Note 19 - Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Text Block]

19.       Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”).  ASC 740 requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered.

Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740.  We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable.  Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods, our utilization experience with operating loss and tax credit carryforwards, and tax planning alternatives.

As of March 31, 2013, we had a $464.0 million deferred tax asset which was partially offset by a valuation allowance of $22.7 million relating primarily to potential Internal Revenue Code Section 382 (“Section 382”) limitations that expire during the 2013 second quarter and to state net operating loss carryforwards.  Our deferred tax asset included $285.6 million of tax effected net operating loss carryforwards, of which $149.6 million (or approximately $366.0 million and $429.2 million, respectively, of federal and state net operating loss carryforwards on a gross basis) is subject to a $15.6 million gross annual limitation under Section 382.  The remaining $136.0 million (or approximately $282.1 million and $696.2 million, respectively, of federal and state net operating loss carryforwards on a gross basis) is not subject to an annual limitation.

As of March 31, 2013, our liability for gross unrecognized tax benefits was $13.5 million, all of which, if recognized, would reduce our effective tax rate.  We believe that it is reasonably possible that the full amount of our unrecognized tax benefits may be recognized by the end of fiscal 2013 as a result of a lapse of the statute of limitations.  As of March 31, 2013, we remained subject to examination by various tax jurisdictions for the tax years ended December 31, 2008 through 2012.