Note 5 - Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 5. INCOME TAXES

The Company recorded income tax provisions of $1.0 million and $2.6 million in the third quarter and for the first nine months of 2013, respectively, and income tax benefits of $11.7 million and $14.0 million in the third quarter and for the first nine months of 2012, respectively.  The effective income tax rate was 41.0% and 35.9% for the first nine months of 2013 and 2012, respectively.  During the three months ended September 30, 2012, the Company recognized a tax benefit of $0.2 million primarily related to a reversal of a previously recorded unrecognized tax benefit. Additionally, the tax benefit associated with the goodwill impairment charge of $36.6 million was applied at a rate of 36%. Absent these items, the effective tax rate on operating results was 40.9% for the nine months ended September 30, 2012.

The Company is permitted to deduct certain intangible assets and goodwill balances over a period of 15 years from the date of the historic acquisitions, thereby reducing the Company’s taxable income as reported on the income tax return.  The Company estimates the annual cash savings from these deductions, as compared with tax expense to be provided for in the Company’s financial statements, from these deductions as follows:

	Income Tax Benefit
2013	$	4,700
2014		4,800
2015		5,100
2016		5,300
2017		5,600
2018 and thereafter		38,200
	$	63,700

In the year in which these benefits are realized, the Company would recognize a reduction in a long term deferred tax asset. 

At September 30, 2013, the Company did not have any unrecognized tax benefits.  During the second quarter of 2013, the Company reversed its uncertain tax position reserve.