Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 11 — Income Taxes

The Company’s corporate organizational structure requires the filing of two separate consolidated U.S. Federal income tax returns. As a result, taxable income included on one return cannot be offset by tax attributes, including net operating losses, included on the other return.

The effective income tax rates for the three months ended September 30, 2012 and 2011 were 23.1% and 13.2% respectively, while the effective income tax rates for the nine months ended September 30, 2012 and 2011 were 27.3% and 15.7%, respectively. Fluctuations in effective tax rates were historically impacted by non-cash changes in the fair value of the Company’s warrant liability, permanent tax differences with no associated income tax impact, and existing deferred tax asset valuation allowances. Future changes in estimates of taxable income could result in a significant change in the valuation allowance.

As of September 30, 2012, one group had deferred tax assets of approximately $16.9 million. The Company continues to maintain a full valuation allowance for these deferred tax assets. The benefit of operating loss carry-forwards is fully reserved at September 30, 2012.