Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2015

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

5.Other Comprehensive Income (Loss)

The following tables present the tax effect on each component of “Other comprehensive income (loss).”

	For the Three Months Ended June 30,
	2015									2014
	Before			Tax			Net			Before			Tax			Net
	Tax			(Expense)			of Tax			Tax			(Expense)			of Tax
	Amount			Benefit			Amount			Amount			Benefit			Amount
	(In thousands)
Foreign currency translation adjustments	$	—		$	—		$	—		$	—		$	—		$	—
Unrealized holding gains (losses) on available-for-sale securities	39,405			(14,490		)	24,915			9,586			(3,502		)	6,084
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(34,310		)	12,529			(21,781		)	(555		)	203			(352		)
Other comprehensive income (loss)	$	5,095		$	(1,961	)	$	3,134		$	9,031		$	(3,299	)	$	5,732

	For the Six Months Ended June 30,
	2015									2014
	Before			Tax			Net			Before			Tax			Net
	Tax			(Expense)			of Tax			Tax			(Expense)			of Tax
	Amount			Benefit (1)			Amount			Amount			Benefit			Amount
	(In thousands)
Foreign currency translation adjustments	$	—		$	—		$	—		$	3,878		$	—		$	3,878
Unrealized holding gains (losses) on available-for-sale securities	46,827			(17,234		)	29,593			19,569			(7,151		)	12,418
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss)	(93,797		)	(28,138		)	(121,935		)	(62		)	23			(39		)
Other comprehensive income (loss)	$	(46,970	)	$	(45,372	)	$	(92,342	)	$	23,385		$	(7,128	)	$	16,257

(1) Prior to December 31, 2012, we had established a valuation allowance against all deferred tax assets that were capital in nature.  At December 31, 2012, it was determined that these deferred tax assets were realizable and the valuation allowance was released, including the valuation allowance related to a specific portfolio of available-for-sale securities for which changes in fair value had historically been recognized as a separate component of “Accumulated other comprehensive income (loss).”  Under the intra-period tax allocation rules, a credit of $63 million was recorded in “Accumulated other comprehensive income (loss)” on our Condensed Consolidated Balance Sheets related to the release of this valuation allowance.

We elected to use the aggregate portfolio method to determine when the $63 million would be released from “Accumulated other comprehensive income (loss)” to “Income tax (provision) benefit, net” in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss).  Under the aggregate portfolio approach, the intra-period tax allocation remaining in “Accumulated other comprehensive income (loss)” is not released to “Income tax (provision) benefit, net” until such time that the specific portfolio of available-for-sale securities that generated the original intra-period allocation is liquidated.  During the first quarter 2015, this specific available-for-sale security portfolio was liquidated and the $63 million credit that was previously recorded in “Accumulated other comprehensive income (loss)” was released to “Income tax (provision) benefit, net.”  This adjustment has no net effect on “Net cash flows from operating activities from continuing operations” or “Total stockholders’ equity (deficit).”

The “Accumulated other comprehensive income (loss)” is detailed in the following table, net of tax.

	Unrealized/
	Recognized
	Gains
Accumulated Other Comprehensive Income (Loss)	(Losses)
	(In thousands)
Balance as of December 31, 2014	$	174,507
Other comprehensive income (loss) before reclassification	29,593
Amounts reclassified from accumulated other comprehensive income (loss)	(121,935		)
Balance as of June 30, 2015	$	82,165