Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Income Tax Expense (Benefit) From Continuing Operations

The composition of our income tax expense (benefit) from continuing operations for the years ended December 31, 2011, 2010 and 2009 was as follows:



	Current			Deferred			Total
	(in millions)
Year ended December 31, 2011:
U.S. Federal	$	—		$	(1.5	)	$	(1.5	)
State	3.5			0.3			3.8
	$	3.5		$	(1.2	)	$	2.3
Year ended December 31, 2010:
U.S. Federal	$	(21.2	)	$	14.9		$	(6.3	)
State	(2.3		)	(3.1		)	(5.4		)
	$	(23.5	)	$	11.8		$	(11.7	)
Year ended December 31, 2009:
U.S. Federal	$	3.2		$	(9.4	)	$	(6.2	)
State	6.9			(1.0		)	5.9
	$	10.1		$	(10.4	)	$	(0.3	)

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles our effective income tax rate from continuing operations to the federal statutory tax rate of 35%:



	2011					2010					2009
	Percent		Amount			Percent		Amount			Percent		Amount
	(dollars in millions)
Federal income tax benefit at the statutory rate	35.0	%	$	11.4		(35.0	)%	$	(18.4	)	(35.0	)%	$	(22.1	)
State income taxes, net of federal tax benefits	14.9	%	4.8			(5.8	)%	(3.0		)	4.6	%	2.9
Non-deductible expenses and other	2.7	%	0.8			1.4	%	0.7			2.6	%	1.6
Forfeiture of equity compensation	3.7	%	1.2			—	%	—			—	%	—
Non-deductible donation of land	3.5	%	1.2			—	%	—			—	%	—
Dividend income from foreign subsidiary	—	%	—			3.5	%	1.8			—	%	—
Reversal of reserves for unrecognized tax benefits	(1.7	)%	(0.5		)	(4.1	)%	(2.1		)	1.9	%	1.2
Credits	(3.7	)%	(1.2		)	(13.7	)%	(7.2		)	(3.1	)%	(2.0		)
Change in valuation allowance/reserve of deferred tax assets	(47.2	)%	(15.4		)	31.4	%	16.5			28.6	%	18.1
Income tax (benefit) expense from continuing operations	7.2	%	$	2.3		(22.3	)%	$	(11.7	)	(0.4	)%	$	(0.3	)

Allocation of Income Tax (Expense) Benefit Between Continuing Operations, Discontinued Operations and Equity

The following table shows the allocation of income tax (expense) benefit between continuing operations, discontinued operations and equity:



	For the year ended December 31,
	2011			2010			2009
	(in millions)
Income (loss) from continuing operations before income taxes	$	32.5		$	(52.5	)	$	(63.4	)
Income tax benefit (expense) allocated to continuing operations	(2.3		)	11.7			0.3
Income (loss) from continuing operations	30.2			(40.8		)	(63.1		)
Income (loss) from discontinued operations before income taxes	(32.9		)	27.1			(192.3		)
Income tax benefit (expense) allocated to discontinued operations	0.2			(9.7		)	(3.0		)
Income (loss) from discontinued operations	(32.7		)	17.4			(195.3		)
Net loss	$	(2.5	)	$	(23.4	)	$	(258.3	)
Income tax benefit allocated to additional paid in capital	$	—		$	—		$	—
Income tax benefit (expense) allocated to other comprehensive income	$	0.2		$	—		$	—

Schedule of Deferred Tax Assets and Liabilities

At December 31, 2011 and 2010, the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were:



	December 31,
	2011			2010
	(in millions)
Deferred tax assets—current:
Workers’ compensation insurance reserve	$	2.6		$	3.8
Allowance for doubtful accounts	3.0			2.2
Legal and merger costs	2.7			4.5
Other	7.5			6.9
Less valuation allowance	(15.1		)	(17.2		)
Total deferred tax assets—current	0.7			0.2
Deferred tax liabilities—current:
Prepaid expenses	(3.2		)	(3.2		)
Other	—			(0.2		)
Total deferred tax liabilities—current	(3.2		)	(3.4		)
Net current deferred tax liabilities	$	(2.5	)	$	(3.2	)
Deferred tax assets—non-current:
Federal tax credit carry-forwards	$	28.3		$	21.2
Federal net operating loss carry-forwards	77.3			71.7
State net operating loss carry-forwards	11.7			9.9
Capital loss carry-forward	6.4			6.5
Los Angeles Revitalization Zone tax credits	—			4.3
Deferred compensation	2.9			4.6
Pre-opening expenses capitalized for tax purposes	10.9			10.1
Unrealized loss on equity securities	(0.4		)	(0.3		)
Share-based compensation expense—book cost	12.1			16.5
Land, building, riverboats and equipment, net	31.6			45.8
Other	11.2			6.5
Less valuation allowance	(190.3		)	(196.3		)
Total deferred tax assets—non-current	1.7			0.5
Deferred tax liabilities—non-current:
Intangible assets	(5.1		)	(4.1		)
Total deferred tax liabilities—non-current:	(5.1		)	(4.1		)
Net non-current deferred tax liabilities	$	(3.4	)	$	(3.6	)

The following table summarizes the total deferred tax assets and total deferred tax liabilities provided in the previous table:



	December 31,
	2011			2010
	(in millions)
Total deferred tax assets	$	207.7		$	214.2
Less valuation allowances	(205.4		)	(213.4		)
Less total deferred tax liabilities	(8.2		)	(7.6		)
Net deferred tax liabilities	$	(5.9	)	$	(6.8	)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to uncertain tax benefits for 2011 and 2010, excluding any interest or penalties:



	2011			2010
	(in millions)
Balance at January 1	$	8.2		$	19.5
Gross increases - tax positions in prior periods	1.0			—
Gross decreases - tax positions in prior periods	(0.1		)	(8.3		)
Gross increases (decreases) - tax positions in current period	0.2			(0.6		)
Statute of limitation expirations	(1.6		)	(2.4		)
Balance as of December 31	$	7.7		$	8.2

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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