Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Income Tax Benefit (Provision)

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


	Year Ended December 31,
		2014		2013		2012
Current:
U.S. Federal	$	(5,524)	$	25,567	$	55,928
State and local		3,573		976		59,390
Foreign		(220)		(200)		—
Total current		(2,171)		26,343		115,318
Deferred:
U.S. Federal		8,531		(26,981)		(3,325)
State and local		1,745		(1,203)		(18,678)
Total deferred		10,276		(28,184)		(22,003)
Total income tax benefit (provision)	$	8,105	$	(1,841)	$	93,315

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,
	2014		2013		2012
Decrease to unrecognized tax benefits	$	3,062	$	1,952	$	61,470
Interest expense		(1,757)		(1,429)		27,672
Penalties		1,250		521		21,175
Total	$	2,555	$	1,044	$	110,317

Summary of Additional Income Tax Disclosures

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


	Year Ended December 31,
	2014		2013		2012
Tax benefit (provision) on (loss) income from discontinued operations	$	14,482	$	2,995	$	(10,157)
Tax provision on Sale of discontinued operations		—		—		(267,451)
Excess tax benefit from stock-based compensation recorded to paid-in-capital		1,864		(3,128)		16,919
Deferred tax benefit (provision) for adjustments in other comprehensive loss (See Note 4)		4,919		(10,127)		(22,612)

Schedule of Effective Income Tax Rate Reconciliation

The benefit (provision) 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 (loss) income of affiliates because of the effect of the following items (in thousands):


	Year Ended December 31,
	2014		2013		2012
Tax benefit at U.S. Statutory Rate of 35%	$	2,811	$	5,435	$	9,524
Permanent adjustments which change statutory amounts:
State and local income taxes, net of federal income tax		4,497		155		34,605
Equity in net (loss) income of affiliates		526		(13,589)		(12,019)
Extraterritorial income exclusion		3,468		6,177		11,200
Domestic production activity benefit		—		2,317		—
Provision for unrecognized tax benefits		(833)		(332)		46,542
Interest on deferred installment sale		(216)		(1,296)		—
Nondeductible expenses		(1,359)		(762)		(603)
Change in valuation allowance		(624)		(121)		2,311
Federal research and development credit		—		402		99
Foreign income taxes		(143)		(130)		—
Other, net		(22)		(97)		1,656
Total income tax benefit (provision)	$	8,105	$	(1,841)	$	93,315

Unrecognized Tax Benefits

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


	Year Ended December 31,
	2014		2013		2012
Balance at January 1	$	80,527	$	76,080	$	115,293
Increases related to prior year tax positions		2,141		6,755		453
Decreases related to prior year tax positions		(423)		(1,025)		(27)
Decreases as a result of statute expirations		(3,043)		(1,283)		(61,021)
Decreases as a result of tax settlements		(869)		—		(8,184)
Increases related to current year tax positions		—		—		29,566
Balance at December 31	$	78,333	$	80,527	$	76,080

Schedule of Net Deferred Tax Assets

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


	December 31,
	2014		2013
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	122,152	$	132,820
Compensation and benefits		1,790		1,590
Indemnification liabilities		9,114		5,946
Other, net		4,850		4,909
Federal benefit of uncertain tax positions		10,026		10,216
Pension costs		6,752		1,154
Total deferred tax assets before valuation allowance		154,684		156,635
Less valuation allowance		(7,905)		(7,228)
Deferred tax assets net of valuation allowance		146,779		149,407
Deferred tax liabilities:
Deferred installment sale		(12,376)		(37,974)
Investments in and advances to affiliates		(22,082)		(28,848)
Total deferred tax liabilities		(34,458)		(66,822)
Net deferred tax assets	$	112,321	$	82,585

Classification on consolidated balance sheets:
Current deferred tax assets	$	654	$	3,784
Long-term deferred tax assets		112,898		83,708
Other current liabilities		(416)		—
Long term liabilities		(815)		(4,907)
Net deferred tax assets	$	112,321	$	82,585

- 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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