Central Parking Finance Trust PFD TR CV SECS (CRLKP) 10-K/A 2010 FY Annual report (amended)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K/A

Amendment No. 1

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2010

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 333-50437

Standard Parking Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware	16-1171179
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

900 N. Michigan Avenue, Suite 1600, Chicago, Illinois 60611-1542
(Address of Principal Executive Offices, Including Zip Code)

(312) 274-2000
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

COMMON STOCK, PAR VALUE $0.001 PER SHARE
(Title of Each Class)

THE NASDAQ STOCK MARKET LLC
(Name of Each Exchange on which Registered)

Securities registered pursuant to Section 12(g) of the Act:
NONE

     Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yeso Noþ

     Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yeso Noþ

     Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesþ Noo

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yeso Noo

     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.o

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer þ 
Non-accelerated filer o
(Do not check if a smaller reporting company) Smaller reporting company o

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yeso Noþ

     As of June 30, 2010, the aggregate market value of the voting and non-voting common equity held by nonaffiliates of the registrant was approximately $247.3 million, based on the closing price of the common stock as reported on the NASDAQ Global Select Market.

     As of March 8, 2011, there were 15,802,545 shares of common stock of the registrant outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

     Portions of the registrant’s definitive proxy statement to be delivered to shareholders in connection with the Annual Meeting of Stockholders to be held on April 29, 2011, are incorporated by reference into Part III of this Form 10-K.

TABLE OF CONTENTS

Explanatory Note	3
Item 8. Financial Statements and Supplementary Data	4
Exhibit Listing	35
Signatures	36
Exhibit Index	37
EX-23
EX-31.1
EX-31.2
EX-31.3

2

EXPLANATORY NOTE

     Standard Parking Corporation (the “Company”) is filing this Amendment No. 1 on Form 10-K/A (this “Amendment”) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, which was originally filed with the Securities and Exchange Commission on March 11, 2011 (the “Original Filing”).

     As permitted by Rule 103 of Regulation S-T, the purpose of this Amendment is to correct an error made by a third-party EDGAR filing service that was outside the control of the registrant. The error in the Original Filing resulted in the 2008 and 2009 Treasury Stock Amounts being moved to the Accumulated Deficit column in the Consolidated Statements of Stockholders’ Equity. This Amendment is being filed to amend and restate the Consolidated Statements of Stockholders’ Equity in its entirety.

     In addition, this Form 10-K/A corrects the inadvertent omission of a reference to a previously filed agreement, which has been added as exhibit 10.23.

     Except as described above, the Original Filing has not been amended, updated or otherwise modified. As required by Rule 12b-15 under the Securities and Exchange Act of 1934, new certifications of our principal executive officer, principal financial officer and principal accounting officer are being filed as exhibits to this Form 10-K/A.

3

ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of Standard Parking Corporation

We have audited the accompanying consolidated balance sheets of Standard Parking Corporation (Company) as of December 31, 2010 and 2009, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2010. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Standard Parking Corporation at December 31, 2010 and 2009, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Standard Parking Corporation’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 11, 2011, expressed an unqualified opinion thereon.

/s/  ERNST & YOUNG LLP

Chicago, Illinois

March 11, 2011

4

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of Standard Parking Corporation

We have audited Standard Parking Corporation’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). Standard Parking Corporation’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanyingForm 10-K. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Standard Parking Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Standard Parking Corporation as of December 31, 2010, and 2009, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2010, and our report dated March 11, 2011 expressed an unqualified opinion thereon.

/s/  ERNST & YOUNG LLP

Chicago, Illinois

March 11, 2011

5

STANDARD PARKING CORPORATION

CONSOLIDATED BALANCE SHEETS

	December 31,
	2010			2009
	(In thousands, except for share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	7,305		$	8,256
Notes and accounts receivable, net		52,167			44,490
Prepaid expenses and supplies		2,312			5,401
Deferred taxes		2,314			3,457
Total current assets		64,098			61,604
Leasehold improvements, equipment and construction in progress, net		16,839			17,445
Other assets:
Advances and deposits		5,172			4,904
Long-term receivables, net		12,789			10,325
Intangible and other assets, net		8,910			8,545
Cost of contracts, net		15,628			11,818
Goodwill		132,196			128,113
		174,695			163,705
Total assets	$	255,632		$	242,754
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	43,984		$	48,502
Accrued rent		4,044			3,905
Compensation and payroll withholdings		10,774			5,710
Property, payroll and other taxes		3,025			3,038
Accrued insurance		7,012			7,185
Accrued expenses		15,127			13,325
Current portion of obligations under senior credit facility and other		136			128
Current portion of capital lease obligations		537			534
Total current liabilities		84,639			82,327
Deferred taxes		9,637			8,151
Long-term borrowings, excluding current portion:
Obligations under senior credit facility		95,200			109,850
Capital lease obligations		988			1,522
Other		1,041			1,177
		97,229			112,549
Other long-term liabilities		27,324			25,050
Stockholders’ equity:
Preferred Stock, par value $0.01 per share; 5,000,000 and 10,000 shares authorized as of December 31, 2010 and 2009, respectively; no shares issued		—			—
Common stock, par value $.001 per share; 50,000,000 and 21,300,000 shares authorized as of December 31, 2010, and 2009, respectively; 15,775,645 and 15,385,428 shares issued and outstanding as of December 31, 2010, and 2009, respectively		16			15
Additional paid-in capital		97,291			91,793
Accumulated other comprehensive income		103			313
Accumulated deficit		(60,532	)		(77,372	)
Total Standard Parking Corporation Stockholder’s equity		36,878			14,749
Noncontrolling interest		(75	)		(72	)
Total equity		36,803			14,677
Total liabilities and stockholders’ equity	$	255,632		$	242,754

See Notes to Consolidated Financial Statements.

6

STANDARD PARKING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

	Years Ended December 31,
	2010			2009			2008
	(In thousands, except for share and per share data)
Parking services revenue:
Lease contracts	$	138,664		$	140,441		$	154,311
Management contracts		171,331			153,382			145,828
Reimbursed management contract revenue		411,148			401,671			400,621
Total revenue		721,143			695,494			700,760
Costs and expenses:
Cost of parking services:
Lease contracts		128,613			130,897			140,058
Management contracts		94,481			84,167			69,285
Reimbursed management contract expense		411,148			401,671			400,621
Total cost of parking services		634,242			616,735			609,964
Gross profit:
Lease contracts		10,051			9,544			14,253
Management contracts		76,850			69,215			76,543
Total gross profit		86,901			78,759			90,796
General and administrative expenses(1)		47,878			44,707			47,619
Depreciation and amortization		6,074			5,828			6,059
Total costs and expenses		688,194			667,270			663,642
Operating income		32,949			28,224			37,118
Other expenses (income):
Interest expense		5,335			6,012			6,476
Interest income		(249	)		(268	)		(173	)
		5,086			5,744			6,303
Income before income taxes		27,863			22,480			30,815
Income tax expense		10,755			8,265			11,622
Net income		17,108			14,215			19,193
Less: Net income attributable to noncontrolling interest		268			123			148
Net income attributable to Standard Parking Corporation	$	16,840		$	14,092		$	19,045
Common stock data:
Net income per share:
Basic	$	1.08		$	0.92		$	1.10
Diluted	$	1.06		$	0.90		$	1.07
Weighted average shares outstanding:
Basic		15,579,352			15,292,412			17,325,235
Diluted		15,944,662			15,683,525			17,731,473

(1) Non-cash stock based compensation expense of $2,310, $2,292 and $1,509 for the years ended December 31, 2010, 2009 and 2008, respectively, is included in general and administrative expenses.

See Notes to Consolidated Financial Statements.

