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INCOME TAXES
 12 Months Ended
Dec. 31, 2011
INCOME TAXES  
INCOME TAXES

12.   INCOME TAXES

        GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In 2011, tax liability and accrued interest on uncertain tax positions was reduced by $326,000 and $353,000, respectively, because of expiration of statutes of limitations and a correction related to prior years (Note 15). As of December 31, 2011, total accrued interest for uncertain income tax positions was $830,000.

        The Company recognizes interest accrued related to unrecognized tax benefits as interest expense and penalties in general and administrative expense in its consolidated statement of operations and such amounts are included in income taxes payable on the Company's consolidated balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 
   2011   2010  
 
   (in thousands)
  

Balance at beginning of year

   $ 952   $ 899  

Adjustments for tax provisions of prior years

     (211 )   53  

Expiration of statutes of limitations

     (115 )   —  
           

Balance at end of year

   $ 626   $ 952  
           

        At December 31, 2011 there were no unrecognized tax benefits for which the liability for such taxes was recognized as deferred tax liabilities because such unrecognized revenue items have reversed. At December 31, 2011 and 2010, there were $232,000 and $558,000 of unrecognized tax benefits that, if recognized, would affect the effective tax rate.

        The components of the income tax benefit for 2011 and 2010 were as follows:

 
   2011   2010  
 
   (in thousands)
  

Current

              

Federal

   $ (134 ) $ (283 )

State

     —     32  
           

Total

     (134 )   (251 )
           

Income tax benefit—continuing operations

   $ (134 ) $ (251 )
           

        Reconciliations between the total income tax benefit and the amount computed using the statutory federal rate of 35% was as follows:

 
   2011   2010  
 
   (in thousands)
  

Federal income tax benefit at statutory rate

   $ (3,389 ) $ (4,087 )

Adjusted for:

              

Valuation allowance

     3,871     4,014  

Provision for uncertain tax positions

     (134 )   53  

Permanent differences and other

     (482 )   (231 )
           

Income tax benefit—continuing operations

   $ (134 ) $ (251 )
           

        Deferred tax assets (liabilities) were comprised of the following temporary differences as of December 31, 2011 and 2010:

 
   2011   2010  
 
   (in thousands)
  

Net operating loss and tax credit carryforwards

   $ 35,917   $ 28,479  

Joint venture and other investments

     11,242     12,839  

Accrued retirement benefits

     9,448     7,962  

Property net book value

     4,168     11,083  

Deferred revenue

     1,358     761  

Stock compensation

     253     3,302  

PGC deferred credit

     —     2,035  

Reserves and other

     1,385     1,523  
           

Total deferred tax assets

     63,771     67,984  

Valuation Allowance

     (61,386 )   (65,241 )
           

Deferred condemnation proceeds

     (2,385 )   (2,562 )

Other

     —     (181 )
           

Total deferred tax liabilities

     (2,385 )   (2,743 )
           

Net deferred tax assets (liabilities)

   $ —   $ —  
           

        Valuation allowances have been established to reduce future tax benefits expected to be realized. The Company had $74.4 million in federal net operating loss carry forwards at December 31, 2011, that expire from 2028 through 2031. Net operating loss for state income tax purposes that expire from 2028 through 2031 totaled $88.3 million at December 31, 2011. The Company's federal income tax returns for 2005 through 2008 are currently under examination and the Internal Revenue Service has proposed approximately $14.3 million of additional taxable income. The Company disagrees with approximately $13.9 million of the proposed adjustments and intends to continue to defend its positions.