Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Loss Before Provision for Income Taxes from Continuing Operations by Geographic Area

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

	For the year ended December 31,
	2012			2011			2010
				(in thousands)
Domestic	$	(175,679	)	$	(118,671	)	$	(193,048	)
Foreign		(1,413	)		(6,108	)		(368	)
Total	$	(177,092	)	$	(124,779	)	$	(193,416	)

Components of Provision for Income Taxes

The provision for income taxes on continuing operations consists of the following components:

	For the year ended December 31,
	2012			2011			2010
				(in thousands)
Current (benefit) provision for taxes:
Federal (1)	$	(1,237	)	$	—		$	—
Foreign		3,769			1,608			897
State (1)		2,702			2,191			845
Total current		5,234			3,799			1742
Deferred (benefit) provision for taxes:
Federal income taxes		(53,501	)		(38,303	)		(59,363	)
State and local taxes		(13,750	)		(5,111	)		(6,083	)
Foreign tax		(1	)		(1,104	)		(388	)
Increase in valuation allowance		68,612			42,832			65,097
Total deferred		1,360			(1,686	)		(737	)
Total provision for income taxes	$	6,594		$	2,113		$	1,005

(1) Included in the 2012 current provision for income taxes on continuing operations is a benefit of $1.5 million that is an offset to the tax expense netted in discontinued operations. Of the $1.5 million benefit, $1.2 million relates to federal taxes and $0.3 million relates to state taxes.

Income Tax Rate Reconciliation

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

	For the year ended December 31,
	2012			2011			2010
				(in thousands)
Statutory Federal benefit	$	(61,982	)	$	(43,673	)	$	(67,696	)
Foreign tax expense		1,878			1,576			1,065
State and local taxes benefit		(7,181	)		(1,898	)		(3,405	)
Convertible debt interest expense and COD income		1,178			1,333			4,364
Non-deductible non-cash compensation		987			—			—
Other		3,102			1,943			1,580
Valuation allowance		68,612			42,832			65,097
Provision for income taxes	$	6,594		$	2,113		$	1,005

Components of Net Deferred Income Tax Asset and Liability

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

	As of December 31,
	2012			2011
	(in thousands)
Current deferred tax assets:
Allowance for doubtful accounts	$	648		$	9
Deferred revenue		30,237			18,207
Accrued liabilities		4,891			2,885
Valuation allowance		(35,668	)		(20,962	)
Total current deferred tax assets, net (1)	$	108		$	139
Noncurrent deferred tax assets:
Net operating losses	$	436,083		$	402,392
Property, equipment & intangible basis differences		46,357			27,849
Accrued liabilities		15,259			10,166
Straight-line rents		—			8,090
Non-cash compensation		7,448			7,437
Other		5,081			2,741
Total noncurrent deferred tax assets		510,228			458,675
Noncurrent deferred tax liabilities:
Property, equipment & intangible basis differences		(318,446	)		(300,432	)
Convertible debt instruments		(3,660	)		(3,823	)
Straight-line Rents		(4,259	)		(610	)
Other		(6,631	)		(4,887	)
Valuation allowance		(198,016	)		(154,886	)
Total noncurrent deferred tax liabilities, net (2)	$	(20,784	)	$	(5,963	)

(1) Amounts are included in Prepaid and other current assets on the Consolidated Balance Sheets.

(2) Of these amounts, $148 and ($20,932) are included in the Other assets and Other long-term liabilities respectively on the accompanying Consolidated Balance Sheets as of December 31, 2012. As of December 31, 2011, $(5,963) is included within other long-term liabilities on the accompanying Consolidated Balance Sheet.