Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of (Loss)/Income Before Income Taxes

The components of (loss)/income before income taxes and the related (benefit)/provision for U.S. and other income taxes were as follows:



(Loss)/Income before Income Taxes	Year Ended December 31,
(In millions)	2012			2011			2010
United States	$	(2,341.9	)	$	(1,271.5	)	$	(1,329.3	)
Outside of the U.S.	88.7			38.7			(12.6		)
	$	(2,253.2	)	$	(1,232.8	)	$	(1,341.9	)

Components of Income Tax Provision (Benefit)



Income Tax (Benefit)/Provision	Year Ended December 31,
(In millions)	2012			2011			2010
United States
Current
Federal	$	(72.0	)	$	(1.0	)	$	(215.1	)
State	5.6			(16.4		)	(7.7		)
Deferred
Federal	(726.7		)	(450.6		)	(221.9		)
State	(87.1		)	(70.1		)	(61.1		)
Outside of the U.S.
Current	13.0			8.7			10.4
Deferred	(3.3		)	(5.3		)	2.9
	$	(870.5	)	$	(534.7	)	$	(492.5	)

Allocation of Total Income Taxes

Total income taxes were allocated as follows:



Income Tax (Benefit)/Provision	Year Ended December 31,
(In millions)	2012			2011			2010
Loss from continuing operations, before income taxes	$	(870.5	)	$	(534.7	)	$	(492.5	)
Discontinued operations	50.1			27.8			23.8
Accumulated other comprehensive income/(loss)	10.9			70.9			(10.5		)
Retained earnings	—			6.0			—
Additional paid in capital	(2.1		)	11.6			—

Effective Income Tax Rate Reconciliation

The differences between the statutory federal income tax rate and the effective tax rate expressed as a percentage of income/(loss) from continuing operations before taxes were as follows:



	Year Ended December 31,
	2012		2011		2010
Statutory tax rate	35.0	%	35.0	%	35.0	%
Increases/(decreases) in tax resulting from:
State taxes, net of federal tax benefit	4.4		9.2		5.8
Valuation allowance	(2.3	)	(6.6	)	(3.2	)
Foreign income taxes	—		2.8		1.2
Goodwill	(1.4	)	0.1		(2.2	)
Stock based compensation	(0.2	)	—		—
Officers’ life insurance/insurance proceeds	0.2		(0.3	)	0.1
Acquisition and integration costs	(0.2	)	—		—
Reserves for uncertain tax positions	3.1		(0.2	)	(0.1	)
Deferred tax liability adjustment	—		3.3		—
Other	—		0.1		0.1
Effective tax rate	38.6	%	43.4	%	36.7	%

Components of Deferred Tax Assets and Liabilities

The major components of the deferred tax assets and liabilities in our Consolidated Balance Sheets as of December 31, 2012 and 2011 were as follows:



(In millions)	2012		2011
Deferred tax assets
State net operating losses	$	180.3	$	155.9
Foreign net operating losses	37.8		35.4
Federal net operating loss	850.2		617.7
Compensation programs	120.6		112.0
Allowance for doubtful accounts	87.6		112.2
Self-insurance reserves	15.7		28.4
Accrued expenses	44.6		57.0
Federal tax credits	33.7		22.4
Federal indirect tax benefits of uncertain state tax positions	52.8		59.6
Outside basis difference in foreign subsidiaries	61.5		—
Other	20.6		57.2
Subtotal	1,505.4		1,257.8
Less: valuation allowance	330.0		210.7
Total deferred tax assets	1,175.4		1,047.1
Deferred tax liabilities
Depreciation and other property-related items	2,241.7		2,540.8
Deferred cancellation of debt income and other debt-related items	1,913.4		1,983.1
Management and other contracts	3.9		8.2
Intangibles	1,255.7		1,517.5
Prepaid expenses	28.3		28.1
Investments in non-consolidated affiliates	3.5		(3.0		)
Total deferred tax liabilities	5,446.5		6,074.7
Net deferred tax liability	$	4,271.1	$	5,027.6

Deferred Tax Assets and Liabilities as Presented in Consolidated Balance Sheets

Deferred tax assets and liabilities presented in our Consolidated Balance Sheets as of December 31, 2012 and 2011 were as follows:



(In millions)	2012		2011
Assets:
Deferred income taxes (current)	$	114.9	$	170.5
Liabilities:
Liabilities held for sale (non-current)	$	51.9	$	66.2
Deferred income taxes (non-current)	4,334.1		5,131.9
Net deferred tax liability	$	4,271.1	$	5,027.6

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows:



(In millions)
Balance at January 1, 2010	$	362.0
Additions based on tax positions related to the current year	8.8
Additions for tax positions of prior years	224.2
Reductions for tax positions for prior years	(26.5		)
Settlements	—
Expiration of statutes	(1.1		)
Balance at December 31, 2010	$	567.4
Additions based on tax positions related to the current year	4.2
Additions for tax positions of prior years	2.0
Reductions for tax positions for prior years	(36.4		)
Settlements	—
Expiration of statutes	(4.9		)
Balance at December 31, 2011	$	532.3
Additions based on tax positions related to the current year	9.5
Additions for tax positions of prior years	3.3
Reductions for tax positions for prior years	(203.7		)
Settlements	(7.9		)
Expiration of statutes	(0.1		)
Balance at December 31, 2012	$	333.4