INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense were as follows (in millions):



	For the Years Ended December 31,
	2012		2011			2010
Current:
Federal	$	4	$	(12	)	$	(11	)
State	8		6			13
Foreign	3		4			2
Total current	15		(2		)	4
Deferred:
Federal	11		22			38
State	—		8			(17		)
Foreign	—		—			(1		)
Total deferred	11		30			20
Total income tax expense	$	26	$	28		$	24

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Domestic and foreign pre-tax income was as follows (in millions):



	For the Years Ended December 31,
	2012			2011			2010
Domestic	$	141		$	121		$	89
Foreign	(7		)	(14		)	(32		)
Total	$	134		$	107		$	57

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of our income tax expense at the federal statutory income tax rate of 35% to income tax expense at the effective tax rate is as follows (in millions):



	For the Years Ended December 31,
	2012			2011			2010
Income tax expense at the federal statutory rate	$	47		$	37		$	20
State and other tax expense	8			8			(2		)
Change in valuation allowance	—			(3		)	(2		)
Grantor trust income (loss)	1			1			(2		)
Subpart F income and foreign dividends	1			1			1
Tax impact of Dublin impairment	—			—			8
Tax rate differential on foreign earnings	5			9			4
Production tax credits/R&E tax credits	(5		)	(5		)	(5		)
Liability for uncertain tax positions	3			(22		)	(2		)
Stock-based compensation	—			—			4
Non-deductible expense incurred to pre-petition claimants from Covanta Energy’s bankruptcy	—			5			—
Below market lease write-off	(33		)	—			—
Other, net	(1		)	(3		)	—
Total income tax expense	$	26		$	28		$	24

Summary of Operating Loss Carryforwards [Table Text Block]

We had consolidated federal NOLs estimated to be approximately $392 million for federal income tax purposes as of the end of 2012. These consolidated federal NOLs will expire, if not used, in the following amounts in the following years (in millions):




	Amount of Carryforward Expiring
2023	$	22
2024	—
2025	—
2026	2
2027	—
2028	332
2029	—
2030	35
2031	1
	$	392

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are presented as follows (in millions):



	As of December 31,
	2012			2011
Deferred Tax Assets:
Loss reserve discounting	$	2		$	2
Capital loss carryforward	—			2
Net operating loss carryforwards	43			50
Accrued expenses	16			17
Prepaids and other costs	25			27
Deferred tax assets attributable to pass-through entities	10			10
Other	2			3
AMT and other credit carryforwards	55			51
Total gross deferred tax asset	153			162
Less: valuation allowance	(34		)	(22		)
Total deferred tax asset	119			140
Deferred Tax Liabilities:
Unbilled accounts receivable	14			18
Property, plant and equipment	588			528
Intangible assets	67			65
Deferred tax liabilities attributable to pass-through entities	68			75
Accrued original issue discount and related deferral on convertible debt	32			36
Prepaid expenses	22			22
Other, net	2			—
Total gross deferred tax liability	793			744
Net deferred tax liability	$	(674	)	$	(604	)

Reconciliation Of Beginning And Ending Amounts Of Unrecognized Tax Benefits [Text Block]

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



Balance at December 31, 2009	$	131
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	1
Reductions for lapse in applicable statute of limitations	(2		)
Reductions for tax positions of prior years	—

Balance at December 31, 2010	$	130
Additions based on tax positions related to the current year	3
Additions for tax positions of prior years	5
Reductions for lapse in applicable statute of limitations	(19		)
Reductions for tax positions of prior years	—

Balance at December 31, 2011	$	119
Additions based on tax positions related to the current year	2
Additions for tax positions of prior years	6
Reductions for lapse in applicable statute of limitations	(3		)
Reductions for tax positions of prior years	—

Balance at December 31, 2012	$	124