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Tax Receivable Agreement
9 Months Ended
Sep. 30, 2011
Tax Receivable Agreement [Abstract] 
Tax Receivable Agreement

11. Tax Receivable Agreement

The Company entered into a Tax Receivable Agreement ("TRA") with the Company's Pre-IPO Stockholders (as defined in the TRA) that became effective immediately prior to the consummation of the IPO. Under the TRA, the Company is obligated to pay to the Pre-IPO Stockholders an amount equal to 90 percent of the cash savings in federal income tax realized by the Company by virtue of the use of the federal net operating loss, deferred interest deductions and alternative minimum tax credits held by the Company as of March 31, 2011. Cash tax savings generally will be computed by comparing our actual federal income tax liability to the amount of such taxes that we would have been required to pay had such Pre-IPO NOLs (as defined in the TRA) not been available. Upon consummation of the IPO and execution of the TRA the Company recorded a liability with an offsetting reduction to additional paid in capital.

The amount and timing of payments under the TRA will depend upon a number of factors, including, but not limited to, the amount and timing of taxable income the Company generates in the future and any future limitations that may be imposed on the Company's ability to use the Pre-IPO NOLs. As of September 30, 2011, the Company estimated a cash benefit of $36.5 million, or 90 percent of the total cash benefit from the full use of the Pre-IPO NOLs, which is payable to the Company's Pre-IPO Stockholders under the terms of the TRA. Please see "Certain Relationships and Related Transactions—Tax Receivable Agreement" within the registration statement of the Company on Form S-1 related to the IPO, filed with the Securities and Exchange Commission for additional information and terms related to Tax Receivable Agreement.