This excerpt taken from the IWA 10-Q filed May 8, 2006.
Other, Net. Other, net was a net expense of $50,000 for the three months ended March 31, 2006 compared to $79,000 in the same period in 2005.
Income Tax Expense
The Company recognized no income tax expense or benefit during the three month periods ended March 31, 2006 and 2005 because all of the net deferred tax assets and liabilities, other than AMT tax credit carryforwards that have no expiration date, continue to be fully reserved for by a valuation allowance or the net tax effect is recorded as a component of other comprehensive income for those deferred liabilities associated with the unrealized gain on the interest rate swaps. Our unused tax net operating loss carryforward was approximately $207 million and will expire between 2020 and 2024. As of March 31, 2006, we had an alternative minimum tax liability of $172,000. We will continue to assess the recoverability of our deferred tax assets and the related valuation allowance. To the extent we continue to generate taxable income and it is determined a valuation allowance is no longer required the tax benefits of the remaining tax assets will be recognized at that time.
Our initial public offering resulted in an ownership change for purposes of Section 382 of the Internal Revenue Code, and consequently our ability to utilize our net operating losses will be subject to limitation each year. We currently anticipate that, as a result of such ownership change, we will generally be limited by Section 382 to utilizing approximately $19 million of our pre-transaction net operating losses annually. However, Internal Revenue Code Section 338 may allow for an increase in this allowance for tax periods ending in 2005 through 2009. After 2009, the IRC Section 382 limitation will apply. Furthermore, we expect that we will continue to be able to take deductions related to the amortization of intangibles in excess of the amount recorded for book purposes in the amount of approximately $40 million annually through 2014.