INCOME TAXES	9 Months Ended
Sep. 30, 2014
INCOME TAXES
INCOME TAXES	NOTE 7—INCOME TAXES The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. The income tax provision results in an effective tax rate that has an unusual relationship to the Company's pretax income (loss). This is due to the federal and state valuation allowances on the Company's deferred tax assets as discussed below. The difference between the effective rate and the statutory rate is attributed primarily to the federal and state valuation allowances on the Company's deferred tax assets as discussed below. As a result of our net operating losses and the net deferred tax asset position (after exclusion of certain deferred tax liabilities that generally cannot be offset against deferred tax assets, known as "Naked Credits"), we expect to continue to provide for a full valuation allowance against all of our net federal and our net state deferred tax assets. For income tax purposes we amortize or depreciate certain assets that have been assigned an indefinite life for book purposes. The incremental amortization or depreciation deductions for income tax purposes result in an increase in certain deferred tax liabilities that cannot be used as a source of future taxable income for purposes of measuring our need for a valuation allowance against the net deferred tax assets. Therefore, we expect to record non cash deferred tax expense as we amortize these assets for tax purposes. During the three months ended September 30, 2014, our tax expense was $0.7 million for the Predecessor period July 1 to September 18, 2014 and $1.3 million for the Successor period September 19 to September 30, 2014. The third quarter of 2014 provision reflects the recording of additional naked credit amortization in the amount of $1.4 million and a local income tax provision of $0.6 million. During the three months ended September 30, 2013, our tax expense was $0.9 million. The third quarter of 2013 provision reflects the recording of additional naked credit amortization in the amount of $0.8 million and a local income tax provision of $0.1 million. During the nine months ended September 30, 2014, our tax expense was $2.8 million for the Predecessor period January 1 to September 18, 2014 and $1.3 million for the Successor period September 19 to September 30, 2014. The nine months ended September 30, 2014 provision reflects the recording of additional naked credit amortization in the amount of $3.2 million and a local income tax provision of $0.9 million. For the nine months ended September 30, 2013, our tax expense was $2.3 million. The nine months ended September 30, 2013 provision reflects the recording of additional naked credit amortization in the amount of $2.6 million and a local income tax provision of $0.3 million. Additionally, during the nine months ended September 30, 2013, the Company released unrecognized tax benefits of $0.6 million, which included $0.2 million of accrued interest, as a result of the lapse in the statute of limitations for the original tax return years and subsequent loss carryback periods. As of September 30, 2014, there are no unrecognized tax benefits and we do not expect a significant increase or decrease to the total amounts of unrecognized tax benefits within the next twelve months. The Company and its subsidiaries file a US federal income tax return, and various state and local income tax returns. With few exceptions, the Company is no longer subject to US federal or state and local tax examinations by tax authorities for years before 2011.

NOTE 7—INCOME TAXES

The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period.

The income tax provision results in an effective tax rate that has an unusual relationship to the Company's pretax income (loss). This is due to the federal and state valuation allowances on the Company's deferred tax assets as discussed below.

The difference between the effective rate and the statutory rate is attributed primarily to the federal and state valuation allowances on the Company's deferred tax assets as discussed below. As a result of our net operating losses and the net deferred tax asset position (after exclusion of certain deferred tax liabilities that generally cannot be offset against deferred tax assets, known as "Naked Credits"), we expect to continue to provide for a full valuation allowance against all of our net federal and our net state deferred tax assets.

For income tax purposes we amortize or depreciate certain assets that have been assigned an indefinite life for book purposes. The incremental amortization or depreciation deductions for income tax purposes result in an increase in certain deferred tax liabilities that cannot be used as a source of future taxable income for purposes of measuring our need for a valuation allowance against the net deferred tax assets. Therefore, we expect to record non cash deferred tax expense as we amortize these assets for tax purposes.

During the three months ended September 30, 2014, our tax expense was $0.7 million for the Predecessor period July 1 to September 18, 2014 and $1.3 million for the Successor period September 19 to September 30, 2014. The third quarter of 2014 provision reflects the recording of additional naked credit amortization in the amount of $1.4 million and a local income tax provision of $0.6 million. During the three months ended September 30, 2013, our tax expense was $0.9 million. The third quarter of 2013 provision reflects the recording of additional naked credit amortization in the amount of $0.8 million and a local income tax provision of $0.1 million.

During the nine months ended September 30, 2014, our tax expense was $2.8 million for the Predecessor period January 1 to September 18, 2014 and $1.3 million for the Successor period September 19 to September 30, 2014. The nine months ended September 30, 2014 provision reflects the recording of additional naked credit amortization in the amount of $3.2 million and a local income tax provision of $0.9 million. For the nine months ended September 30, 2013, our tax expense was $2.3 million. The nine months ended September 30, 2013 provision reflects the recording of additional naked credit amortization in the amount of $2.6 million and a local income tax provision of $0.3 million. Additionally, during the nine months ended September 30, 2013, the Company released unrecognized tax benefits of $0.6 million, which included $0.2 million of accrued interest, as a result of the lapse in the statute of limitations for the original tax return years and subsequent loss carryback periods. As of September 30, 2014, there are no unrecognized tax benefits and we do not expect a significant increase or decrease to the total amounts of unrecognized tax benefits within the next twelve months.

The Company and its subsidiaries file a US federal income tax return, and various state and local income tax returns. With few exceptions, the Company is no longer subject to US federal or state and local tax examinations by tax authorities for years before 2011.