7

STANDARD PARKING CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

										Accumulated
	Common Stock(1)						Additional			Other			Treasury Stock
	Number of			Per Share			Paid-In			Comprehensive			Number of						Accumulated			Noncontrolling
	Shares			Par Value			Capital			Income (Loss)			Shares			Amount			Deficit			Interest			Total
	(In thousands, except for share and per share data)
Balance (deficit) at December 31, 2007		18,371,308		$	18		$	150,520		$	482			48,474		$	(1,172	)	$	(110,509	)	$	19		$	39,358
Net income																				19,045			148			19,193
Foreign currency translation adjustments											(490	)														(490	)
Revaluation of interest rate cap											93															93
Comprehensive income																										18,796
Repurchase and retirement of common stock		(2,429,993	)		(2	)		(50,033	)					(48,474	)		1,172									(48,863	)
Repurchase of common stock														627,423			(11,161	)								(11,161	)
Proceeds from exercise of stock options		152,182			—			722																		722
Issuance of stock grants		17,284			—			355																		355
Stock-based compensation related to long-term incentive plan								107																		107
Non-cash stock-based compensation related to restricted stock units								991																		991
Non-cash stock-based compensation expense								1																		1
Tax benefit from exercise of stock options								878																		878
Distribution to noncontrolling interest																							(226	)		(226	)
Balance (deficit) at December 31, 2008		16,110,781		$	16		$	103,541		$	85			627,423		$	(11,161	)	$	(91,464	)	$	(59	)		958
Net income																				14,092			123			14,215
Foreign currency translation adjustments											228															228
Comprehensive income																										14,443
Repurchase and retirement of common stock		(843,540	)		(1	)		(15,045	)					(627,423	)		11,161									(3,885	)
Proceeds from exercise of stock options		105,896			—			415																		415
Issuance of stock grants		12,291			—			220																		220
Stock-based compensation related to long-term incentive plan								51																		51
Non-cash stock-based compensation related to restricted stock units								2,046																		2,046
Non-cash stock-based compensation expense								30																		30
Tax benefit from exercise of stock options								535																		535
Distribution to noncontrolliing interest																							(136	)		(136	)
Balance (deficit) at December 31, 2009		15,385,428		$	15		$	91,793		$	313			—		$	—		$	(77,372	)	$	(72	)	$	14,677
Net income																				16,840			268			17,108
Foreign currency translation adjustments											169															169
Revaluation of interest rate cap											(379	)														(379	)
Comprehensive income																										16,898
Proceeds from exercise of stock options		385,027			1			1,772																		1,773
Issuance of stock grants		14,396						245																		245
Retirement of common stock		(9,206	)		—			—																		—
Non-cash stock-based compensation related to restricted stock units								2,065																		2,065
Tax benefit from exercise of stock options								1,416																		1,416
Distribution to noncontrolling interest																							(271	)		(271	)
Balance (deficit) at December 31, 2010		15,775,645		$	16		$	97,291		$	103			—		$	—		$	(60,532	)	$	(75	)	$	36,803

See Notes to Consolidated Financial Statements.

8

STANDARD PARKING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2010			2009			2008
	(In thousands, except for share and per share data)
Operating activities
Net income	$	17,108		$	14,215		$	19,193
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		6,018			5,460			5,475
Loss on sale of assets		115			332			525
Amortization of debt issuance costs		638			640			449
Non-cash stock-based compensation		2,310			2,292			1,509
Write off of debt issuance costs		—			—			13
Provision for losses on accounts receivable		100			376			513
Excess tax benefit related to stock option exercises		(1,446	)		(535	)		(878	)
Deferred income taxes		2,629			4,642			7,644
Changes in operating assets and liabilities:
Notes and accounts receivable		(9,672	)		(1,860	)		(4,831	)
Prepaid assets		2,710			(2,244	)		386
Other assets		(1,887	)		(1,798	)		(3,020	)
Accounts payable		(5,098	)		2,028			3,505
Accrued liabilities		6,009			(1,787	)		(928	)
Net cash provided by operating activities		19,534			21,761			29,555
Investing activities
Purchase of leasehold improvements and equipment		(2,985	)		(3,486	)		(6,303	)
Proceeds from the sale of assets		5			58			264
Acquisitions		(3,597	)		(2,450	)		(6,318	)
Cost of contracts purchased		(678	)		(934	)		(566	)
Capital interest		(139	)		—			—
Contingent purchase payments		(340	)		(268	)		(64	)
Net cash used in investing activities		(7,734	)		(7,080	)		(12,987	)
Financing activities
Proceeds from exercise of stock options		1,773			415			722
Repurchase of common stock		—			(3,885	)		(60,024	)
Earn-out payments		(529	)		—			—
(Payments on) proceeds from senior credit facility		(14,650	)		(10,750	)		46,450
Payments on long-term borrowings		(128	)		(120	)		(139	)
Distribution to noncontrolling interest		(271	)		(136	)		(226	)
Payments of debt issuance costs		(30	)		(30	)		(2,352	)
Payments on capital leases		(531	)		(983	)		(1,550	)
Tax benefit related to stock option exercise		1,446			535			878
Net cash used in financing activities		(12,920	)		(14,954	)		(16,241	)
Effect of exchange rate changes on cash and cash equivalents		169			228			(492	)
(Decrease) in cash and cash equivalents		(951	)		(45	)		(165	)
Cash and cash equivalents at beginning of year		8,256			8,301			8,466
Cash and cash equivalents at end of year	$	7,305		$	8,256		$	8,301
Cash paid for:
Interest	$	5,097		$	5,951		$	8,686
Income taxes		7,270			2,938			2,564

See Notes to Consolidated Financial Statements.

9

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2010, 2009 and 2008

(In thousands except share and per share data)

Note A.   Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and variable interest entities in which the Company is the primary beneficiary. Noncontrolling interest recorded in the consolidated statement of income is the interest in consolidated VIEs not controlled by the Company. We have interests in twelve joint ventures and one limited liability company. The twelve joint ventures each operate between one and thirty-three parking facilities. The limited liability company was formed to collect and distribute parking facility data for a fee. Of the thirteen variable interest entities, seven are consolidated into our financial statements, and six are single purpose entities where the Company is not the primary beneficiary and therefore has a noncontrolling interest as power is shared. Investments in variable interest entities where the Company is not the primary beneficiary are accounted for under the equity method. All significant intercompany profits, transactions and balances have been eliminated in consolidation.

Parking Revenue

The Company’s revenues are primarily derived from leased locations, managed properties and the providing of ancillary services, such as accounting, equipment leasing, payments received for exercising termination rights, consulting development fees, gains on sales of contracts, insurance and other value-added services. In accordance with the guidance related to revenue recognition, revenue is recognized when persuasive evidence of an arrangement exists, the fees are fixed or determinable, collectability is reasonably assured and as services are provided. The Company recognizes gross receipts (net of taxes collected from customers) as revenue from leased locations, and management fees for parking services, as the related services are provided. Ancillary services are earned from management contract properties and are recorded as revenue as those services are provided.

Cost of Parking Services

The Company recognizes costs for leases and non-reimbursed costs from managed facilities as cost of parking services. Cost of parking services consists primarily of rent and payroll related costs.

Advertising Costs

Advertising costs are expensed as incurred and are included in general and administrative expenses. Advertising expenses aggregated $308, $212 and $195 for 2010, 2009 and 2008, respectively.

Stock-Based Compensation

We measure stock-based compensation expense at the grant date, based on the fair value of the award, and the expense is recognized over the requisite employee service period (generally the vesting period) for awards expected to vest (considering estimated forfeitures).

Cash and Cash Equivalents

Cash equivalents represent funds temporarily invested in money market instruments with maturities of one to five days. Cash equivalents are stated at cost, which approximates market value.

10

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Allowance for Doubtful Accounts

Accounts receivable, net of the allowance for doubtful accounts, represents our estimate of the amount that ultimately will be realized in cash. Management reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, using historical collection trends, aging of receivables, and a review of specific accounts, and makes adjustments in the allowance as necessary. Changes in economic conditions or other circumstances could have an impact on the collection of existing receivable balances or future allowance considerations. As of December 31, 2010 and 2009, the Company’s allowance for doubtful accounts was $2,805 and $3,002, respectively.

Leasehold Improvements, Equipment, and Construction in Progress, net

Leasehold improvements and equipment are stated at cost less accumulated depreciation and amortization. Equipment is depreciated on the straight-line basis over the estimated useful lives of approximately 5 years on average. Leasehold improvements are amortized on the straight-line basis over the terms of the respective leases or the service lives of the improvements, whichever is shorter (average of approximately 7 years). Assets under capital leases are amortized on the straight-line basis over the shorter of the terms of the respective leases or the service lives of the asset and is included in depreciation expense.

Costs associated with internal-use software are accounted for in accordance with guidance related to accounting for the costs of computer software developed or obtained for internal use.

Cost of Contracts

Cost of parking contracts are amortized on a straight-line basis over the weighted average contract life which is 9.5 years for the year ending December 31, 2010, 9.4 years for the year ending December 31, 2009 and 10.0 years for the year ending December 31, 2008. Amortization expense was $1,907, $1,762 and $1,344 in 2010, 2009 and 2008, respectively.

Goodwill

We test goodwill for impairment annually and more frequently if circumstances warrant. We determine fair values for each of the reporting units using an income approach. For purposes of the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term outlook for each segment. These assumptions could be adversely impacted by certain of the risks discussed in “Risk Factors” in Item 1A. Actual results may differ from those assumed in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally developed forecasts.

We performed our annual impairment test for goodwill at all of our reporting units in the fourth quarter.. In performing the valuations, we used cash flows, which reflected management’s forecasts and discount rates which reflect the risks associated with the current market. Based on the results of our testing, the fair values of each of our reporting units exceeded their book values; therefore, the second step of the impairment test (in which fair value of each of the reporting unit’s assets and liabilities is measured) was not required to be performed and no goodwill impairment was recognized.

Estimating the fair value of reporting units involves the use of estimates and significant judgments that are based on a number of factors including actual operating results. If current conditions change from those expected, it is reasonably possible that the judgments and estimates described above could change in future periods.

