|12 Months Ended|
Dec. 31, 2011
|Income Tax Disclosure [Abstract]|
|Income Tax Disclosure [Text Block]||
Income tax provision (benefit) included in our reported net loss consisted of the following (in thousands):
The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows:
(1) We have made certain changes in the classification and presentation of certain items. These changes do not affect the
disclosed effective tax rate.
Significant components of our deferred tax assets and liabilities at December 31, 2011 and 2010 are as follows (in thousands):
(3) A valuation allowance equal to our U.S. and state net deferred tax asset balance has been established due to the uncertainty of realizing the tax benefits related to our U.S. and state net deferred tax assets. The change in the U.S. and state deferred tax asset valuation allowance is $83.5 million and $33.4 million for the years ended December 31, 2011 and 2010, respectively.
Changes in the balance of unrecognized tax benefits are as follows (in thousands):
At December 31, 2011, the amount of unrecognized tax benefits related to our federal NOL carryforward associated with uncertain tax positions was $135.3 million. Our effective tax rate would not be affected if the unrecognized federal tax benefits provided above were recognized. Currently, we do not recognize any accrued liabilities, interest and penalties associated with the unrecognized tax benefits provided above in our Consolidated Statements of Operations or our Consolidated Balance Sheets. We record interest and penalties related to unrecognized tax benefits to our income tax provision.
During the third quarter of 2010, largely due to the increased level of trading activity in our shares, we experienced an ownership change within the provisions of Internal Revenue Code Section 382 (“Section 382”) that will subject approximately $855 million of our existing federal NOL carryforwards to an annual NOL utilization limitation. The applicable Section 382 limitation may affect our ability to fully utilize approximately $855 million of our existing federal NOL carryforward. Our ability to fully utilize our existing federal NOL carryforward is dependent on the amount of any net unrealized built in gains on the ownership change date and increasing the recognition of built-in gains in the five-year period following the above-referenced ownership change. We will continue to monitor trading activity in our shares which may cause an additional ownership change which may ultimately affect our ability to fully utilize our existing federal NOL carryforward.
We currently file tax returns in the U.S. federal jurisdiction, the United Kingdom and various state and local jurisdictions. We are no longer subject to U.S. federal, state or local income tax examinations by tax authorities for tax years prior to 2008. The Louisiana Department of Revenue is currently examining our 2007 through 2009 income tax returns.
In 2011, we generated a federal NOL of $595.4 million which is expected to be carried forward and applied against regular taxable income in future periods. Accounting for share-based compensation provides that when settlement of a share-based award contributes to an NOL carryforward, neither of the associated excess tax benefits nor the credit to additional paid-in-capital ("APIC") should be recorded until the share-based award deduction reduces income tax payable. Upon utilization of the loss in future periods, a benefit of $21.2 million will be reflected in APIC.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef