Income Taxes (Tables)

12 Months Ended

Jan. 31, 2013

The income tax expense (benefit) related to continuing operations consists of the following:



	Years Ended January 31,
	2013			2012			2011
	(in thousands)
Current
Federal	$	(52,755	)	$	(9,776	)	$	(3,694	)
State	(6,039		)	(140		)	4,397
	(58,794		)	(9,916		)	703
Deferred
Federal	49,165			(41,259		)	62,506
State	(1,575		)	(12,511		)	5,656
	47,590			(53,770		)	68,162
Total income tax expense (benefit)	$	(11,204	)	$	(63,686	)	$	68,865

Effective tax rate for income taxes from continuing operations

The effective tax rate for income taxes from continuing operations varies from the federal statutory rate of 35% due to the following items:



	Years Ended January 31,
	2013			2012			2011
	(dollars in thousands)
Earnings (loss) before income taxes	$	(79,759	)	$	(109,185	)	$	196,327
Net gain on change in control of interests	6,766			—			—
Equity in earnings (loss) of unconsolidated entities, net of impairment	44,631			(61,039		)	(30,194		)
Less: Noncontrolling interests	1,506			(2,240		)	(19,320		)
Earnings (loss) from continuing operations, including noncontrolling interest, before income taxes	$	(26,856	)	$	(172,464	)	$	146,813
Income taxes computed at the statutory rate	$	(9,400	)	$	(60,362	)	$	51,385
Increase (decrease) in tax resulting from:
State taxes, net of federal benefit	(4,969		)	(6,517		)	4,997
State net operating loss, net of federal benefit	1,667			2,474			466
General Business Credits	(947		)	446			(1,556		)
Valuation allowance	(2,048		)	(6,414		)	(86		)
Charitable contributions	2,628			2,204			4,040
Permanent adjustments	3,037			38			390
Conversion/Exchange of senior debt	—			3,780			10,274
Other items	(1,172		)	665			(1,045		)
Total income tax expense (benefit)	$	(11,204	)	$	(63,686	)	$	68,865
Effective tax rate	41.72		%	36.93		%	46.91		%
The components of the deferred income tax expense (benefit) for continuing operations are as follows:
Excess of tax over financial statement depreciation and amortization	$	20,442		$	17,227		$	8,169
Costs on land and rental properties under development expensed for tax purposes	11,048			34,333			29,629
Revenues and expenses recognized in different periods for tax and financial statement purposes	50,214			(51,013		)	30,679
Difference between tax and financial statements related to unconsolidated entities	207			(18,674		)	(13,339		)
Impairment of real estate and land held for divestiture	(16,178		)	(40,346		)	(1,133		)
Deferred state taxes, net of federal benefit	986			(3,703		)	1,556
Utilization of (addition to) tax loss carryforward excluding effect of stock options	(16,230		)	10,974			13,066
Valuation allowance	(2,048		)	(6,414		)	(86		)
General Business Credits	(947		)	446			(1,556		)
Alternative Minimum Tax credits	96			3,400			1,177
Deferred income tax expense (benefit)	$	47,590		$	(53,770	)	$	68,162

Components of deferred income tax liability

The components of the deferred income tax liability are as follows:



	At January 31,
	Temporary Differences						Deferred Tax
	2013			2012			2013			2012
	(in thousands)
Depreciation	$	493,489		$	430,713		$	191,390		$	167,043
Capitalized costs	1,018,375			1,043,938			394,956			404,871
Tax loss carryforward	(161,758		)	(115,385		)	(56,615		)	(40,385		)
State loss carryforward, net of federal benefit	—			—			(23,974		)	(25,473		)
Valuation allowance	—			—			53,282			55,330
Federal tax credits and other carryforwards	—			—			(58,094		)	(57,503		)
Other comprehensive loss	(168,585		)	(196,775		)	(65,382		)	(76,315		)
Basis in unconsolidated entities	199,359			156,445			77,317			60,674
Other	(83,747		)	(130,378		)	(38,474		)	(55,202		)
Total	$	1,297,133		$	1,188,558		$	474,406		$	433,040

Net deferred tax liability



	At January 31,
	2013			2012
	(in thousands)
Deferred tax liabilities	$	1,832,038		$	1,802,841
Deferred tax assets	1,410,914			1,425,131
Less: valuation allowance ⁽¹⁾	(53,282		)	(55,330		)
	1,357,632			1,369,801
Net deferred tax liability	$	474,406		$	433,040


(1)	The valuation allowance is related to state net operating losses and bonus depreciation, general business credits and charitable contributions.

Unrecognized tax benefits

A reconciliation of the total amounts of the Company’s unrecognized tax benefits, exclusive of interest and penalties, is depicted in the following table:



	Unrecognized Tax Benefit
	January 31,
	2013			2012
	(in thousands)
Beginning balance, February 1	$	788		$	408
Gross increases (decreases) for tax positions of prior years	(107		)	458
Gross increases for tax positions of current year	—			—
Settlements	(97		)	—
Lapse of statutes of limitation	—			(78		)
Unrecognized tax benefits balance at January 31, 2013 and 2012	$	584		$	788