Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Reconciliation of the federal income tax statutory rate to the Company's effective income tax rate

	2012		2011		2010
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax	3.5		3.2		3.2
Deferred tax valuation allowance	(39.3	)	(37.8	)	(38.5	)
Compensation expense	2.7		(1.6	)	(0.9	)
Settlement of uncertain tax positions	–		4.6		–
Other	1.9		1.9		1.0
Effective income tax rate	3.8	%	5.3	%	(0.2	)%

Summary of the Company's income tax expense (benefit)

(in thousands)		2012		2011			2010
CURRENT TAX EXPENSE (BENEFIT)
Federal	$	568	$	(227	)	$	(244	)
State		1,017		(2,638	)		439
Total current tax expense (benefit)		1,585		(2,865	)		195
DEFERRED TAX EXPENSE
Federal		–		–			–
State		–		–			–
Total deferred tax expense		–		–			–
Total income tax expense (benefit)	$	1,585	$	(2,865	)	$	195

Significant components of the Company's deferred tax assets and liabilities

	DECEMBER 31,
(in thousands)		2012			2011
DEFERRED TAX ASSETS
Warranty, legal and other accruals	$	17,482		$	17,206
Employee benefits		19,285			17,131
Noncash tax charge for impairment of long-lived assets		88,042			115,226
Joint ventures		4,188			3,604
Federal net operating loss carryforwards		120,068			107,529
Other carryforwards		1,057			1,352
State net operating loss carryforwards		37,893			36,831
Other		912			1,313
Total		288,927			300,192
Valuation allowance		(258,867	)		(270,451	)
Total deferred tax assets		30,060			29,741
DEFERRED TAX LIABILITIES
Deferred recognition of income and gains		(2,277	)		(3,385	)
Capitalized expenses		(25,748	)		(24,842	)
Other		(2,035	)		(1,514	)
Total deferred tax liabilities		(30,060	)		(29,741	)
NET DEFERRED TAX ASSET	$	–		$	–

Summary of accounting for tax uncertainties

(in thousands)		2012			2011
Balance at January 1	$	129		$	3,164
Additions related to prior year positions		218			100
Reductions related to prior year positions		–			(450	)
Reductions due to settlements		–			(1,878	)
Reductions due to expiration of the statute of limitations		(29	)		(807	)
Balance at December 31	$	318		$	129