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Income Taxes
3 Months Ended
Mar. 31, 2012
Income Tax Expense (Benefit) [Abstract]  
Income Taxes
Income Taxes:

Sterling uses an estimate of future earnings and an evaluation of its loss carryback ability and tax planning strategies to determine whether it is more likely than not that it will realize the benefit of its deferred tax asset. Sterling determined that it did not meet the required threshold as of March 31, 2012 and December 31, 2011, and accordingly, had a full valuation allowance against its net deferred tax asset. As of March 31, 2012, the reserved net deferred tax asset was approximately $322 million, including approximately $290 million of net operating loss and tax credit carry-forwards. This is compared with a reserved deferred tax asset of approximately $327 million, including approximately $285 million of net operating loss and tax credit carry-forwards, as of December 31, 2011.

With regard to the deferred tax asset, the benefits of Sterling’s accumulated tax losses would be reduced in the event of an “ownership change,” as determined under Section 382 of the Internal Revenue Code. During 2010, in order to preserve the benefits of these tax losses, Sterling’s shareholders approved a protective amendment to the restated articles of incorporation and Sterling’s board adopted a tax preservation rights plan, both of which restrict certain stock transfers that would result in an investor acquiring more than 4.95% of Sterling’s total outstanding common stock.