Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v2.4.0.8
INCOME TAXES
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
10. INCOME TAXES
 
The income tax provision consists of the following (in thousands):
 
     
2013
    
2012
  
Current:
Federal
   $ (2,627 )   $ 15,390  
 
State
     289       1,509  
        (2,338 )     16,899  
Deferred:
Federal
     1,572       (1,712 )
 
State
     405       (12 )
        1,977       (1,724 )
      $ (361 )   $ 15,175  
 
A reconciliation of the income tax provision relative to continuing operations with amounts determined by applying the statutory U.S. Federal income tax rate of 35% to consolidated income before income taxes is as follows (in thousands):
 
   
2013
    
2012
  
Tax provision at U.S. statutory rate
   $ (1,513 )   $ 15,053  
State taxes, net of federal benefit
     473       1,067  
Permanent differences     573       (586 )
Credits     (73 )     (46 )
Adjustments to beginning deferred balances     221       (196 )
Other
     (42 )     (117 )
    $ (361 )   $ 15,175  
 
At December 31, 2013 and 2012, our deferred tax assets (liabilities) consist of the following (in thousands):
                 
   
2013
    
2012
  
Deferred tax assets:
                
  Deferred compensation
   $ 537     $ 1,713  
  Depreciation of fixed assets
     --       595  
  Intangible assets and amortization
     1,835       591  
  Accrued expenses
     427       933  
  Chip and token liability
     19       93  
  Allowance for doubtful accounts
     188       150  
  Other
     224       531  
      3,230       4,606  
Deferred tax liabilities:
                
  Depreciation of fixed assets
     (627 )     --  
  Prepaid expenses
     (1,461 )     (1,310 )
  Interest in partnerships
     --       (176 )
      (2,088 )     (1,486 )
    $ 1,142     $ 3,120  
 
Management has made an annual analysis of its state and federal tax returns that remain subject to examination by major authorities (presently consisting of tax years 2010 through 2012) and concluded that we have no recordable liability as of December 31, 2013 or 2012, for unrecognized tax benefits as a result of uncertain tax positions taken.