INCOME TAXES (Tables)-K

12 Months Ended

Dec. 31, 2014

INCOME TAXES

Schedule of provision for (benefit from) income taxes

	2014		2013		2012
	(In thousands)
Current	$	(2,050)	$	1,218	$	2,439
Deferred		65,010		8,352		4,448
Total	$	62,960	$	9,570	$	6,887

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

	2014		2013		2012
	(In thousands)
Tax at statutory rate on earnings from continuing operations before income taxes	$	13,800	$	(22,477)	$	(42,490)
Increase (decrease) in valuation allowance, net		5,602		(88,826)		(32,172)
State income taxes, net of Federal income tax benefit		1,320		1,562		1,328
Tax at statutory rate on REIT entity earnings not subject to Federal income taxes		(512)		(2,648)		(3,087)
Tax expense (benefit) from change in rates and other permanent differences		(12,193)		4,339		13,908
Set up deferred tax liability related to captive REIT		(1,068)		53,973		-
Non-deductible warrant liability loss		21,182		63,695		65,311
Non-taxable interest income		18,373		(363)		(2,863)
Uncertain tax position expense, excluding interest		2,395		(1,034)		1,765
Uncertain tax position interest, net of Federal income tax benefit		14,061		1,349		5,187
Income tax expense	$	62,960	$	9,570	$	6,887

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

			Expiration
	Amount		Date
		(In thousands)
Net operating loss carryforwards - Federal	$	109,096		2024-2034
Net operating loss carryforwards - State		138,221		2015-2034
Capital loss carryfoward		26,345		2018-2019
Tax credit carryforwards - Federal AMT		1,955		n/a

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

	2014		2013
	(In thousands)
Deferred tax assets:
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities	$	201,303	$	201,993
Interest deduction carryforwards		80,520		85,671
Operating loss and tax credit carryforwards		53,851		48,971
Total deferred tax assets		335,674		336,635
Valuation allowance		(18,218)		(12,624)
Total net deferred tax assets	$	317,456	$	324,011
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	$	(212,093)	$	(137,930)
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities		(47,355)		(48,007)
Deferred income		(120,213)		(227,439)
Total deferred tax liabilities		(379,661)		(413,376)
Net deferred tax liabilities	$	(62,205)	$	(89,365)

Schedule of reconciliation of Unrecognized Tax Benefits

	2014		2013		2012
	(In thousands)
Unrecognized tax benefits, opening balance	$	90,532	$	95,917	$	101,408
Gross increases - tax positions in prior period		93,668		9,162		841
Gross decreases - tax positions in prior periods		-		(14,547)		(6,332)
Unrecognized tax benefits, ending balance	$	184,200	$	90,532	$	95,917