Income Taxes	6 Months Ended
Jun. 30, 2013
Income Taxes
Income Taxes	Note 15. Income Taxes Deferred tax assets are recognized for estimated tax effects that are attributable to deductible temporary differences and tax carryforwards related to tax credits and operating losses. They are realized when existing temporary differences are carried back to a profitable year(s) and/or carried forward to a future year(s) having taxable income. Deferred tax assets are reduced by a valuation allowance if an assessment of their components indicates that it is more likely than not that all or some portion of these assets will not be realized. In the assessment for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses; actual earnings; forecasts of future earnings; the duration of statutory carryforward periods; the Company’s experience with loss carryforwards not expiring unused; and tax planning alternatives. During the second quarter of 2013, the Company concluded that it was more likely than not that the valuation allowance against its deferred tax assets will be realized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative, including such factors as five consecutive quarters of earnings, the expectation of the Company’s continued profitability and signs of recovery in the housing market. In accordance with U.S. generally accepted accounting principles (“GAAP”), when a change in a valuation allowance is recognized as a result of a change in judgment in an interim period, a portion of the valuation allowance to be reversed needs to be spread over remaining interim periods. Accordingly, the Company reversed $187.5 million of its deferred tax asset valuation allowance during the second quarter of 2013. After the reversal, the Company had a valuation allowance of $46.4 million against its deferred tax assets at June 30, 2013, compared to $258.9 million at December 31, 2012. During the three and six months ended June 30, 2013, the Company recorded tax benefits of $187.0 million and $186.8 million, respectively, primarily related to the reversal of its deferred tax asset valuation allowance. For federal purposes, net operating losses can be carried forward 20 years; for state purposes, they can generally be carried forward 10 to 20 years, depending on the taxing jurisdiction. Federal net operating loss carryforwards, if not utilized, will begin to expire in 2031. Tax credit carryforwards can be carried forward five years, with expiration dates beginning in 2014. For the three and six months ended June 30, 2013, the Company’s provision for income tax presented overall effective income tax benefit rates of 422.6 percent and 280.6 percent, respectively, related to the reversal of the Company’s deferred tax asset valuation allowance. For the three and six months ended June 30, 2012, the Company’s provision for income tax presented overall effective income tax expense rates of 2.9 percent and 14.0 percent, respectively, primarily due to noncash adjustments to the Company’s deferred tax asset valuation allowance. During the second quarter of 2012, the Company recorded a minimal amount of state income tax that totaled $190,000.

Note 15. Income Taxes

Deferred tax assets are recognized for estimated tax effects that are attributable to deductible temporary differences and tax carryforwards related to tax credits and operating losses. They are realized when existing temporary differences are carried back to a profitable year(s) and/or carried forward to a future year(s) having taxable income. Deferred tax assets are reduced by a valuation allowance if an assessment of their components indicates that it is more likely than not that all or some portion of these assets will not be realized. In the assessment for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses; actual earnings; forecasts of future earnings; the duration of statutory carryforward periods; the Company’s experience with loss carryforwards not expiring unused; and tax planning alternatives. During the second quarter of 2013, the Company concluded that it was more likely than not that the valuation allowance against its deferred tax assets will be realized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative, including such factors as five consecutive quarters of earnings, the expectation of the Company’s continued profitability and signs of recovery in the housing market. In accordance with U.S. generally accepted accounting principles (“GAAP”), when a change in a valuation allowance is recognized as a result of a change in judgment in an interim period, a portion of the valuation allowance to be reversed needs to be spread over remaining interim periods.

Accordingly, the Company reversed $187.5 million of its deferred tax asset valuation allowance during the second quarter of 2013. After the reversal, the Company had a valuation allowance of $46.4 million against its deferred tax assets at June 30, 2013, compared to $258.9 million at December 31, 2012. During the three and six months ended June 30, 2013, the Company recorded tax benefits of $187.0 million and $186.8 million, respectively, primarily related to the reversal of its deferred tax asset valuation allowance. For federal purposes, net operating losses can be carried forward 20 years; for state purposes, they can generally be carried forward 10 to 20 years, depending on the taxing jurisdiction. Federal net operating loss carryforwards, if not utilized, will begin to expire in 2031. Tax credit carryforwards can be carried forward five years, with expiration dates beginning in 2014.

For the three and six months ended June 30, 2013, the Company’s provision for income tax presented overall effective income tax benefit rates of 422.6 percent and 280.6 percent, respectively, related to the reversal of the Company’s deferred tax asset valuation allowance. For the three and six months ended June 30, 2012, the Company’s provision for income tax presented overall effective income tax expense rates of 2.9 percent and 14.0 percent, respectively, primarily due to noncash adjustments to the Company’s deferred tax asset valuation allowance. During the second quarter of 2012, the Company recorded a minimal amount of state income tax that totaled $190,000.