INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of provision for (benefit from) income taxes

	2012		2011			2010
	(In thousands)
Current	$	2,439	$	936		$	2,658
Deferred		4,448		(19,261	)		(636,117	)
Total	$	6,887	$	(18,325	)	$	(633,459	)

Schedule of reconciliation of income tax expense computed by applying the Federal corporate tax rate to the provision for income taxes

	2012			2011			2010
	(In thousands)
Tax at statutory rate on earnings from continuing operations before income taxes	$	(42,490	)	$	45,099		$	(245,942	)
Increase (decrease) in valuation allowance, net		(32,172	)		(13,110	)		61,649
State income taxes, net of Federal income tax benefit		1,328			2,243			(7,969	)
Tax at statutory rate on REIT entity earnings not subject to Federal income taxes		(3,087	)		1,204			2,193
Tax expense (benefit) from change in rates, prior period adjustments and other permanent differences		13,908			(20,829	)		(8,811	)
Non-deductible warrant liability (gain) loss		65,311			(35,859	)		49,315
Non-taxable interest income		(2,863	)		(2,990	)		—
Non-deductible restructuring costs		—			—			17,352
Tax benefit from tax related restructuring		—			—			(509,970	)
Uncertain tax position expense, excluding interest		1,765			364			1,667
Uncertain tax position interest, net of Federal income tax benefit		5,187			5,553			7,057
Income tax expense (benefit)	$	6,887		$	(18,325	)	$	(633,459	)

Schedule of amounts and expiration dates of operating loss and tax credit carryforwards

As of December 31, 2012, the amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes are as follows:

	Amount		Expiration Date
	(In thousands)
Net operating loss carryforwards – Federal	$	59,107	2024-2032
Net operating loss carryforwards – State		273,406	2013-2032
Tax credit carryforwards – Federal AMT		2,323	n/a

Summary of tax effects of temporary differences and carry-forwards included in net deferred tax liabilities

	2012			2011
	(In thousands)
Deferred tax assets:
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities	$	291,845		$	226,097
Interest deduction carryforwards		86,963			110,649
Operating loss and tax credit carryforwards		31,643			47,776
Total deferred tax assets		410,451			384,522
Valuation allowance		(101,518	)		(57,276	)
Total net deferred tax assets		308,933			327,246
Deferred tax liabilities:
Property associated with Master Planned Communities, primarily differences in the tax basis of land assets and treatment of interest and other costs		(172,914	)		(189,147	)
Deferred income		(213,166	)		(214,065	)
Total deferred tax liabilities		(386,080	)		(403,212	)
Net deferred tax liabilities	$	(77,147	)	$	(75,966	)

Schedule of reconciliation of Unrecognized Tax Benefits

	2012			2011			2010
	(In thousands)
Unrecognized tax benefits, opening balance	$	101,408		$	120,816		$	56,508
Gross increases – tax positions in prior period		841			—			69,168
Gross decreases – tax positions in prior periods		(6,332	)		(19,408	)		(4,860	)
Unrecognized tax benefits, ending balance	$	95,917		$	101,408		$	120,816