11

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Long Lived and Finite-Lived Intangible Assets

Long-lived assets and identifiable intangibles with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or group of assets to future undiscounted net cash flows expected to be generated by the asset or group of assets. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Debt Issuance Costs

The costs of obtaining financing are capitalized and amortized as interest expense over the term of the respective financing using the interest rate method. Debt issuance costs of $1,558 and $2,165 at December 31, 2010 and 2009, respectively, are included in intangibles and other assets in the consolidated balance sheets and are reflected net of accumulated amortization. Amortization expense was $638, $640 and $449 at December 31, 2010, 2009 and 2008, respectively.

Financial Instruments

The carrying values of cash, accounts receivable and accounts payable are reasonable estimates of their fair value due to the short-term nature of these financial instruments. Long-term debt has a carrying value that approximates fair value because these instruments bear interest at market rates.

Foreign Currency Translation

The functional currency of the Company’s foreign operations is the local currency. Accordingly, assets and liabilities of the Company’s foreign operations are translated from foreign currencies into U.S. dollars at the rates in effect on the balance sheet date while income and expenses are translated at the weighted-average exchange rates for the year. Adjustments resulting from the translations of foreign currency financial statements are accumulated and classified as a separate component of stockholders’ equity.

Interest Rate Caps

We do not enter into derivative instruments for any purpose other than cash flow hedging purposes.

In 2006 we entered into an interest rate cap transaction with Bank of America, which allowed us to limit our exposure on a portion of our borrowings under our senior credit facility. Under the rate cap transaction, we received payments from Bank of America each quarterly period to the extent that the prevailing three month LIBOR during that period exceeded our cap rate of 5.75%. The rate cap transaction capped our LIBOR interest rate on a notional amount of $50,000 million at 5.75% for a total of 36 months. The rate cap transaction began as of August 4, 2006 and was settled each quarter on a date that coincided with our quarterly interest payment dates under our senior credit facility. This rate cap transaction was classified as a cash flow hedge, and we calculated the effectiveness of the hedge on a quarterly basis. The ineffective portion of the cash flow hedge was recognized in current period earnings as an increase of interest expense.

Total changes in the fair value of the rate cap transaction for the twelve months ended December 31, 2009 were immaterial. The rate cap transaction expired on August 4, 2009.

On February 22, 2010, we entered into interest rate cap agreements with Wells Fargo Bank N.A. (“Wells Fargo”) and Fifth Third Bank (“Fifth Third”), allowing us to limit our exposure on a portion of our borrowings under our senior credit facility (“Rate Cap Transactions”). Pursuant to two separate letter agreements between the Company and Wells Fargo and Fifth Third, respectively, we will receive payments

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

from Wells Fargo and Fifth Third each quarterly period to the extent that the prevailing three month LIBOR during that period exceeds our cap rate of 3.25%. The Rate Cap Transactions are effective March 31, 2010, and will settle each quarter on a date that is intended to coincide with our quarterly interest payment dates under our senior credit facility. The Rate Cap Transactions cap our LIBOR interest rate on a notional amount of $50,000 at 3.25% for a total of 39 months. These Rate Cap Transactions are classified as a cash flow hedge, and we calculate the effectiveness of the hedge on a quarterly basis. The ineffective portion of the cash flow hedge is recognized in current period earnings as an increase of interest expense. The fair value of the interest rate cap at December 31, 2010 is $174 and is included in prepaid expenses.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Insurance Reserves

The Company purchases comprehensive casualty insurance covering certain claims that arise in connection with our operations. In addition, the Company purchases umbrella/excess liability coverage. The Company’s various liability insurance policies have deductibles of up to $250 that must be met before the insurance companies are required to reimburse the Company for costs incurred relating to covered claims. As a result, the Company is, in effect, self-insured for all claims up to the deductible levels. The Company applies the provisions as defined in the guidance related to accounting for contingencies, in determining the timing and amount of expense recognition associated with claims against the Company. The expense recognition is based upon the Company’s determination of an unfavorable outcome of a claim being deemed as probable and capable of being reasonably estimated, as defined in the guidance related to accounting for contingencies. This determination requires the use of judgment in both the estimation of probability and the amount to be recognized as an expense. The Company utilizes historical claims experience along with regular input from third party insurance advisors in determining the required level of insurance reserves. Future information regarding historical loss experience may require changes to the level of insurance reserves and could result in increased expense recognition in the future.

Contingencies

The Company is subject to litigation in the normal course of our business. The Company applies the provisions as defined in the guidance related to accounting for contingencies in determining the recognition and measurement of expense recognition associated with legal claims against the Company. Management uses guidance from internal and external legal counsel on the potential outcome of litigation in determining the need to record liabilities for potential losses and the disclosure of pending legal claims.

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In December 2010, the Financial Accounting Standards Board (“FASB”) issued updated accounting guidance related to the disclosure of supplementary pro forma information for business combinations to specify that if a company presents comparative financial statements, it should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current period, occurred at the beginning of the comparable prior annual reporting period. This guidance is effective prospectively for business combinations for which the acquisition date in, on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The Company does not expect the provisions of this update to have a material effect on its consolidated financial statements.

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In December 2010, the FASB issued updated accounting guidance to modify Step 1 of the goodwill impairment test; requiring companies with reporting units with zero or negative carrying amounts to perform Step 2 of the goodwill impairment analysis if it is more likely than not that a goodwill impairment exists. This guidance is effective for fiscal years beginning after December 15, 2010. Early adoption is not permitted. This guidance is not expected to impact the Company.

Accounting Standards Adopted

In June 2009, the FASB updated the accounting standards related to the consolidation of variable interest entities. This new guidance requires a qualitative approach to identifying a controlling financial interest in a VIE, and requires an ongoing assessment of whether an entity is a VIE and whether an interest in a VIE makes the holder the primary beneficiary of the VIE. The updated accounting guidance is effective for annual reporting periods beginning after November 15, 2009. The Company’s adoption of this updated accounting guidance on January 1, 2010 did not impact the financial condition or results of operations of the Company.

In January 2010, the FASB issued a new accounting standard which requires new disclosures and clarifies certain existing disclosure requirements about fair value measurements. The majority of the provisions of this update are effective for interim and annual reporting periods beginning after December 15, 2009. The adoption of this standard did not have a material impact on the Company’s financial statements.

Reclassification

Certain amounts previously presented in the financial statements of prior periods have been reclassified to conform to current year presentation.

Note B.   Common and Preferred Stock

On April 28, 2010, our stockholders approved the charter amendment increasing the Company’s number of shares of common stock authorized for issuance under the certificate of incorporation by 28,700,000 shares, and increasing the number of shares of preferred stock from ten to 5,000,000. The amount of total authorized capital stock following the amendment is 55,000,000 shares, which includes 50,000,000 shares of common stock with a $0.001 par value and 5,000,000 shares of preferred stock with a $0.01 par value. The amendment was filed with the State of Delaware on April 29, 2010.

Note C.   Net Income Per Common Share

Companies are required to present basic and diluted earnings per share. Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is based upon the weighted average number of shares of common stock outstanding for the period plus dilutive potential common shares, including stock options and restricted stock units using the treasury-stock method.

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

A reconciliation of the weighted average basic shares outstanding to the weighted average diluted shares outstanding is as follows:

	Year Ended December 31,
	2010		2009		2008
	(In thousands except for share and per share data)
Net income attributable to Standard Parking Corporation	$	16,840	$	14,092	$	19,045
Weighted average basic shares outstanding		15,579,352		15,292,412		17,325,235
Effect of dilutive stock options and restricted stock units		365,310		391,113		406,238
Weighted average diluted shares outstanding		15,944,662		15,683,525		17,731,473
Net income per share:
Basic	$	1.08	$	0.92	$	1.10
Diluted	$	1.06	$	0.90	$	1.07

There were no anti-dilutive options excluded in the computation of diluted earning per share for the year ended December 31, 2010. There were 19,068 anti-dilutive options excluded in the computation of diluted earnings per share for the year ended December 31, 2009 because the options’ exercise prices were greater than the average market price of the common stock. There were no anti-dilutive options for the year ended December 31, 2008.

For the years ended December 31, 2009 and 2008, 9,205 and 18,777 shares, respectively, of performance based restricted stock were not included in the computation of weighted average diluted common share amounts because the number of shares ultimately issuable is contingent on the Company’s performance goals, which were not achieved as of those dates. The plan was completed as of December 31, 2009, and during the second quarter of 2010, all non-awarded shares were returned to the pool of generally available shares available for future use under the Long-Term Incentive Plan.

There are no additional securities that could dilute basic EPS in the future that were not included in the computation of diluted EPS, other than those disclosed.

