INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Summary of components of earnings (loss) before provision (benefit) for income taxes

The following is a summary of the components of earnings (loss) before provision (benefit) for income taxes:

	For the year ended December 31,
(Amounts in thousands)	2011			2010		2009

Domestic	$	(86,538	)	$	23,927	$	(101,378	)
Foreign		2,714			8,767		6,660
	$	(83,824	)	$	32,694	$	(94,718	)

Summary of provision (benefit) for income taxes

The following is a summary of the provision (benefit) for income taxes included in the accompanying consolidated statement of operations:

	For the year ended December 31,
(Amounts in thousands)	2011			2010			2009

Federal:
Current	$	(6,617	)	$	83		$	(5,176	)
Deferred		6,640			1,331			(17,825	)
		23			1,414			(23,001	)
State:
Current	$	654		$	1,526		$	1,827
Deferred		(847	)		(350	)		1,149
		(193	)		1,176			2,976
Foreign:
Current	$	353		$	1,815		$	1,433
Deferred		500			622			626
		853			2,437			2,059

Total	$	683		$	5,027		$	(17,966	)

Reconciliation of federal statutory income tax rate to the effective tax rate

The table that follows reconciles the federal statutory income tax rate to the effective tax rate of approximately 0.8% for the year ended December 31, 2011, 15.4% for the year ended December 31, 2010, and 18.9% for the year ended December 31, 2009.

	For the year ended December 31,
(Amounts in thousands)	2011			2010			2009

Income tax provision (benefit)
at the federal statutory rate	$	(29,338	)	$	11,443		$	(33,151	)

Net change from statutory rate:
Valuation allowance		38,939			(28,692	)		35,890
Federal impact of cancellation of debt income		-			17,667			(17,603	)
State impact of cancellation of debt income		-			2,646			(1,187	)
Federal net operating loss adjustment		-			2,581			-
State income tax benefit, net of federal income
tax benefit and goodwill impairment in 2009		(1,936	)		(766	)		(3,293	)
Taxes at non U.S. statutory rate		76			(153	)		89
Additional provisions/reversals of uncertain
tax positions		(6,287	)		342			1,114
Canadian rate differential		(254	)		(592	)		(361	)
Other, net		(517	)		551			536
	$	683		$	5,027		$	(17,966	)

Deferred income tax assets and liabilities

The tax effect of temporary differences, which gave rise to significant portions of deferred income tax assets and liabilities as of December 31, 2011 and 2010 are as follows:

(Amounts in thousands)	December 31, 2011			December 31, 2010
Deferred tax assets:
Accounts receivable	$	1,397		$	2,028
Insurance reserves		1,832			2,290
Warranty reserves		11,668			12,280
Pension accrual		6,413			4,407
Deferred compensation		683			121
Inventories		3,100			3,407
Plant closure/relocations		-			407
Original issue discount - cancellation of indebtedness		-			2,499
Federal, net operating loss carry-forwards		76,789			48,251
State net operating loss carry-forwards		11,380			8,579
Interest		4,636			4,650
Other assets, net		5,172			5,307
Valuation allowance		(49,780	)		(8,279	)
Total deferred tax assets		73,290			85,947
Deferred tax liabilities:
Property and equipment, net		(17,517	)		(18,893	)
Intangible assets, net		(39,912	)		(47,158	)
Deferred financing		(14,995	)		(4,327	)
Cancellation of debt income		-			(9,920	)
Other liabilities, net		(1,935	)		(1,764	)
Total deferred tax liabilities		(74,359	)		(82,062	)
Net deferred tax asset (liability)	$	(1,069	)	$	3,885

Rollforward of gross tax contingencies

The following is a rollforward of gross tax contingencies from January 1, 2010 through December 31, 2011.

Balance at January 1, 2010	$	18,401
Additions based on tax positions related to current year		407
Additions for tax positions of prior years		54
Reductions for tax positions of prior years		-
Settlement or lapse of applicable statutes		(158	)
Unrecognized tax benefits balance at December 31, 2010		18,704
Additions based on tax positions related to current year		274
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		-
Settlement or lapse of applicable statutes		(6,268	)
Unrecognized tax benefits balance at December 31, 2011	$	12,710