Note 14 - Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

14.          Income Taxes

At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and use that rate to provide for income taxes for the current year-to-date reporting period. As a result, we recorded income tax expense of $8.5 million and $28.1 million for the three and nine months ended September 30, 2014, respectively, compared to a benefit of $1.3 million and $188.2 million for the same respective periods in 2013. Our overall effective income tax rates were 35.4% and 36.7% for the three and nine months ended September 30, 2014, respectively, while our effective tax rates for the same periods in 2013 were not meaningful as the income tax benefit was not directly correlated to the amount of pretax income in such periods due to a $187.6 million benefit from the reversal of our deferred tax asset valuation allowance in the 2013 second quarter.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to our net deferred tax asset are as follows:

	September 30,			December 31,
	2014			2013
	(Dollars in thousands)
Deferred tax assets:
Federal net operating loss carryforwards	$	51,956		$	72,700
State net operating loss carryforwards		40,485			38,082
Alternative minimum tax and other tax credit carryforwards		25,539			24,196
Stock-based compensation expense		26,753			26,651
Warranty, litigation and other reserves		12,527			15,543
Receivables from related party		11,915			12,132
Accrued compensation		4,957			11,136
Asset impairment charges		4,728			5,496
Inventory, additional costs capitalized for tax purposes		3,183			1,700
Other, net		4,030			3,446
Total deferred tax assets		186,073			211,082
Valuation allowance		(14,988	)		(14,669	)
Total deferred tax assets, net of valuation allowance		171,085			196,413
Deferred tax liabilities:
Property, equipment and other assets		5,161			5,512
Discount on notes receivable		4,204			4,204
Deferred revenue		4,148			3,985
Unrealized gain on marketable securities		1,485			4,915
Other, net		1,545			1,535
Total deferred tax liabilities		16,543			20,151
Net deferred tax asset	$	154,542		$	176,262