Note D.   Leasehold Improvements, Equipment and Construction in Progress, net

A summary of leasehold improvements, equipment, and construction in progress and related accumulated depreciation and amortization is as follows:

		December 31
	Ranges of Estimated Useful Life	2010			2009
Equipment	2-10 years	$	30,982		$	28,838
Leasehold improvements	Shorter of lease term or economic		9,642			9,708
Construction in progress	life up to 10 years		6,025			7,543
			46,649			46,089
Less accumulated depreciation and amortization			(29,810	)		(28,644	)
Leasehold improvements, equipment and construction in progress, net		$	16,839		$	17,445

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Depreciation expense was $3,722, $3,832 and $4,403 in 2010, 2009 and 2008, respectively. Depreciation includes losses on abandonments of leasehold improvements and equipment of $53, $369 and $584 in 2010, 2009 and 2008, respectively.

Note E.   Cost of Contracts, net

Cost of contracts represents the contractual rights associated with providing parking services at a managed or leased facility. Cost consists of either capitalized payments made to third parties or the value ascribed to contracts acquired through acquisition. Cost of contracts are amortized over the estimated life of the contracts, including anticipated renewals and terminations.

The balance of cost of contracts is comprised of the following:

	December 31,
	2010			2009
Cost of contracts	$	23,273		$	17,824
Accumulated amortization		(7,645	)		(6,006	)
Cost of contracts, net	$	15,628		$	11,818

The expected future amortization of cost of contracts is as follows:

	Cost of Contract
2011	$	2,160
2012		2,123
2013		2,044
2014		1,911
2015		1,740
2016 and Thereafter		5,650
Total	$	15,628

Amortization expense related to cost of contracts was $1,907, $1,762 and $1,344 for the years ended December 31, 2010, 2009 and 2008 respectively. Amortization includes losses on cost of contracts of $62, $0, and $0 in 2010, 2009 and 2008, respectively. The weighted average useful life is 9.5 years for 2010, 9.4 years for 2009 and 10.0 years for 2008.

Note F.   Acquisitions

2010 Acquisitions

On December 8, 2010, the Company acquired Expert Parking, Inc. and Expert Parking Management, Inc. in a stock purchase transaction for a purchase price in the amount of $5,977, of which $3,597 was paid in cash, net of cash acquired, and $2,380 of estimated earn-out payments to be paid over five years, which are contingent upon achieving certain financial performance targets. Expert Parking, based in Philadelphia, Pennsylvania, operates and manages garages in Pennyslvania and New Jersey.

The net cash paid at the time of the acquisition of $3,597 consisted of accounts receivable of $569, intangible assets with finite lives of $3,150 and goodwill of $3,489, offset by accounts payable of $580, accrued expenses of $757 and long term liabilities of $2,274.

The acquisition represents an acquisition of a business and was accounted for using the purchase method of accounting. The purchase price allocation is based on preliminary estimates. These estimates are subject to revision after the Company completes its fair value analysis. The Company financed the acquisition through

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

additional term borrowings under the senior credit facility and existing cash. The results of operations of this acquisition is included in the Company’s consolidated statement of income from the date of acquisition. This acquisition is not considered material to the Company.

The Company expensed acquisition related costs of $207 in 2010. These costs are included in general and administrative expenses in the income statement. The amount of goodwill that is expected to be deductible for tax purposes is $1,396.

2009 Acquisitions

On July 1, 2009, the Company acquired substantially all of the assets of Gameday Management Group U.S. for a purchase price in the amount of $7,590, of which $2,450 was paid in cash, net of a hold back of $50, and $5,090 of potential earn-out payments of which $529 have been paid as of December 31, 2010. Gameday Management, based in Orlando, Florida, plans and operates transportation and parking systems for major stadiums and sporting events. Among the assets acquired is Gameday’s Click and Park online parking and traffic management system, which enables customers to purchase reserved parking online in advance of an event. The acquisition represents an acquisition of a business and was accounted for using the purchase method of accounting. This acquisition is not considered material to the Company.

The purchase price allocation in intangible assets with finite lives is $3,830 and goodwill is $3,760. The Company engaged a third-party valuation firm to assist in determining the fair value analysis of certain assets acquired and the contingent consideration. The Company financed the acquisition through additional term borrowings under the senior credit facility and existing cash. The results of operations of this acquisition are included in the Company’s consolidated statement of income from the date of acquisition.

The Company expensed acquisition related costs of $23 in 2010 and $178 in 2009. These costs are included in general and administrative expenses in the income statement. The amount of goodwill that is expected to be deductible for tax purposes is $1,504.

After the December 31, 2009 financial statements were issued, we received the final valuation report from a third-party valuation firm. After considering the results of that valuation report, we have determined the value of certain assets and obligations acquired as part of the acquisition with Gameday Management to be $3,830 and $5,090, respectively. The acquired carrying amount of certain assets was retrospectively increased by $989 as of July 1, 2010, due to this new information, with a corresponding decrease to goodwill. The carrying amount of the contingent consideration was retrospectively increased by $2,249, due to this new information, with a corresponding increase to goodwill. The amortization expense for the retroactive adjustment to certain assets was determined to be immaterial and was not retroactively recorded for the year ended December 31, 2009.

Note G.   Fair Value Measurement

The Company applies the accounting standards for fair value measurements and disclosures for its financial assets and financial liabilities. The guidance requires disclosures about assets and liabilities measured at fair value. The Company’s financial assets relate to the interest rate cap of $174 and the Company’s financial liabilities relate to contingent acquisition consideration payments of $6,807.

The accounting guidance for fair value measurements and disclosures includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels:

•  Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.

•  Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data.

•  Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The significant inputs used to derive the fair value of the contingent acquisition consideration include financial forecasts of future operating results, the probability of reaching the forecast and the associated discount rate. The weighted average probability of the contingent acquisition consideration ranges from 63% to 125%, with a weighted average discount rate of 13%. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis and the basis of measurement at December 31, 2010:

	Total Fair Value
	Measurement			Level 1		Level 2		Level 3
Assets:
Interest Rate Cap	$	174		$	—	$	174	$	—
Liabilities:
Contingent acquisition consideration	$	(6,807	)	$	—	$	—	$	(6,807	)

The following table provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3):

	Due to Seller
Balance at December 31, 2009	$	(5,090	)
Increase related to new acquisitions		(2,400	)
Payment of contingent consideration		529
Change in fair value		154
Balance at December 31, 2010	$	(6,807	)

For the year ended December 31, 2010, the Company recorded adjustments to the original contingent consideration obligation recorded upon the acquisition of Gameday Management Group U.S. The adjustments were the result of using revised forecasts and updated fair value measurements that adjusted the Company’s potential earn-out payments related to the purchase of this business.

For the year ended December 31, 2010, the Company recognized a benefit of $154 in general and administrative expenses in the statement of income due to the change in fair value measurements using a level three valuation technique.

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note H.   Borrowing Arrangements

Long-term borrowings, in order of preference, consist of:

		Amount Outstanding
		December 31,		December 31,
	Due Date	2010		2009
	(In thousands)
Senior credit facility	June 2013	$	95,200	$	109,850
Capital lease obligations	Various		1,525		2,056
Obligations on Seller notes and other	Various		1,177		1,305
			97,902		113,211
Less current portion			673		662
		$	97,229	$	112,549

Senior Credit Facility

On July 15, 2008, we amended and restated our credit facility.

The $210,000 revolving senior credit facility will expire on June 29, 2013. The revolving senior credit facility includes a letter of creditsub-facility with a sublimit of $50,000. The $50,000 letter of creditsub-facility does not limit the maximum actual borrowings on the revolving senior credit facility.

This revolving senior credit facility bears interest, at our option, at either (1) LIBOR plus an applicable LIBOR margin of between 2.00% and 3.50% depending on the ratio of our total funded indebtedness to our EBITDA from time to time (“Total Debt Ratio”) or (2) the Base Rate (as defined below) plus an applicable Base Rate Margin of between 0.50% and 2.00% depending on our Total Debt Ratio. We may elect interest periods of one, two, three or six months for LIBOR based borrowings. The Base Rate is the greater of (i) the rate publicly announced from time to time by Bank of America, N.A. as its “prime rate,” or (ii) the overnight federal funds rate plus 0.50%.

Certain financial covenants limit the Company’s capacity to fully draw on its $210,000 million revolving credit facility. Our senior credit facility includes a fixed charge ratio covenant, a total debt to EBITDA ratio covenant, a limit on our ability to incur additional indebtedness, issue preferred stock or pay dividends, and certain other restrictions on our activities. We are required to repay borrowings under our senior credit facility out of the proceeds of future issuances of debt or equity securities and asset sales, subject to certain customary exceptions. Our senior credit facility is secured by substantially all of our assets and all assets acquired in the future (including a pledge of 100% of the stock of our existing and future domestic guarantor subsidiaries and 65% of the stock of our existing and future foreign subsidiaries).

We are in compliance with all of our financial covenants as of December 31, 2010.

The weighted average interest rate on our senior credit facility at December 31, 2010 and 2009 was 2.6% and 3.2%, respectively. The rate includes all outstanding LIBOR contracts, interest rate cap effect and letters of credit. The weighted average interest rate on outstanding borrowings, not including letters of credit, was 2.6% and 3.3% at December 31, 2010 and December 31, 2009, respectively.

