Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows:

	Years Ended December 31,
	2012		2011			2010
($ in thousands)
Current
Federal	$	-	$	-		$	-
State		341		49			467
Total current tax expense		341		49			467
Deferred
Federal		19,707		(104,227	)		(172	)
State		6,982		(28,250	)		218
Total deferred tax expense (benefit)		26,689		(132,477	)		46
Total expense (benefit) for income taxes	$	27,030	$	(132,428	)	$	513

Reconciliation of Provision for Income Taxes

The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the periods indicated:

	Years Ended December 31,
	2012					2011					2010
($ in thousands)
Tax at statutory rate	$	22,645		35	%	$	4,547		35	%	$	3,554		35	%
State taxes, net of federal benefit		4,793		7			6,222		48			442		4
Affiliated stock loss		-		-			3,283		25			(72,397	)	(713	)
Contingency reserve		-		-			27,911		215			-		-
Change in valuation allowance		(242	)	-			(174,527	)	(1,343	)		69,109		681
Other, net		(166	)	-			136		1			(195	)	(2	)
Income tax expense (benefit)	$	27,030		42	%	$	(132,428	)	(1,019	)%	$	513		5	%

Summary of Tax Effects of Temporary Differences

Deferred taxes resulted from temporary differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences are as follows:

	December 31,
	2012			2011
($ in thousands)
Deferred tax assets:
Intangible assets	$	51,494		$	65,380
Net operating losses		49,001			63,886
Capital loss carryforward		1,122			1,760
Other		8,707			9,139
Gross deferred tax assets		110,324			140,165
Valuation allowance		(1,611	)		(3,336	)
Gross deferred tax assets after valuation allowance		108,713			136,829
Deferred tax liabilities:
Intangible assets		(10,884	)		(12,131	)
Other investments		(906	)		(1,006	)
Gross deferred tax liabilities		(11,790	)		(13,137	)
Deferred tax assets (liability), net	$	96,923		$	123,692

Summary of Activity in Unrecognized Tax Benefits

Activity in unrecognized tax benefits is as follows:

	Years Ended December 31,
	2012			2011		2010
($ in thousands)
Balance, beginning of year	$	34,139		$	-	$	-
Decrease related to tax positions taken in prior years		(191	)		-		-
Increase related to positions taken in the current year		-			34,139		-
Balance, end of year	$	33,948		$	34,139	$	-