INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of provision for (benefit from) income taxes

	2013		2012		2011
	(In thousands)
Current	$	1,218	$	2,439	$	936
Deferred		8,352		4,448		(19,261	)(*)
Total	$	9,570	$	6,887	$	(18,325	)

(*)

A component of the tax benefit recorded for the year ended December 31, 2011 relates to an adjustment to true-up the deferred tax assets and liabilities that were received by us upon the spin-off from GGP.

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

	2013			2012			2011
	(In thousands)
Tax at statutory rate on earnings from continuing operations before income taxes	$	(22,477	)	$	(42,490	)	$	45,099
Increase (decrease) in valuation allowance, net		(88,826	)		(32,172	)		(13,110	)
State income taxes, net of Federal income tax benefit		1,562			1,328			2,243
Tax at statutory rate on REIT entity earnings not subject to Federal income taxes		(2,648	)		(3,087	)		1,204
Tax expense (benefit) from change in rates, prior period adjustments and other permanent differences		4,339			13,908			(20,829	)
Record deferred tax liability on captive REIT and REIT land distribution		53,973			—			—
Non-deductible warrant liability (gain) loss		63,695			65,311			(35,859	)
Non-taxable interest income		(363	)		(2,863	)		(2,990	)
Uncertain tax position expense, excluding interest		(1,034	)		1,765			364
Uncertain tax position interest, net of Federal income tax benefit		1,349			5,187			5,553
Income tax expense (benefit)	$	9,570		$	6,887		$	(18,325	)

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

As of December 31, 2013, 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	$	94,715	2024-2033
Net operating loss carryforwards – State		254,533	2014-2033
Capital loss carryforward		16,397	2018
Tax credit carryforwards – Federal AMT		2,045	n/a

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

	2013			2012
	(In thousands)
Deferred tax assets:
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities	$	201,993		$	291,845
Interest deduction carryforwards		85,671			86,963
Operating loss and tax credit carryforwards		48,971			31,643
Total deferred tax assets		336,635			410,451
Valuation allowance		(12,624	)		(101,518	)
Total net deferred tax assets		324,011			308,933
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	$	(137,930	)		(172,914	)
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities		(48,007	)		—
Deferred income		(227,439	)		(213,166	)
Total deferred tax liabilities		(413,376	)		(386,080	)
Net deferred tax liabilities	$	(89,365	)	$	(77,147	)

Schedule of reconciliation of Unrecognized Tax Benefits

	2013			2012			2011
	(In thousands)
Unrecognized tax benefits, opening balance	$	95,917		$	101,408		$	120,816
Gross increases – tax positions in prior period		9,162			841			—
Gross decreases – tax positions in prior periods		(14,547	)		(6,332	)		(19,408	)
Unrecognized tax benefits, ending balance	$	90,532		$	95,917		$	101,408