Taxes

6 Months Ended

Jun. 30, 2011

Taxes

Note 18. Taxes

For each of the three and six months ended June 30, 2011 and 2010, we recognized a provision for income taxes of less than $1 million. The following is a reconciliation of the statutory federal and state tax rates to our projected annual effective rate at June 30, 2011 and 2010.

Reconciliation of Statutory Tax Rate to Effective Tax Rate

	June 30,
	2011			2010
Federal statutory rate		34.0	%		34.0	%
State statutory rate, net of Federal tax effect		7.2	%		7.2	%
Differences in taxable income from GAAP income		(41.1	)%		(41.1	)%
Effective Tax Rate		0.1	%		0.1	%

We assessed our tax positions for all open tax years (Federal — years 2006 to 2009, State — years 2005 to 2009) and concluded at June 30, 2011 and December 31, 2010, that we have no material unrecognized tax liabilities.