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Income taxes
6 Months Ended
Jun. 30, 2011
Income taxes [Abstract]  
Income Tax Disclosure
Income taxes
At June 30, 2011 and December 31, 2010, unrecognized tax benefits totaled $5.2 million and $4.9 million, respectively. The total amount of unrecognized benefits that would affect the effective tax rate if recognized was $1.2 million at June 30, 2011 and $1.1 million at December 31, 2010. As of June 30, 2011, accrued interest and penalties totaled $0.7 million, of which $0.5 million would affect the effective tax rate if recognized.
The effective income tax rate was 22.4% for the quarter ended June 30, 2011, compared to 38.8% for the same period in 2010. For the six months ended June 30, 2011 and 2010, the effective income tax rates were 27.9% and 34.9%, respectively.
The second quarter of 2011 was impacted by debt refinancing costs and charges, non-operational professional fees and a prospective change in the Indiana state income tax rate, which will be phased in over a five-year period beginning July 1, 2012. Excluding the impact of these items, the effective tax rate for the three and six months ended June 30, 2011 would have been 41.9% and 42.3%, respectively.
In connection with the impairment of intangible assets at Ameristar East Chicago, the Company recorded a deferred tax benefit of $22.8 million during the second quarter of 2010. The effective income tax rate excluding the impact of the Ameristar East Chicago impairment for the three and six months ended June 30, 2010 would have been 45.8% and 44.4%, respectively.
The Company files income tax returns in numerous jurisdictions. The statutes of limitations vary by jurisdiction, with certain of these statutes expiring without examination each year. The Company anticipates that the net amount of unrecognized tax benefits will decrease by $0.6 million within the next 12 months, none of which would affect the effective tax rate if recognized.