At December 31, 2010, we had $16,773 of letters of credit outstanding under the senior credit facility, borrowings against the senior credit facility aggregated $95,200, and we had $45,183 available under the senior credit facility.

We have entered into various financing agreements, which were used for the purchase of equipment.

19

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note I.   Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income, net of tax, for the years ended December 31, 2010 and 2009 are as follows:

	2010			2009
Revaluation of interest rate cap	$	(379	)	$	—
Effect of foreign currency translation		482			313
Total	$	103		$	313

Note J.   Income Taxes

The components of income tax expense (benefit) for the years ended December 31, 2010, 2009 and 2008 were as follows:

	2010			2009		2008
Current provision:
U.S. federal	$	5,958		$	2,778	$	2,797
Foreign		682			250		401
State		1,238			735		696
Total current		7,878			3,763		3,894
Deferred provision:
U.S. federal		2,497			4,133		6,961
Foreign		(96	)		—		—
State		476			369		767
Total deferred		2,877			4,502		7,728
Income tax expense	$	10,755		$	8,265	$	11,622

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

components of the Company’s deferred tax assets and liabilities as of December 31, 2010 and 2009 are as follows:

	2010			2009
Deferred tax assets:
Net operating loss carry forwards	$	4,947		$	6,395
Accrued expenses		9,079			7,506
Accrued compensation		5,371			4,339
Accrued lease obligations		—			37
Other		253			—
Gross deferred tax assets		19,650			18,277
Less: valuation allowance		(318	)		(369	)
Total deferred tax asset		19,332			17,908
Deferred tax liabilities:
Prepaid expenses		(253	)		(908	)
Undistributed foreign earnings		(1,100	)		(1,008	)
Tax over book depreciation and amortization		(1,849	)		601
Tax over book goodwill amortization		(23,357	)		(21,287	)
Other		(97	)		—
Total deferred tax liabilities		(26,656	)		(22,602	)
Net deferred tax liability	$	(7,324	)	$	(4,694	)

Amounts recognized on the balance sheet consist of:

	2010			2009
Deferred tax asset, current	$	2,313		$	3,457
Deferred tax (liability), long term		(9,637	)		(8,151	)
Net deferred tax liability	$	(7,324	)	$	(4,694	)

The accounting guidance for accounting for income taxes requires that we assess the realizability of deferred tax assets at each reporting period. These assessments generally consider several factors including the reversal of existing temporary differences, projected future taxable income, and potential tax planning strategies. We have valuation allowances totaling $318 and $369 at December 31, 2010 and 2009, respectively, related to our state net operating loss carryforwards (NOL’s) that we believe are not likely to be realized based upon our estimates of future state taxable income limitations of the use of our state NOL’s, and the carryforward life over which the state tax benefit will be realized.

At December 31, 2010, the Company had $12,060 of gross federal net operating loss (NOLs) carryforwards, which will expire in the years 2023 through 2024, and $726 of tax effected state net operating loss (NOLs) carryforwards which will expire 2011 through 2026. As a result of the initial public offering completed in June of 2004, an ownership change occurred under Internal Revenue Code Section 382 which limits our ability to use pre-change NOLs to reduce future taxable income. Additionally, a second ownership change occurred in May 2009, however, since the fair market value of the Company’s shares were significantly higher than at the time of the initial public offering, there was no change in the applicable Section 382 limitation that limits our ability to utilize pre-change NOLs.

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Since 2005, the Company has treated its investment in its Canadian subsidiary as non-permanent in duration and provided taxes on the undistributed Canadian earnings under the applicable accounting guidance. In 2010 the Company reassessed the treatment of the undistributed earnings of its Canadian subsidiary and determined that approximately $1,600 of Canadian earnings are permanently reinvested to meet the Canadian subsidiary’s working capital requirements. The Company has provided taxes for the remaining undistributed earnings of its Canadian subsidiary in excess of the permanently reinvested amount.

A reconciliation of the Company’s reported income tax provision (benefit) to the amount computed by multiplying book income/(loss) before income taxes by the statutory United States federal income tax rate for the years ended December 31, 2010, 2009 and 2008 is as follows:

	2010			2009			2008
Tax at statutory rate	$	9,752		$	7,868		$	10,733
Permanent differences		464			447			369
State taxes, net of federal benefit		1,314			933			1,498
Effect of foreign tax rates		(24	)		(86	)		(10	)
Recognition of tax credits		(526	)		(929	)		(844	)
Other		(174	)		119			28
		10,806			8,352			11,774
Change in valuation allowance		(51	)		(87	)		(152	)
Income tax expense	$	10,755		$	8,265		$	11,622

Income taxes paid in aggregate to United States federal, state and Canadian tax authorities was $7,270, $2,938 and $2,564 in 2010, 2009 and 2008, respectively.

As of December 31, 2010, the Company has not identified any uncertain tax positions that would have a material impact on the Company’s financial position. The Company recognizes potential interest and penalties related to uncertain tax positions, if any, in income tax expense.

The tax years that remain subject to examination for the Company’s major tax jurisdictions at December 31, 2010 are shown below:

2004 — 2009	United States — federal income tax
2004 — 2009	United States — state and local income tax
2006 — 2009	Canada

Note K.   Benefit Plans

The Company offers deferred compensation arrangements for certain key executives and sponsors an employees’ savings and retirement plan in which certain employees are eligible to participate. Subject to their continued employment by the Company, certain employees offered supplemental pension arrangements will receive a defined monthly benefit upon attaining age 65. At December 31, 2010 and 2009, the Company has accrued $3,154 and $3,146, respectively, representing the present value of the future benefit payments. Expenses related to these plans amounted to $154, $217, and $154 in 2010, 2009 and 2008, respectively.

Participants in the savings and retirement plan may elect to contribute a portion of their compensation to the plan. The Company, contributes an amount in cash or other property as required by the plan. Expenses related to these plans amounted to $951, $897, and $904 in 2010, 2009 and 2008, respectively.

The Company also offers a non-qualified deferred compensation plan. This plan allows certain employees to defer a portion of their compensation, limited to a maximum of $50 per year, to be paid to the participants

22

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

upon separation of employment or distribution date selected by employee. To support the non-qualified deferred compensation plan, the Company has elected to purchase Company owned life insurance (“COLI”) policies on certain plan participants. The cash surrender value of the COLI policies is designed to provide a source for funding the accrued liability. As of December 31, 2010 and 2009, the cash surrender value of the COLI policies is $2,830 and $1,757, respectively and is included in intangible and other assets, net on the consolidated balance sheet. The liability for the non-qualified deferred compensation plan is included in other long-term liabilities and was $2,960 and $1,690 as of December 31, 2010 and 2009, respectively.

The Company also contributes to three multi-employer defined contribution and eight multi-employer defined benefit plans which cover certain union employees. Expenses related to these plans were $552, $572 and $575 in 2010, 2009 and 2008, respectively.

Note L.   Leases and Contingencies

The Company operates parking facilities under operating leases expiring on various dates, generally prior to 2019. Certain of the leases contain options to renew at the Company’s discretion.

Total future annual rent expense is not determinable as a portion of such future rent is contingent based on revenues. At December 31, 2010, the Company’s minimum rental commitments, excluding contingent rent provisions under all non-cancelable operating leases, are as follows:

2011(1)	$	35,147
2012		23,590
2013		15,949
2014		7,913
2015		4,964
2016 and thereafter,		12,097
	$	99,660

(1) $9,445 is included in 2011’s minimum commitments for leases that expire in less than one year.

Rent expense, including contingent rents, was $101,623, $101,634 and $110,134 in 2010, 2009 and 2008, respectively.

Contingent rent expense was $53,211, $53,513 and $70,976 in 2010, 2009 and 2008, respectively. Contingent rent expense consists primarily of percentage rent payments, which will cease at various times as certain leases expire.

We enter into contingent purchase price arrangements from time to time for our business combinations and depending upon the date of the business combination, some of our contingent purchase price arrangements are not reflected in our consolidated balance sheet as those acquisitions occurred prior to the adoption of the most recent guidance on business combinations which now requires these to be recorded on the date of the acquisition. Our contingent payment obligations outstanding under previous business combination rules totaled $908, as of December 31, 2010, assuming all performance targets would be achieved as of December 31, 2010, and on an aggregate undiscounted basis. Such contingent payments will be accounted for as additional purchase price if the performance criteria is achieved; accordingly, this contingent payment obligation is not recorded at December 31, 2010. We have recorded a contingency obligation for acquisitions subsequent to the adoption of the most recent guidance on business combinations, in the amount of $6,807, of which $5,636 is included in the other long-term liabilities and $1,171 is included in accrued expenses at December 31, 2010.

