Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Income Tax Benefit (Provision)

The (provision) benefit for income taxes on the loss from continuing operations before income taxes and equity in net income of affiliates consists of the following (in thousands):


	Year Ended December 31,
		2013		2012		2011
Current:
U.S. Federal	$	25,567	$	55,928	$	(1,212)
State and local		976		59,390		305
Foreign		(200)		—		—
Total current		26,343		115,318		(907)
Deferred:
U.S. Federal		(26,981)		(3,325)		(32,670)
State and local		(1,203)		(18,678)		(7,798)
Total deferred		(28,184)		(22,003)		(40,468)
Total income tax (provision) benefit	$	(1,841)	$	93,315	$	(41,375)

Summary of Uncertain Tax Positions Included in Income Tax Provision

Our current tax (provision) benefit includes a decrease (increase) to our liability for UTPs for (in thousands):


	Year Ended December 31,
	2013		2012		2011
Decrease to unrecognized tax benefits	$	1,952	$	61,470	$	2,198
Interest expense		(1,429)		27,672		(4,880)
Penalties		521		21,175		627
Total	$	1,044	$	110,317	$	(2,055)

Summary of Additional Income Tax Disclosures

In addition to the (provision) benefit for income taxes on the loss from continuing operations presented above, we also recorded the following items (in thousands):


	Year Ended December 31,
	2013		2012		2011
Tax benefit (provision) on (loss) income from discontinued operations	$	2,995	$	(10,157)	$	(47,770)
Tax provision on Sale of discontinued operations		—		(267,451)		—
Excess tax benefit from stock-based compensation recorded to paid-in-capital		(3,128)		16,919		1,198
Deferred tax (provision) benefit for adjustments in other comprehensive income (loss) (See Note 4)		(10,127)		(22,612)		39,416

Schedule of Effective Income Tax Rate Reconciliation

The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. Federal income tax rate on the loss from continuing operations before income taxes and equity in net income of affiliates because of the effect of the following items (in thousands):


	Year Ended December 31,
	2013		2012		2011
Tax benefit at U.S. Statutory Rate of 35%	$	5,435	$	9,524	$	4,321
Permanent adjustments which change statutory amounts:
State and local income taxes, net of federal income tax		155		34,605		(2,802)
Equity in net income of affiliates		(13,589)		(12,019)		(37,215)
Extraterritorial income exclusion		6,177		11,200		—
Domestic production activity benefit		2,317		—		—
Provision for unrecognized tax benefits		(332)		46,542		(1,137)
Interest on deferred installment sale		(1,296)		—		—
Nondeductible expenses		(762)		(603)		(1,906)
Change in valuation allowance		(121)		2,311		684
Federal research and development credit		402		99		—
Other, net		(227)		1,656		(3,320)
Total income tax (provision) benefit	$	(1,841)	$	93,315	$	(41,375)

Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2013		2012		2011
Balance at January 1	$	76,080	$	115,293	$	132,211
Increases related to prior year tax positions		6,755		453		1,220
Decreases related to prior year tax positions		(1,025)		(27)		(24,745)
Decreases as a result of statute expirations		(1,283)		(61,021)		(1,629)
Decreases as a result of tax settlements		—		(8,184)		(7,606)
Increases related to current year tax positions		—		29,566		15,842
Balance at December 31	$	80,527	$	76,080	$	115,293

Schedule of Net Deferred Tax Assets

The significant components of the net deferred income tax assets are (in thousands):


	December 31,
	2013		2012
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	132,820	$	131,359
Compensation and benefits		1,590		3,766
Indemnification liabilities		5,946		7,440
Other, net		4,909		5,450
Federal benefit of uncertain tax positions		10,216		9,931
Pension costs		1,154		15,746
Total deferred tax assets before valuation allowance		156,635		173,692
Less valuation allowance		(7,228)		(7,108)
Deferred tax assets net of valuation allowance		149,407		166,584
Deferred tax liabilities:
Deferred installment sale		(37,974)		(38,818)
Investments in and advances to affiliates		(28,848)		(9,883)
Total deferred tax liabilities		(66,822)		(48,701)
Net deferred tax assets	$	82,585	$	117,883

Classification on consolidated balance sheets:
Current deferred tax assets	$	3,784	$	4,165
Long-term deferred tax assets		83,708		117,381
Other current liabilities		—		(3,663)
Long term liabilities		(4,907)		—
Net deferred tax assets	$	82,585	$	117,883

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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