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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | NOTE 9 – INCOME TAXES Significant components of the provision for income tax benefit (expense) are as follows:
(In thousands) |  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current - Federal |  | $ | 18,608 |  |  | $ | (4,534) |  |  | $ | 104,539 |
Current - foreign |  |  | (51,293) |  |  |  | (41,388) |  |  |  | (15,301) |
Current - state |  |  | 14,719 |  |  |  | (5,278) |  |  |  | (13,109) |
Total current benefit (expense) |  |  | (17,966) |  |  |  | (51,200) |  |  |  | 76,129 |
Deferred - Federal |  |  | 126,078 |  |  |  | 211,137 |  |  |  | 366,024 |
Deferred - foreign |  |  | 13,708 |  |  |  | (3,859) |  |  |  | 30,399 |
Deferred - state |  |  | 4,158 |  |  |  | 3,902 |  |  |  | 20,768 |
Total deferred benefit (expense) |  |  | 143,944 |  |  |  | 211,180 |  |  |  | 417,191 |
Income tax benefit (expense) |  |  | 125,978 |  |  | $ | 159,980 |  |  | $ | 493,320 |
Current tax expense of $18.0 million was recorded for 2011 as compared to current tax expenses of $51.2 million for 2010 primarily due to the Company's settlement of U.S. Federal and state tax examinations during 2011. Pursuant to the settlements, the Company recorded a reduction to current income tax expense of approximately $51.1 million during 2011 to reflect the net current tax benefits of the settlements. Deferred tax benefits of $143.9 million for 2011, primarily relate to future benefits of net operating loss carryforwards, and were lower when compared with deferred tax benefits of $211.2 million for 2010. The decrease in deferred tax benefits in 2011 is primarily due to a decrease in Federal tax losses. Additional decreases are a result of the deferred tax impacts from the Company's settlement of U.S. Federal and state tax examinations during 2011 along with the write-off of deferred tax assets associated with the 2011 vesting of certain equity awards. For the year ended December 31, 2010, deferred tax benefits decreased $206.0 million as compared to 2009 primarily due to larger impairment charges recorded in 2009 related to tax deductible intangibles. This decrease was partially offset by increases in deferred tax expense in 2009 as a result of the deferral of certain discharge of indebtedness income, for income tax purposes, resulting from the reacquisition of business indebtedness, as provided by the American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009. In addition, in 2010 the Company recorded additional deferred tax expenses related to excess tax over book depreciation resulting from the accelerated tax depreciation provisions available under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that was signed into law on December 17, 2010. Significant components of the Company's deferred tax liabilities and assets as of December 31, 2011and 2010 are as follows:
(In thousands) |  | 2011 |  |  | 2010 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangibles and fixed assets |  | $ | 2,381,177 |  |  | $ | 2,202,702 |
Long-term debt |  |  | 465,201 |  |  |  | 523,846 |
Foreign |  |  | 43,305 |  |  |  | 55,102 |
Investments in nonconsolidated affiliates |  |  | 46,502 |  |  |  | 48,880 |
Other investments |  |  | 7,068 |  |  |  | 7,012 |
Other |  |  | 25,834 |  |  |  | 18,488 |
Total deferred tax liabilities |  |  | 2,969,087 |  |  |  | 2,856,030 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued expenses |  |  | 92,038 |  |  |  | 123,225 |
Unrealized gain in marketable securities |  |  | 6,833 |  |  |  | 22,229 |
Net operating losses |  |  | 917,078 |  |  |  | 658,352 |
Bad debt reserves |  |  | 10,767 |  |  |  | 12,244 |
Deferred Income |  |  | 590 |  |  |  | 700 |
Other |  |  | 33,931 |  |  |  | 32,241 |
Total gross deferred tax assets |  |  | 1,061,237 |  |  |  | 848,991 |
Less: Valuation allowance |  |  | 14,177 |  |  |  | 17,434 |
Total deferred tax assets |  |  | 1,047,060 |  |  |  | 831,557 |
Net deferred tax liabilities |  | $ | 1,922,027 |  |  | $ | 2,024,473 |