23

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note M.   Management Contracts and Related Arrangements with Affiliates

We entered into a consulting agreement with D&E Parking that became effective on May 1, 2007. Edward Simmons, an executive officer of Standard Parking, has an ownership interest in D&E. This consulting agreement was terminated on April 30, 2009. Per the terms of the agreement, consideration for services provided was $250 per year. In addition, the consultant was eligible for a consultant fee of up to $50 per year. In consideration of the services provided by D&E under this arrangement, we paid D&E $128 in 2009.

On December 31, 2000, we sold, at fair market value, certain contract rights to D&E. In July 2007, we bought back certain contract rights, representing five locations. The Company continued to operate an additional location through January 2008, at which time the location was sold to an unrelated third party. We received net management fees and reimbursement for support services in connection with the operation of the parking facilities from D&E. We recorded net management fees from D&E of $4 in 2008.

In 2010, 2009 and 2008, Standard Parking provided property management services for twenty separate retail shopping centers and commercial office buildings in which D&E has an ownership interest. In consideration of the property management services we provided for these twenty properties, we recorded net management fees totaling $634, $689 and $632 in 2010, 2009 and 2008, respectively.

In 2010 and 2009, our wholly owned subsidiary, SP Plus Security, Inc., formerly known as Preferred Response Security Services, Inc., provided security services for two retail shopping centers owned by D&E and one retail shopping center in 2008. We recorded net management fees amounting to $30 for these security services in 2010, $30 in 2009 and $34 in 2008. We provided sweeping and power washing for one retail shopping facility in which D&E has ownership interest in 2010 and two retail shopping facilities in which D&E has ownership in 2009 and 2008. For these services we recorded net management fees totaling $1 in 2010, $1 in 2009 and $9 in 2008.

On June 2, 2004, we entered into a registration rights agreement with Steamboat Industries LLC, our former parent company and an affiliate of Mr. Holten (“Steamboat”). Pursuant to the registration rights agreement, Steamboat exercised its demand registration rights in April 2009. No registration statement was filed pursuant to the demand made by Steamboat.

On May 15, 2009, Steamboat transferred all of its rights under the registration rights agreement to GSO Special Situations Fund LP, GSO Special Situations Overseas Master Fund Ltd., GSO Special Situations Overseas Benefit Plan Fund Ltd., GSO Capital Opportunities Fund LP, and CML VII, LLC. (collectively, the “Significant Stockholders”) together with substantially all of its Standard Parking common stock, and the Significant Stockholders agreed in writing to be bound by the terms of this agreement. Timothy J. White, one of our directors, is a Senior Managing Director and Co-Head of Mezzanine Investing and Head of Private Equity Investing for GSO Capital Partners LP, an affiliate of the GSO funds that are Significant Stockholders. Pursuant to the registration rights agreement, the Significant Stockholders exercised their demand registration rights before such rights terminated on May 27, 2009, and a shelf registration statement onForm S-3 was filed pursuant to the Significant Stockholders’ demand notice to register all of the 7,581,842 shares of Standard Parking common stock that they held. On November 9, 2009, our Company and the Significant Stockholders entered into Amendment No. 1 to Registration Rights Agreement to cause the registration statement to remain effective for a period of two years from the date that it became effective, which was October 6, 2009. Accordingly, we were required to cause the registration statement to remain effective until October 6, 2011 or until all 7,581,842 registered shares have been distributed, whichever occurs first. The registration rights terminated because these shares of common stock were sold in a public offeringand/or the Significant Stockholders’ shares all became eligible for sale under Rule 144.

On November 9, 2009, we entered into an underwriting agreement with the Significant Stockholders and Credit Suisse Securities (USA) LLC and William Blair & Company, L.L.C., as representatives for the several underwriters, relating to the public offering of up to 6,592,906 shares of our common stock by the Significant

24

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Stockholders. The Significant Stockholders also granted the underwriters a30-day option to purchase an additional 988,936 shares of our common stock to cover over-allotments, if any. The underwriting agreement included customary representations, warranties and covenants by us and the Significant Stockholders. It also provided for customary indemnification by each of our Company, the Significant Stockholders and the underwriters against certain liabilities and customary contribution provisions in respect of those liabilities. Of the 7,581,842 registered shares, the Significant Stockholders sold 6,819,692 shares pursuant to the registration statement in 2009. An additional 580,032 shares were sold by certain significant stockholders pursuant to the registration statement in 2010. We did not receive any proceeds from the sale of shares by the Significant Stockholders. In 2009, we incurred $1,700 of legal, accounting, registration and related expenses in connection with Steamboat’s and the Significant Stockholders’ registration demand, the related underwriting agreements, and costs and expenses associated with the loss of control by our former parent, Steamboat.

Note N.   Legal Proceedings

We are subject to litigation in the normal course of our business. The outcomes of legal proceedings and claims brought against us and other loss contingencies are subject to significant uncertainty. We accrue a charge against income when our management determines that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. In addition, we accrue for the authoritative judgments or assertions made against us by government agencies at the time of their rendering regardless of our intent to appeal. In determining the appropriate accounting for loss contingencies, we consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. We regularly evaluate current information available to us to determine whether an accrual should be established or adjusted. Estimating the probability that a loss will occur and estimating the amount of a loss or a range of loss involves significant judgment.

Note O.   Capital Leases

Property under capital leases included within equipment is as follows:

	December 31,
	2010			2009
Service vehicles	$	3,739		$	4,043
Parking equipment		64			64
		3,803			4,107
Less: Accumulated depreciation		(2,473	)		(2,120	)
	$	1,330		$	1,987

Amortization expense was $561, $844 and $1,432 in 2010, 2009 and 2008, respectively, which is included in depreciation expense.

25

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Future minimum lease payments under capital leases at December 31, 2010 as well as the present value of the minimum lease payments through expiration are as follows:

2011	$	573
2012		648
2013		403
Total minimum payments		1,624
Less: Amounts representing interest		99
Present value of minimum payments		1,525
Less: Current portion		537
Total long-term portion	$	988

Note P.   Goodwill and Intangible Assets

Goodwill is assigned to respective segments based upon the specific Region where the assets acquired and associated goodwill resided.

The following table reflects the changes in the carrying amounts of goodwill by reported segment for the years ended December 31, 2010 and 2009.

	Region			Region		Region		Region
	One			Two		Three		Four		Total
Balance as of December 31, 2008	$	61,693		$	4,061	$	35,219	$	22,577	$	123,550
Acquired during the period		—			3,760		—		—		3,760
Adjustments to purchase price		(104	)		—		—		—		(104	)
Contingency payments related to acquisitions		260			—		8		—		268
Foreign currency translation		—			639		—		—		639
Balance as of December 31, 2009	$	61,849		$	8,460	$	35,227	$	22,577	$	128,113
Acquired during the period		3,489			—		—		—		3,489
Contingency payments related to acquisitions		326			—		14		—		340
Foreign currency translation		—			254		—		—		254
Balance as of December 31, 2010	$	65,664		$	8,714	$	35,241	$	22,577	$	132,196

Note Q.   Long-Term Receivables, net

Long-term receivables, net, consist of the following:

	Amount Outstanding
	December 31,			December 31,
	2010			2009
Bradley International Airport
Deficiency payments	$	12,070		$	9,606
Other Bradley related, net		3,203			3,203
Valuation allowance		(2,484	)		(2,484	)
Total long-term receivables, net	$	12,789		$	10,325

26

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Agreement

We are entered into a25-year agreement with the State of Connecticut (“State”) that expires on April 6, 2025, under which we operate the surface parking and 3,500 garage parking spaces at Bradley International Airport located in the Hartford, Connecticut metropolitan area. The Company manages the facility for which it is expected to receive a management fee.

The parking garage was financed on April 6, 2000 through the issuance of $53,800 of State of Connecticut special facility revenue bonds, representing $47,700 non-taxable Series A bonds and a separate taxable issuance of $6,100 Series B bonds. The Series B bonds were retired on July 1, 2006 according to the terms of the indenture. The Bradley agreement provides that we deposit with a trustee for the bondholders all gross revenues collected from operations of the surface and garage parking, and from these gross revenues the trustee pays debt service on the special facility revenue bonds outstanding, operating and capital maintenance expense of the surface and garage parking facilities excluding our management fee discussed below, and specific annual guaranteed minimum payments to the state. Principal and interest on the Bradley special facility revenue bonds increase from approximately $3,600 in lease year 2002 to approximately $4,500 in lease year 2025. Annual guaranteed minimum payments to the State increase from approximately $8,300 in lease year 2002 to approximately $13,200 in lease year 2024. The annual minimum guaranteed payment to the State by the trustee for the twelve months ended December 31, 2010 and 2009 was $9,935 and $9,731, respectively.

All of the cash flow from the parking facilities are pledged to the security of the special facility revenue bonds and are collected and deposited with the bond trustee. Each month the bond trustee makes certain required monthly distributions, which are characterized as “Guaranteed Payments.” To the extent the monthly gross receipts generated by the parking facilities are not sufficient for the trustee to make the required Guaranteed Payments, we are obligated to deliver the deficiency amount to the trustee. Additionally, the Guaranteed Payments are required to be paid before we are reimbursed for deficiency payments or management fees.

