19.

INCOME TAXES

Loss before provision for income taxes by geographic area is as follows:


	For the year ended December 31,
	2011			2010			2009
	(in thousands)
Domestic	$	(118,671	)	$	(193,048	)	$	(140,425	)
Foreign		(6,108	)		(368	)		(202	)

Total	$	(124,779	)	$	(193,416	)	$	(140,627	)

The provision for income taxes consists of the following components:


	For the year ended December 31,
	2011			2010			2009
	(in thousands)
Current provision for taxes:
Federal	$	—		$	—		$	(127	)
Foreign		1,608			897			69
State		2,191			845			730

Total current		3,799			1,742			672


Deferred (benefit) provision for taxes:
Federal income taxes		(38,303	)		(59,363	)		(46,835	)
State and local taxes		(5,111	)		(6,083	)		(5,314	)
Foreign tax		(1,104	)		(388	)		220
Increase in valuation allowance		42,832			65,097			51,749

Total deferred		(1,686	)		(737	)		(180	)

Total provision for income taxes	$	2,113		$	1,005		$	492

A reconciliation of the provision for income taxes at the statutory U.S. Federal tax rate (35%) and the effective income tax rate is as follows:


	For the year ended December 31,
	2011			2010			2009
	(in thousands)
Statutory Federal benefit	$	(43,673	)	$	(67,696	)	$	(48,586	)
Foreign tax expense		1,576			1,065			158
State and local tax benefit		(1,898	)		(3,405	)		(2,980	)
Convertible debt interest expense and COD income		1,333			4,364			(1,029	)
Other		1,943			1,580			1,180
Valuation allowance		42,832			65,097			51,749

Provision for income taxes	$	2,113		$	1,005		$	492

The components of the net deferred income tax asset (liability) accounts are as follows:


	As of December 31,
	2011			2010
	(in thousands)
Current deferred tax assets:
Allowance for doubtful accounts	$	9		$	70
Deferred revenue		18,207			23,522
Accrued liabilities		2,885			720
Valuation allowance		(20,962	)		(24,268	)

Total current deferred tax assets, net	$	139		$	44


Noncurrent deferred tax assets:
Net operating losses	$	402,392		$	385,516
Property, equipment & intangible basis differences		27,849			29,463
Accrued liabilities		10,166			8,640
Straight-line rents		8,090			9,100
Non-cash compensation		7,437			6,162
Other		2,741			2,877

Total noncurrent deferred tax assets		458,675			441,758

Noncurrent deferred tax liabilities:
Property, equipment & intangible basis differences		(300,432	)		(327,339	)
Convertible debt instruments		(3,823	)		(5,117	)
Early extinguishment of debt		(610	)		—
Other		(4,887	)		(3,403	)
Valuation allowance		(154,886	)		(113,490	)

Total noncurrent deferred tax liabilities, net	$	(5,963	)	$	(7,591	)

Valuation allowances of $175.8 million and $137.8 million were recognized to offset net deferred income tax assets as of December 31, 2011 and 2010, respectively. The net increase in the valuation allowance for the years ended December 31, 2011 and 2010 was $38.1 million and $41.1 million, respectively. During the year ended December 31, 2011 the Company released valuation allowances of $1.0 million related to state deferred tax assets since it is more likely than not that these state deferred tax assets will be realized. At December 31, 2011 the valuation allowance related to federal and state tax credit carryovers was approximately $2.2 million and $0.4 million, respectively. These tax credits expire beginning 2017. At December 31, 2010 the valuation allowance related to federal and state tax credit carryovers was approximately $1.0 million and $0.4 million, respectively.

The Company has available at December 31, 2011, a net federal operating tax loss carry-forward of approximately $1.1 billion and an additional $116.7 million of net operating tax loss carry forward from stock options which will benefit additional paid-in capital when the loss is utilized. These net operating tax loss carry-forwards will expire between 2019 and 2031. The Internal Revenue Code places limitations upon the future availability of net operating losses based upon changes in the equity of the Company. If these occur, the ability of the Company to offset future income with existing net operating losses may be limited. In addition, the Company has available at December 31, 2011, a foreign net operating loss carry-forward of $9.8 million and a net state operating tax loss carry-forward of approximately $563.7 million. These net operating tax loss carry-forwards will expire between 2012 and 2031. At December 31, 2010, the Company had available a foreign net operating loss carry-foward of $6.0 million and a net state operating tax loss carry-forward of approximately $555.6 million.

In accordance with the Company's methodology for determining when stock option deductions are deemed realized, the Company utilizes a "with-and-without" approach that will result in a benefit not being recorded in APIC if the amount of available net operating loss carry-forwards generated from operations is sufficient to offset the current year taxable income.