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Income Taxes (Notes) | 9 Months Ended
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Sep. 30, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | INCOME TAXES The income tax provision from continuing operations was $0.1 million for the three months ended September 30, 2014 and the income tax benefit was $1.0 million for the nine months ended September 30, 2014. The income tax benefit from continuing operations was $18.5 million and $57.8 million for the three and nine months ended September 30, 2013, respectively. Included in the income tax benefit was a discrete item for reversals of previously accrued amounts associated with liabilities for unrecognized benefits of $1.0 million for the nine months ended September 30, 2014 and $0.7 million for the corresponding period in 2013. In 2013 there was an income tax benefit from continuing operations because there was income in other components of the financial statements. In 2014, after adjustment for nontaxable reorganization items, there are pretax losses from continuing operations and no other components of the financial statements. Therefore, except for discrete items, there is no income tax benefit from continuing operations. Intraperiod tax allocation rules require that all items, including other comprehensive income and discontinued operations, be considered for purposes of determining the amount of tax benefit that results from a loss in continuing operations. When there is a full valuation allowance against deferred tax assets and there are pretax losses from continuing operations and income in other components of the financial statements (e.g., discontinued operations and other comprehensive income), the income tax benefit from pretax losses from continuing operations is limited to the amount of income tax expense recorded on all items other than continuing operations. The income tax benefit from continuing operations consists of the income tax benefit calculated using an estimated annual effective tax rate as well as discrete items. The estimated annual effective tax rate applied to pretax losses from continuing operations for the interim period is calculated using the estimated full-year plan for ordinary income and the year-to-date amounts for discontinued operations and other comprehensive income. The income tax expense on all items other than continuing operations is recorded based on year-to-date amounts. A full valuation allowance against net deferred taxes was first recorded in 2011 due to cumulative losses incurred in recent years and due to substantial uncertainty to generate future taxable income that would lead to realization of the net deferred tax assets. The valuation allowance results in the Company’s inability to record tax benefits on future losses until it generates sufficient taxable income to support the elimination of the valuation allowance. However, the valuation allowance will not affect the Company’s ability to use its deferred tax assets if it generates taxable income in the future. Deferred taxes are reported on the balance sheet as current or noncurrent based on the balance sheet classification of the related assets and liabilities to which the deferred taxes are attributable. Therefore, the deferred taxes related to the intangibles are classified as noncurrent deferred tax liabilities because the intangibles are classified as noncurrent on the balance sheet whereas the deferred taxes related to the deferred revenue are classified as a deferred tax current liability because deferred revenue is classified as a current liability. Because there is a full valuation allowance against net deferred taxes, it is anticipated that there will be no net impact to the tax provision as these deferred tax liabilities reverse over time either through amortization or recognition of the deferred revenue for tax purposes. After allocation of the valuation allowance between current and noncurrent deferred tax assets and netting deferred tax assets and liabilities, the company has a net current deferred tax liability of $26.4 million and a net noncurrent deferred tax asset of $26.4 million as of September 30, 2014. As a result of the adoption of fresh start accounting upon emergence from bankruptcy as discussed in Note 3, the Company recorded adjustments to its deferred taxes to reflect the increase in book basis of certain intangible assets that have no basis for tax purposes and to reflect the elimination of almost all deferred revenue for book accounting purposes that continues to be deferred for tax purposes. Upon the Company’s emergence on September 30, 2014 from Chapter 11 bankruptcy, the amount of the Company’s aggregate indebtedness was reduced. The reduction in the Company’s indebtedness will result in cancellation of debt (“COD”) income for tax purposes of approximately $340 million for the calendar year ending 2014. Because realization of such income will occur under the Bankruptcy Code, the Company will reduce federal and state net operating losses (“NOL”), tax credits, and the tax basis in property that would otherwise be available to offset taxable income starting in 2015. On an ongoing basis, the Company monitors activity in its 5% shareholder base for substantial changes in ownership as defined under Internal Revenue Code Section 382 (“Section 382”). The Company experienced an ownership change for tax purposes (i.e., a more than 50% change in stock ownership change on the September 30, 2014 Effective Date). As a result, the use of any of the Company’s federal and state NOL carryforwards and tax credits generated prior to the ownership change (that are not reduced by the amount of the COD income) will be subject to an annual limitation of approximately $3 million. As of September 30, 2014, the federal NOLs not reduced by COD income, but subject to the annual limitation, are approximately $170 million. The federal NOLs can be carried forward for 20 years; therefore, based on the annual limitation, the maximum amount of NOLs that can be utilized in the future is approximately $60 million, subject further to the net unrealized built-in loss rules as described below. All credits of the Company are expected to be reduced by COD income. The Company continues to monitor its ownership shifts. Section 382(l)(5) provides for an exception to the annual limitations of Section 382 for certain corporations that emerge from bankruptcy. The Company is evaluating whether or not the exception has been met. In addition, certain future requirements must be met to receive the benefits as well. The Company has the ability to elect out of the benefits of Section 382(l)(5) and apply the annual limitation. That election must be made with the filing of the Company’s calendar year 2014 federal income tax return, which is due no later than September 15, 2015. The Company will continue to monitor its tax position as well as evaluate its ability to qualify for and its desire to elect the benefits of Section 382(l)(5). The Company is required to determine whether it had a net unrealized built-in gain (“NUBIG”) or net unrealized built-in loss (“NUBIL”) at the September 30, 2014 Effective Date. The Company believes that there was a NUBIL at the Effective Date. As a result, certain depreciation and loss deductions recognized during the five-year period beginning on the Effective Date would be subject to the same Section 382 annual limitation (as described above) if the Company does not qualify for the benefits under Section 382(l)(5) or if the Company qualifies, but elects out of that exception. The Company files income tax returns with the U.S. government and various states and foreign jurisdictions. In the second quarter of 2014, the Internal Revenue Service ("IRS") completed the Company’s federal income tax return examination for tax years 2008 through 2011 and made no adjustments or changes to the reported tax.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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