The following is the list of Guaranteed Payments:

•  Garage and surface operating expenses,

•  Principal and interest on the special facility revenue bonds,

•  Trustee expenses,

•  Major maintenance and capital improvement deposits; and

•  State minimum guarantee.

However, to the extent there is a cash surplus in any month during the term of the Lease, we have the right to be repaid the principal amount of any and all deficiency payments, together with actual interest expenses and a premium, not to exceed 10% of the initial deficiency payment. We calculate and record interest income and premium income in the period the associated deficiency payment is received from the trustee.

Deficiency Payments

To the extent that monthly gross receipts are not sufficient for the trustee to make the required payments, we are obligated pursuant to our agreement, to deliver the deficiency amount to the trustee within three business days of being notified. We are responsible for these deficiency payments regardless of the amount of utilization for the Bradley parking facilities. The deficiency payments represent contingent interest bearing advances to the trustee to cover operating cash flow requirements. To the extent sufficient funds are available in the appropriate fund, the trustee is then directed by the State to reimburse us for deficiency payments up to the amount of the calculated surplus.

27

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In the year ended December 21, 2010, we made deficiency payments (net of repayments received) of $2,464. In addition, in 2010 we received $31 for premium income on deficiency payments to the trustee. We did not record or receive any interest on deficiency repayments from the trustee in the year ended December 31, 2010. In the year ended December 31, 2009, we made deficiency payments (net of repayments received) of $3,645 and we did not record or receive any interest or premium income on deficiency repayments from the trustee. The receivable from the trustee for interest and premium income related to deficiency repayments was $0 as of December 31, 2010 and 2009.

The payments, if any, are recorded as a receivable by us for which we are reimbursed from time to time as provided in the trust agreement. As of December 31, 2010, and December 31, 2009, we have a receivable of $12,070 and $9,606, respectively, compromised of cumulative deficiency payments to the trustee, net of reimbursements. We believe these advances to be fully recoverable, as the Construction, Financing and Operating Special Facility Lease Agreement, which governs reimbursement of Guarantor Payments places no time restriction on the company’s right to reimbursement, and therefore have not recorded a valuation allowance for them. We do not guarantee the payment of any principal or interest on any debt obligations of the State of Connecticut or the trustee.

Per the Construction, Financing and Operating Special Facility Lease Agreement, which governs reimbursement of deficiency payments, places no time restriction or language exists limiting our right to reimbursement in the Lease.

The following table reconciles the beginning and ending balance of the receivable for each year presented:

	December 31,
	2010			2009
Deficiency payments:
Balance at beginning of year	$	9,606		$	5,961
Deficiency payments made		2,724			3,645
Deficiency repayment received		(260	)		—
Balance at end of year		12,070			9,606
Other Bradley related		3,203			3,203
Valuation allowance		(2,484	)		(2,484	)
Total long-term receivables	$	12,789		$	10,325

Compensation

In addition to the recovery of certain general and administrative expenses incurred, our agreement provides for an annual management fee payment which is based on three operating profit tiers calculated for each year during the term of the agreement. The management fee is further apportioned 60% to us and 40% to an un-affiliated entity. To the extent that funds are available for the trustee to make a distribution, the annual management fee is paid when sufficient cash is paid after the Guaranteed Payments (as defined in our agreement), and after the repayment of all deficiency payments, including accrued interest and premium. However, our right to the management fee accrues each year during the term of the agreement and is paid when sufficient cash is available for the trustee to make a distribution.

The annual management fee is paid after the repayment of all deficiency payments, including accrued interest and premium, therefore due to the existence and length of time for repayment of the deficiency amounts to the Company, no management fees have been recognized. Management fees will be recognized in accordance with SAB 104 when “collectability is reasonably assured”.

28

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Cumulative management fees of $4,800 have not been recognized as of December 31, 2010 and no management fees were recognized during 2010, 2009 or 2008.

Note R.   Stock Repurchases

2009 Stock Repurchases

In July 2008, our Board of Directors authorized us to repurchase shares of our common stock, on the open market or through private purchases, up to $60,000 in aggregate.

During the first quarter of 2009, we repurchased 213,301 shares at an average price of $18.21 per share, including average commissions of $0.01 per share, on the open market. The total value of the first quarter transactions was $3,885. We retired 200,650 shares during the first quarter of 2009, and retired and the remaining 12,651 shares in April 2009.

We did not make any share repurchases subsequent to the first quarter of 2009. As of December 31, 2010, $18,973 remained available for repurchase under 2008 authorization by the Board of Directors.

Note S.   Domestic and Foreign Operations

Business Unit Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by our chief operating decision maker, in deciding how to allocate resources. Our chief operating decision maker is the Company’s president and chief executive officer.

Each of the operating segments is directly responsible for revenue and expenses related to their operations including direct regional administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the four operating segments. The CODM assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest, taxes, and depreciation and amortization, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate interest and other income, interest expense, depreciation and amortization or taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

Our business is managed based on regions administered by executive vice presidents. The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by regions for the years ended December 31, 2010, 2009, and 2008. Information related to prior periods has been recast to conform to the current regional alignment.

29

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company has provided this business unit segment information for all comparable prior periods. Segment information is summarized as follows (in thousands):

	Year Ended December 31,
				Gross						Gross						Gross
	2010			Margin			2009			Margin			2008			Margin
Revenues(a):
Region One
Lease contracts	$	75,401					$	79,083					$	83,250
Management contracts		48,417						53,329						57,399
Total Region One		123,818						132,412						140,649
Region Two
Lease contracts		2,368						2,637						2,273
Management contracts		25,957						13,192						3,683
Total Region Two		28,325						15,829						5,956
Region Three
Lease contracts		21,418						19,350						24,843
Management contracts		51,847						54,790						53,405
Total Region Three		73,265						74,140						78,248
Region Four
Lease contracts		39,433						39,269						43,782
Management contracts		45,007						32,392						31,645
Total Region Four		84,440						71,661						75,427
Other
Lease contracts		44						102						163
Management contracts		103						(321	)					(304	)
Total Other		147						(219	)					(141	)
Reimbursed management contract revenue		411,148						401,671						400,621
Total revenues	$	721,143					$	695,494					$	700,760
Gross Profit
Region One
Lease contracts	$	4,765			6	%	$	5,227			7	%	$	6,470			8	%
Management contracts		27,194			56	%		27,679			52	%		29,711			52	%
Total Region One		31,959						32,906						36,181
Region Two
Lease contracts		195			8	%		66			3	%		594			26	%
Management contracts		7,271			28	%		4,823			37	%		3,708			101	%
Total Region Two		7,466						4,889						4,302
Region Three
Lease contracts		1,855			8	%		1,855			10	%		3,461			1	%
Management contracts		24,467			47	%		21,621			39	%		26,997			51	%
Total Region Three		26,322						23,476						30,458
Region Four
Lease contracts		2,961			8	%		2,406			6	%		3,512			8	%
Management contracts		16,879			38	%		15,383			47	%		14,208			45	%
Total Region Four		19,840						17,789						17,720
Other
Lease contracts		275			625	%		(10	)		(10	)%		216			133	%
Management contracts		1,039			1,009	%		(291	)		(91	)%		1,919			631	%
Total Other		1,314						(301	)					2,135
Total gross profit		86,901						78,759						90,796
General and administrative expenses		47,878						44,707						47,619
General and administrative expense percentage of gross profit		55	%					57	%					52	%
Depreciation and amortization		6,074						5,828						6,059
Operating income		32,949						28,224						37,118
Other expenses (income):
Interest expense		5,335						6,012						6,476
Interest income		(249	)					(268	)					(173	)
		5,086						5,744						6,303
Income before income taxes		27,863						22,480						30,815
Income tax expense		10,755						8,265						11,622
Net income		17,108						14,215						19,193
Less: Net income attributable to noncontrolling interest		268						123						148
Net income attributable to Standard Parking Corporation	$	16,840					$	14,092					$	19,045

(a) Excludes reimbursed management contract revenue.

30

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Region One encompasses operations in Delaware, District of Columbia, Connecticut, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Region Two encompasses our Canadian operations, event planning and transportation, and our technology based parking and traffic management systems.

Region Three encompasses operations in Arizona, California, Colorado, Hawaii, Louisiana, Nevada, Texas, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Other consists of ancillary revenue that is not specifically identifiable to a region and insurance reserve adjustments related to prior years.

The CODM does not evaluate segments using discrete asset information.

Note T.   Stock-Based Compensation

We measure stock-based compensation expense at the grant date, based on the fair value of the award, and the expense is recognized over the requisite employee service period (generally the vesting period) for awards expected to vest (considering estimated forfeitures).

