Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

AV HOMES, INC. AND SUBSIDIARIES

(Dollars in thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses			Deduction/ (Addition)			Balance at End of Period
Year ended December 31, 2013:
Allowance for doubtful accounts	$	1,413	$	—	(1)	$	1,413		$	—
Valuation allowance for deferred tax assets	126,533		3,699		(2)	—			130,232
Total	$	127,946	$	3,699		$	1,413		$	130,232
Year ended December 31, 2012:
Allowance for doubtful accounts	$	1,508	$	—		$	95		$	1,413
Valuation allowance for deferred tax assets	91,483		35,050		(2)	—			126,533
Total	$	92,991	$	35,050		$	95		$	127,946
Year ended December 31, 2011:
Allowance for doubtful accounts	$	1,217	$	421		$	(130	)	$	1,508
Valuation allowance for deferred tax assets	22,522		68,961		(2)	—			91,483
Total	$	23,739	$	69,382		$	(130	)	$	92,991

(1)We outsourced the management of our amenities to a third party service organization. Therefore we no longer carry a club fees receivable or its associated valuation allowance on our books as of December 31, 2013.

(2)  In accordance with ASC 740, we evaluated our deferred tax assets quarterly to determine if valuation allowances are required. ASC 740 requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than not” standard. During the year ended December 31, 2011 we recognized an increase of $68,961 in the valuation allowance. As of December 31, 2011, our deferred tax asset valuation allowance was $91,483.  During the year ended December 31, 2012 we recognized an increase of $35,050 in the valuation allowance.  As of December 31, 2012, our deferred tax valuation allowance was $126,533. During the year ended December 31, 2013, we recognized an increase of $3,699 in the valuation allowance. In future periods, the allowance could be reduced based on sufficient evidence indicating that it is more likely than not that a portion of our deferred tax assets will be realized.