Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Income Taxes

Income Taxes

Key aspects of the accounting for income taxes for the three months ended June 30, 2012 are as follows:

• the Company recorded $50.0 million of U.S. federal and $7.4 million of state deferred tax liabilities in the NextG Acquisition in connection with the preliminary purchase price allocation;

• in conjunction with (1) recording deferred tax liabilities in the NextG Acquisition in connection with the preliminary purchase price allocation and (2) consideration of the Company's continued historical trend of positive income (during 2012, the Company will have cumulative pre-tax income for the three-year period), the Company determined that it is more likely than not that the substantial portion of the Company's remaining U.S. federal and state deferred tax assets will be realized in future years; and

• as a result of the above, the Company reversed a total of $70.1 million of federal and $20.0 million of state valuation allowances to the benefit (provision) for income taxes.

The remaining valuation allowances as of June 30, 2012 reserve assets associated principally with (1) U.S. federal capital losses ($29.4 million), (2) certain state net operating losses ($9.7 million), and (3) deferred tax assets associated with CCAL ($61.7 million).