The Company has an amended and restated Long-Term Incentive Plan that was adopted in conjunction with our IPO in 2004. On February 27, 2008, our Board of Directors approved an amendment to our Long-Term Incentive Plan, subject to shareholder approval, that increased the maximum number of shares of common stock available for awards under the Long-Term Incentive Plan from 2,000,000 to 2,175,000 and extended the Plan’s termination date. Our shareholders approved this Plan amendment on April 22, 2008, and the Plan now terminates twenty years from the date of such approval, or April 22, 2028. Forfeited and expired options under the Plan become generally available for reissuance. At December 31, 2010, 117,902 shares remained available for award under the Plan.

Stock Options and Grants

We use the Black-Scholes option pricing model to estimate the fair value of each option grant as of the date of grant. The volatilities are based on the 90 day historical volatility of our common stock as the grant date. The risk free interest rate is based on zero-coupon U.S. government issues with a remaining term equal to the expected life of the option.

There were no options granted during the years ended December 31, 2010, 2009 and 2008. The Company recognized no stock-based compensation expense related to stock options for the year ended December 31, 2010 as all options previously granted are fully vested. The Company recognized $30 and $2 of stock-based compensation for the years ended December 31, 2009 and 2008, respectively. A total of 9,534 options expired in the third quarter of 2010 with a weighted average exercise price of $17.03. The option expirations are due toout-of-the-money options that were not exercised prior to their expiration date. The expired options were returned to the pool of shares generally available for future use under the Long-Term Incentive Plan.

On April 28, 2010, we authorized vested stock grants to certain directors totaling 12,892 shares. The total value of the grant was $220 and is included in general and administrative expenses. On September 22, 2010, we authorized vested stock grants to certain directors totaling 1,504 shares. The total value of the grant was $25 and is included in general and administrative expenses.

On August 14, 2009, we issued vested stock grants totaling 9,591 shares to certain directors. The total value of the grant was $165 and is included in general and administrative expense.

31

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On January 24, 2008, we issued vested stock grants totaling 1,084 shares to a director. The total value of the grant was $25 and is included in general and administrative expenses.

On April 22, 2008, we issued vested stock grants totaling 18,900 shares to certain directors. The total value of the grant was $385 and is included in general and administrative expenses.

The Company recognized $245, $195 and $411 of stock based compensation expense for the years ended December 31, 2010, 2009 and 2008, respectively, which is included in general and administrative expense. As of December 31, 2010, there was no unrecognized compensation costs related to unvested options.

The following table summarizes the transactions pursuant to our stock option plans for the last three years ended December 31.

						Weighted Average
						Remaining		Aggregate
	Number of			Weighted Average		Contractual Term		Intrinsic
	Shares			Exercise Price		(in Years)		Value
Outstanding at December 31, 2007		809,064		$	4.77
Granted		—			n/a
Exercised		(152,161	)	$	4.75
Forfeited		—			n/a
Outstanding at December 31, 2008		656,903		$	4.77
Granted		—			n/a
Exercised		(105,896	)	$	3.92
Forfeited		—			n/a
Outstanding at December 31, 2009		551,007		$	4.50
Granted		—			n/a
Exercised		(385,027	)	$	4.60
Expired		(9,534	)	$	17.03
Outstanding at December 31, 2010		156,446		$	5.01		2.0	$	2,168
Vested and Exercisable at December 31, 2010		156,446		$	5.01		2.0	$	2,168

At December 31, 2010, 2009 and 2008, options to purchase 156,446, 551,007 and 656,903 shares of common stock, respectively, were exercisable at weighted average exercise prices of $5.01, $4.50 and $4.77 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2010, 2009, and 2008 was $4,630, $1,386, and $2,615, respectively.

There were no nonvested options as of December 31, 2010, 2009 and 2008.

Performance-Based Incentive Program

In December 2006, the Board of Directors adopted a performance-based incentive program under our Long-Term Incentive Plan. This program provided participating executives with the opportunity to earn a combination of stock (50%) and cash (50%) if certain performance targets for pre-tax income and pre-tax free cash flow were achieved. During 2007, certain participating executives became entitled to performance restricted stock based on the stock price at the commencement of the three-year performance cycle(2007-2009), and as a result, 29,698 shares were issued subject to vesting upon the achievement of the performance goals. The plan was completed as of December 31, 2009, at which time a total of 17,677 shares had been released free of restrictions in accordance with the achievement of the cumulative program

32

STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

performance goals. The remaining 12,021 shares were not awarded under the performance-based incentive program and were returned to the pool of shares generally available for future use under the Long-Term Incentive Plan. Of the 12,021 shares that were not awarded, 2,815 shares were retired in 2009 and the remaining 9,206 shares were retired in 2010.

We record stock-based compensation expense for awards with performance conditions based on the probable outcome of that performance condition. The Company recognized no stock-based compensation expense and no cash compensation expense related to the performance-based incentive program for the year ended December 31, 2010. The Company recognized $51 of stock-based compensation expense and $51 of cash compensation expense related to the performance-based incentive program, for the year ended December 31, 2009, which is included in general and administrative expenses. As of December 31, 2010, there is no unrecognized compensation costs related to the performance-based incentive program.

Restricted Stock Units

In March 2008, the Company’s Board of Directors authorized a one-time grant of 750,000 restricted stock units that subsequently were awarded to members of our senior management team on July 1, 2008. In November 2008, an additional 5,000 restricted stock units were also awarded. The restricted stock units vest in one-third installments on each of the tenth, eleventh and twelfth anniversaries of the grant date. The restricted stock unit agreements provide for accelerated vesting upon the recipient reaching their retirement age.

The cost of restricted stock units is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. In accordance with the guidance related to share-based payments, we estimate forfeitures at the time of the grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest.

A summary of the status of the restricted stock units as of December 31, 2010, and changes during the year ended December 31, 2010, is presented below:

			Weighted Average
			Grant-Date
Nonvested Shares	Shares		Fair Value
Nonvested at January 1, 2010		755,000	$	18.26
Granted		—
Vested		—
Forfeited		—
Nonvested at December 31, 2010		755,000	$	18.26

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STANDARD PARKING CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company recognized $2,065 and $2,046 of stock based compensation expense related to the restricted stock units for the year ended December 31, 2010 and 2009, respectively, which is included in general and administrative expense. As of December 31, 2010, there was $7,863 of unrecognized stock-based compensation costs, net of estimated forfeitures, related to the restricted stock units that is expected to be recognized over a weighted average period of approximately 6.9 years. As of December 31, 2009, there were $9,865 of unrecognized stock-based compensation costs, net of estimated forfeitures related to the restricted stock units that were expected to be recognized over a weighted average period of 7.3 years.

Note U.   Hurricane Katrina

On May 2, 2008, we entered into a definitive settlement agreement with our insurance carrier which finalized all of our open claims with respect to Hurricane Katrina. The settlement agreement was for $4,225 of which $2,000 was received previously. We were required to reimburse the owners of the leased and managed locations for property damage of approximately $2,228. After payment of settlement fees, expenses and other amounts due under contractual arrangements, we recorded $1,997 in pre-tax income, of which $1,577 was recorded as revenue and $420 was recorded as a reduction of general and administrative expenses.

34

Exhibit Listing

Exhibit
Number	Description
10.23 +	Deferred Compensation Agreement dated as of August 1, 1999 between the Company and James A. Wilhelm (incorporated by reference to exhibit 10.14 of the Company’s Annual Report on Form 10-K filed for December 31, 1999).
23*	Consent of Independent Registered Public Accounting Firm dated as of March 21, 2011.
31.1*	Section 302 Certification dated March 22, 2011 for James A. Wilhelm, Director, President and Chief Executive Officer (Principal Executive Officer).
31.2*	Section 302 Certification dated March 22, 2011 for G. Marc Baumann, Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer).
31.3*	Section 302 Certification dated March 22, 2011 for Daniel R. Meyer, Senior Vice President Corporate Controller and Assistant Treasurer (Principal Accounting Officer and Duly Authorized Officer).

*	Filed herewith.
+	Management contract or compensation plan, contract or agreement.

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SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

STANDARD PARKING CORPORATION
By:	/s/James A. Wilhelm
	James A. Wilhelm
	Director, President and Chief Executive Officer (Principal Executive Officer)

Date: March 22, 2011

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INDEX TO EXHIBITS

Exhibit
Number	Description
10.23 +	Deferred Compensation Agreement dated as of August 1, 1999 between the Company and James A. Wilhelm (incorporated by reference to exhibit 10.14 of the Company’s Annual Report on Form 10-K filed for December 31, 1999).
23*	Consent of Independent Registered Public Accounting Firm dated as of March 21, 2011.
31.1*	Section 302 Certification dated March 22, 2011 for James A. Wilhelm, Director, President and Chief Executive Officer (Principal Executive Officer).
31.2*	Section 302 Certification dated March 22, 2011 for G. Marc Baumann, Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer).
31.3*	Section 302 Certification dated March 22, 2011 for Daniel R. Meyer, Senior Vice President Corporate Controller and Assistant Treasurer (Principal Accounting Officer and Duly Authorized Officer).

*	Filed herewith.
+	Management contract or compensation plan, contract or agreement.

37