Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

INCOME TAXES

7. INCOME TAXES

Huttig recognized no income tax expense or benefit in the first nine months of 2011 and a $0.1 million tax benefit in the first nine months of 2010. At September 30, 2011, the Company had gross deferred tax assets of $38.7 million and a valuation allowance of $30.2 million for net deferred tax assets of $8.5 million. The Company had deferred tax liabilities of $8.5 million at September 30, 2011. After classifying $0.7 million of short-term deferred tax assets with short-term deferred tax liabilities and $0.1 million of long-term deferred tax liabilities with long-term deferred tax assets, the Company had current net deferred tax liabilities of $7.7 million, as well as long term deferred tax assets of $7.7 million at September 30, 2011. The Company expects its deferred tax liabilities to be settled with utilization of its deferred tax assets. The deferred tax liabilities enable the Company to partially utilize the deferred tax assets at September 30, 2011 and the balance of the deferred tax assets are covered by the Company’s valuation allowance. The Company is not relying on future pre-tax income at September 30, 2011 to support the utilization of the deferred tax assets.