
December 31, 2011
Current	$	1,373		$	(331	)	$	—	$	1,042
Deferred	9,783			(1,448		)	—		8,335
Total 2011	$	11,156		$	(1,779	)	$	—	$	9,377

Schedule of reconciliation of the federal income tax expense at the statutory rate to the effective income tax expense

	Years Ended December 31,
	2013				2012				2011
	(in thousands and % of pre-tax income)
	$		%		$		%		$		%
Statutory federal income tax expense	3,842		34.0		916		34.0		8,147		34.0
State taxes, net of federal benefit	(338	)	(3.0	)	185		6.9		(38	)	(0.2	)
Foreign tax paid	95		0.8		—		—		—		—
State income tax apportionment adjustment	—		—		—		—		(1,137	)	(4.7	)
Extraterritorial income exclusion	—		—		—		—		(7	)	—
Tax consequences of the sale of engines to WMES	(36	)	(0.3	)	(46	)	(1.7	)	1,214		5.1
Uncertain tax positions	160		1.4		97		3.6		195		0.8
Permanent differences-162(m)	732		6.5		385		14.3		737		3.1
ETI basis restoration	(8,728	)	(77.2	)	—		—		—		—
Permanent differences and other	(53	)	(0.5	)	(376	)	(14.1	)	266		1.0
Effective income tax expense (benefit)	(4,326	)	(38.3	)	1,161		43.0		9,377		39.1

Summary of activity related to the Company's unrecognized tax benefits

	(in thousands)
Balance as of December 31, 2011	$	308
Increases related to current year tax positions	98
Balance as of December 31, 2012	406
Increases related to current year tax positions	160
Balance as of December 31, 2013	$	566

Schedule of tax effects of temporary differences of the deferred tax assets and liabilities

	As of December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Unearned lease revenue	$	1,134		$	1,550
State taxes	532			706
Reserves and allowances	853			1,596
Other accruals	1,048			962
Alternative minimum tax credit	377			542
Net operating loss carry forward	36,778			32,470
Charitable contributions	17			18
Total deferred tax assets	40,739			37,844
Deferred tax liabilities:
Depreciation and impairment on aircraft engines and equipment	(125,675		)	(124,292		)
Other deferred tax liabilities	(1,575		)	(4,451		)
Net deferred tax liabilities	(127,250		)	(128,743		)
Other comprehensive income, deferred tax asset	(174		)	261
Net deferred tax liabilities	$	(86,685	)	$	(90,638	)