Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Loss Before Income Taxes

Components of loss before income taxes for the years ended December 31, were as follows (in thousands):

	2012			2011			2010
Domestic	$	(58,183	)	$	(300,445	)	$	(1,098,438	)
International		(31,439	)		35,031			(533,548	)
Loss before income taxes	$	(89,622	)	$	(265,414	)	$	(1,631,986	)

Components of Provision for Income Tax

Components of the provision for income taxes for the years ended December 31, were as follows (in thousands):

	2012		2011		2010
Current income tax expense (benefit)
United States Federal	$	(27,897)	$	(9,392)	$	15,257
International		46,294		30,010		248
State and local		7,383		4,177		9,947
Total Current		25,780		24,795		25,452
Deferred income tax expense (benefit)
United States Federal		152		(1,333)		13,913
International		(22,119)		(18,470)		(66,136)
Total Deferred		(21,967)		(19,803)		(52,223)
Total income tax expense (benefit), included in continuing and discontinued operations	$	3,813	$	4,992	$	(26,771)

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities as of December 31, were as follows (in thousands):

	2012		2011
Gross deferred income tax assets:
Net operating loss carryforwards (1)	$	611,027	$	443,026
Basis difference - real estate properties		172,336		185,266
Basis difference - equity investments		13,163		20,008
Basis difference - intangibles		17,408		24,664
Alternative minimum tax credit carryforward		1,387		1,388
Foreign tax credit carryforward		1,963		1,944
Section 163(j) interest limitation		53,542		36,733
Capital loss carryforward		30,395		-
Other - temporary differences		16,746		14,784
Total gross deferred income tax assets		917,967		727,813
Valuation allowance		(859,305)		(641,064)
Gross deferred income tax assets, net of valuation allowance		58,662		86,749
Gross deferred income tax liabilities:
Basis difference - real estate properties		436,961		567,943
Built-in-gains - real estate properties		6,402		6,402
Basis difference - equity investments		958		1,118
Built-in-gains - equity investments		22,053		22,111
Basis difference - intangibles		10,591		9,742
Other - temporary differences		5,123		7,384
Total gross deferred income tax liabilities		482,088		614,700
Net deferred income tax liabilities	$	423,426	$	527,951

Summary of Operating Loss Carryforwards

1) At December 31, 2012, we had net operating loss (“NOL”) carryforwards as follows (in millions):

	U.S.		Europe		Mexico		Japan		Other
Gross NOL carryforward	$	96.8	$	1,447.7	$	494.3	$	186.8	$	57.0
Tax-effected NOL carryforward		36.3		393.7		140.8		26.6		13.6
Valuation allowance		(36.3)		(374.5)		(136.7)		(26.6)		(13.6)
Net deferred tax asset-NOL carryforward	$	-	$	19.2	$	4.1	$	-	$	-
Expiration periods		2022-2032		2013-indefinite		2013-2022		2013-2021		2013-indefinite

Summary of Income Tax Contingencies

A reconciliation of the liability for uncertain tax positions was as follows (in thousands):

	2012		2011
Balance at January 1,	$	36,464	$	70,496
Additions for tax positions taken during the current year		-		8,061
Additions for tax positions taken during a prior year		407		7,058
Reductions for tax positions taken during a prior year		(124)		(11,464)
Settlements with taxing authorities		-		(24,835)
Reductions due to lapse of applicable statute of limitations		(28,804)		(12,852)
Balance at December 31,	$	7,943	$	36,464