Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income (Loss) From Continuing Operations Before Income Taxes and Minority Interest

Consolidated income before taxes and noncontrolling interests for domestic and foreign operations is as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Foreign	$	2,089,243		$	2,149,538		$	960,941
Domestic		(26,667	)		(54,715	)		(105,036	)
Total income before income taxes	$	2,062,576		$	2,094,823		$	855,905

Components of (Benefit) Expense for Income Taxes

The components of the income tax expense are as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Foreign:
Current	$	163,199		$	120,502		$	5,280
Deferred		17,848			91,706			68,456
Federal:
Current		12,379			232			(30,515	)
Deferred		(12,660	)		(779	)		31,080
State:
Current		(3	)		43			1
Deferred		—			—			—
Total income tax expense	$	180,763		$	211,704		$	74,302

Effective Income Tax Rate Continuing Operations Tax rate Reconciliation

The reconciliation of the statutory federal income tax rate and the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in tax rate resulting from:
U.S. foreign tax credits		(162.1	)%		(4.0	)%		—
Repatriation of foreign earnings		110.5	%		2.4	%		—
Change in valuation allowance		54.3	%		2.7	%		10.5	%
Foreign and U.S. tax rate differential		(20.8	)%		(21.0	)%		(24.4	)%
Tax exempt income of foreign subsidiary (Macao)		(10.0	)%		(7.6	)%		(14.4	)%
Change in uncertain tax positions		0.7	%		0.1	%		0.3	%
Other, net		1.2	%		2.5	%		1.7	%
Effective tax rate		8.8	%		10.1	%		8.7	%

Primary Tax Affected Components of Company's Net Deferred Tax Liabilities

The primary tax affected components of the Company’s net deferred tax liabilities are as follows (in thousands):

	December 31,
	2012			2011
Deferred tax assets:
U.S. foreign tax credit carryforwards	$	1,199,794		$	84,481
Net operating loss carryforwards		193,638			249,632
Pre-opening expenses		49,103			41,452
Stock-based compensation		47,197			45,710
Deferred gain on the sale of The Grand Canal Shoppes and The Shoppes at The Palazzo		34,534			35,927
Allowance for doubtful accounts		25,156			21,284
Accrued expenses		24,868			26,670
State deferred items		13,976			12,350
Other tax credit carryforwards		4,313			3,771
Other		5,456			8,746
		1,598,035			530,023
Less — valuation allowances		(1,390,900	)		(325,239	)
Total deferred tax assets		207,135			204,784
Deferred tax liabilities:
Property and equipment		(323,674	)		(321,512	)
Prepaid expenses		(556	)		(3,909	)
Other		(23,271	)		(12,456	)
Total deferred tax liabilities		(347,501	)		(337,877	)
Deferred tax liabilities, net	$	(140,366	)	$	(133,093	)

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2012		2011			2010
Balance at the beginning of the year	$	43,411	$	35,769		$	66,067
Additions to tax positions related to prior years		8,959		4,450			324
Reductions to tax positions related to prior years		—		(35	)		(6,287	)
Additions to tax positions related to current year		6,968		3,736			2,311
Settlements		—		(417	)		(26,646	)
Lapse in statutes of limitations		—		(92	)		—
Balance at the end of the year	$	59,338	$	43,411		$	35,769