v2.4.0.8

Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Taxes |
Income Taxes | Note 11. Income Taxes The components of income (loss) before income taxes are as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Domestic |  | $ | (50,551 | ) | $ | 172,612 |  | $ | 290 |
Foreign |  |  | 16,515 |  |  | 22,072 |  |  | 25,485 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total income (loss) before income taxes |  | $ | (34,036 | ) | $ | 194,684 |  | $ | 25,775 |
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The components of the benefit (provision) for income taxes are as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Current benefit (provision): |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,118 |  | $ | 21,086 |  | $ | (26,450 | )
State |  |  | 6,531 |  |  | 1,943 |  |  | (291 | )
Foreign |  |  | (5,992 | ) |  | (7,775 | ) |  | (3,734 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total current benefit (provision) |  |  | 1,657 |  |  | 15,254 |  |  | (30,475 | )
Deferred benefit (provision): |  |  |  |  |  |  |  |  |  |
Federal |  |  | 26,511 |  |  | 7,841 |  |  | (464 | )
State |  |  | 10,074 |  |  | (6,720 | ) |  | 9,438 |
Foreign |  |  | (805 | ) |  | (46 | ) |  | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total deferred benefit (provision) |  |  | 35,780 |  |  | 1,075 |  |  | 8,974 |
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Total income tax benefit (provision), net |  | $ | 37,437 |  | $ | 16,329 |  | $ | (21,501 | )
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The actual tax provisions for the years ended December 31, 2013, 2012 and 2011 reconcile to the amounts computed by applying the statutory federal tax rate to income (loss) before income taxes as shown below:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |  | 2011 |
Statutory rate |  |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of Federal benefit |  |  | 21.0 | % |  | 0.8 | % |  | (4.8 | )%
Dividend received deduction |  |  | — |  |  | (1.8 | )% |  | — |
Permanent differences |  |  | (10.7 | )% |  | 1.1 | % |  | 14.0 | %
Tax credits |  |  | 48.7 | % |  | (5.0 | )% |  | (12.5 | )%
Valuation allowance |  |  | 14.2 | % |  | (39.0 | )% |  | 50.5 | %
Other |  |  | 1.8 | % |  | 0.5 | % |  | 1.2 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total effective tax rate |  |  | 110.0 | % |  | (8.4 | )% |  | 83.4 | %
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The components of the deferred tax assets and liabilities are as follows:
|  | As of December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Net operating losses, credit and other carryforwards |  | $ | 419,646 |  | $ | 461,931 |
Unrealized losses on investments, net |  |  | 31,067 |  |  | 14,757 |
Accrued expenses |  |  | 33,215 |  |  | 26,438 |
Stock-based compensation |  |  | 8,117 |  |  | 14,942 |
Other asset |  |  | 12,247 |  |  | 2,848 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total deferred tax assets |  |  | 504,292 |  |  | 520,916 |
Valuation allowance |  |  | (79,370 | ) |  | (69,224 | )
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Deferred tax assets after valuation allowance |  |  | 424,922 |  |  | 451,692 |
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Deferred tax liabilities: |  |  |  |  |  |  |
Depreciation and amortization |  |  | (841,407 | ) |  | (798,878 | )
Other liabilities |  |  | (755 | ) |  | (1,454 | )
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Total deferred tax liabilities |  |  | (842,162 | ) |  | (800,332 | )
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Total net deferred tax liabilities |  | $ | (417,240 | ) | $ | (348,640 | )
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Current portion of net deferred tax assets |  | $ | 69,633 |  | $ | 23,317 |
Noncurrent portion of net deferred tax liabilities |  |  | (486,873 | ) |  | (371,957 | )
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Total net deferred tax liabilities |  | $ | (417,240 | ) | $ | (348,640 | )
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Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We evaluate our deferred tax assets for realization and record a valuation allowance when we determine that it is more likely than not that the amounts will not be realized. Overall, our net deferred tax assets were offset by a valuation allowance of $79.4 million and $69.2 million as of December 31, 2013 and 2012, respectively. The change in the valuation allowance primarily relates to an increase in realized and unrealized losses that are capital in nature and an increase in the net operating loss carryforwards of certain foreign subsidiaries. Tax benefits of net operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. Net operating loss carryforwards for tax purposes were $1.02 billion as of December 31, 2013. A substantial portion of these net operating loss carryforwards will begin to expire in 2020. Capital loss carryforwards for tax purposes were $45.3 million as of December 31, 2013. A substantial portion of these capital loss carryforwards will begin to expire in 2015. Currently, we have a valuation allowance against all capital loss carryforwards that exist for tax purposes. Tax credits available to offset future tax liabilities are $26.2 million as of December 31, 2013. A substantial portion of these tax credits will begin to expire in 2026. Additionally, tax benefit from excess tax deductions attributable to stock-based compensation has resulted in $5.9 million of net operating loss carryforwards that will not be recognized as a credit to additional paid in capital until such deductions reduce taxes payable. We follow the tax law ordering rules, which assume that stock option deductions are realized when they have been used for tax purposes. As of December 31, 2013, we had undistributed earnings attributable to foreign subsidiaries for which no provision for U.S. income taxes or foreign withholding taxes has been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely. It is not practicable to determine the amount of the unrecognized deferred tax liability at this time. Accounting for Uncertainty in Income Taxes In addition to filing U.S. federal income tax returns, we file income tax returns in all states that impose an income tax. As of December 31, 2013, we are currently under a U.S. federal income tax examination for fiscal year 2009 and 2010. We also file income tax returns in the United Kingdom, The Netherlands, Brazil, India and a number of other foreign jurisdictions where we have insignificant operations. We generally are open to income tax examination in these foreign jurisdictions in taxable years beginning in 2003. As of December 31, 2013, we have no on-going significant current income tax examinations in process in our foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows:
|  | For the Years Ended December 31, |
--- | --- | --- | ---
Unrecognized tax benefit |  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Balance as of beginning of period |  | $ | 34,677 |  | $ | 48,874 |  | $ | 29,999 |
Additions from Hughes Acquisition |  |  | — |  |  | — |  |  | 3,119 |
Additions based on tax positions related to the current year |  |  | 81 |  |  | 158 |  |  | — |
Additions based on tax positions related to prior years |  |  | 9,929 |  |  | 3,723 |  |  | 16,630 |
Reductions based on tax positions related to prior years |  |  | (1,253 | ) |  | (855 | ) |  | (874 | )
Reductions based on tax settlements |  |  | (115 | ) |  | (16,587 | ) |  | — |
Reductions based on expirations of statute of limitations |  |  | — |  |  | (636 | ) |  | — |
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Balance as of end of period |  | $ | 43,319 |  | $ | 34,677 |  | $ | 48,874 |
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As of December 31, 2013, we had $43.3 million of unrecognized income tax benefits, of which $42.5 million, if recognized, would affect our effective tax rate. As of December 31, 2012, we had $34.7 million of unrecognized income tax benefits, of which $34.7 million, if recognized, would affect our effective tax rate. We do not believe that the total amount of unrecognized income tax benefits will significantly increase or decrease within the next twelve months due to the lapse of statute of limitations or settlement with tax authorities. Our policy related to interest and penalties for uncertain tax positions is to record them as a component of income tax expense in the accompanying statement of operations. During 2013, 2012 and 2011, we recorded an insignificant amount of interest and penalties as a component of income tax expense on the accompanying statements of operations. Estimates of our uncertain tax positions are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, we will record additional income tax provision or income tax benefit in the period in which such resolution occurs.

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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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