Included in the Company's net deferred tax liabilities are $ 16.6 million and $25.7 million of current net deferred tax assets for 2011 and 2010, respectively. The Company presents these assets in "Other current assets" on its consolidated balance sheets. The remaining $1.9 billion and $2.0 billion of net deferred tax liabilities for 2011 and 2010, respectively, are presented in "Deferred tax liabilities" on the consolidated balance sheets. At December 31, 2011, the Company had recorded net operating loss carryforwards (tax effected) for federal and state income tax purposes of $917.1 million, expiring in various amounts through 2031. The Company expects to realize the benefits of the majority of net operating losses based on its expectations as to future taxable income from deferred tax liabilities that reverse in the relevant carryforward period and therefore the Company has not recorded a valuation allowance against those losses. At December 31, 2011, net deferred tax liabilities include a deferred tax asset of $27.5 million relating to stock-based compensation expense under ASC 718-10, Compensation—Stock Compensation. Full realization of this deferred tax asset requires stock options to be exercised at a price equaling or exceeding the sum of the grant price plus the fair value of the option at the grant date and restricted stock to vest at a price equaling or exceeding the fair market value at the grant date. Accordingly, there can be no assurance that the stock price of the Company's common stock will rise to levels sufficient to realize the entire deferred tax benefit currently reflected in its balance sheet. The deferred tax liability related to intangibles and fixed assets primarily relates to the difference in book and tax basis of acquired FCC licenses, permits and tax deductible goodwill created from the Company's various stock acquisitions. In accordance with ASC 350-10, Intangibles—Goodwill and Other, the Company does not amortize FCC licenses and permits. As a result, this deferred tax liability will not reverse over time unless the Company recognizes future impairment charges related to its FCC licenses, permits and tax deductible goodwill or sells its FCC licenses or permits. As the Company continues to amortize its tax basis in its FCC licenses, permits and tax deductible goodwill, the deferred tax liability will increase over time. The reconciliation of income tax computed at the U.S. Federal statutory tax rates to income tax benefit (expense) is:
|  | Years Ended December 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
|  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Income tax benefit (expense) at statutory rates |  | $ | 137,903 |  |  |  | 35% |  |  | $ | 217,991 |  |  |  | 35% |  |  | $ | 1,589,825 |  |  |  | 35% |
State income taxes, net of Federal tax benefit |  |  | 18,877 |  |  |  | 5% |  |  |  | (1,376) |  |  |  | 0% |  |  |  | 7,660 |  |  |  | 0% |
Foreign taxes |  |  | (4,683) |  |  |  | (1%) |  |  |  | (30,967) |  |  |  | (5%) |  |  |  | (92,648) |  |  |  | (2%) |
Nondeductible items |  |  | (3,154) |  |  |  | (1%) |  |  |  | (3,165) |  |  |  | (0%) |  |  |  | (3,317) |  |  |  | (0%) |
Changes in valuation allowance and other estimates |  |  | (15,816) |  |  |  | (4%) |  |  |  | (16,263) |  |  |  | (3%) |  |  |  | 54,579 |  |  |  | 1% |
Impairment charge |  |  | — |  |  |  | 0% |  |  |  | — |  |  |  | 0% |  |  |  | (1,050,535) |  |  |  | (23%) |
Other, net |  |  | (7,149) |  |  |  | (2%) |  |  |  | (6,240) |  |  |  | (1%) |  |  |  | (12,244) |  |  |  | (0%) |
Income tax benefit (expense) |  | $ | 125,978 |  |  |  | 32% |  |  | $ | 159,980 |  |  |  | 26% |  |  | $ | 493,320 |  |  |  | 11% |
A tax benefit was recorded for the year ended December 31, 2011 of 32%. The effective tax rate for 2011 was impacted by the Company's settlement of U.S. Federal and state tax examinations during the year. Pursuant to the settlements, the Company recorded a reduction to income tax expense of approximately $16.3 million to reflect the net tax benefits of the settlements. This benefit was partially offset by additional tax recorded during 2011 related to the write-off of deferred tax assets associated with the vesting of certain equity awards and the inability to benefit from certain tax loss carryforwards in foreign jurisdictions. Foreign income before income taxes was approximately $94.0 million for 2011. A tax benefit was recorded for the year ended December 31, 2010 of 26%. The effective tax rate for 2010 was impacted by the Company's inability to benefit from tax losses in certain foreign jurisdictions due to the uncertainty of the ability to utilize those losses in future years. In addition, the Company recorded a valuation allowance of $13.6 million against deferred tax assets in foreign jurisdictions due to the uncertainty of the ability to realize those assets in future periods. Foreign income before income taxes was approximately $40.8 million for 2010. A tax benefit was recorded for the year ended December 31, 2009 of 11%. The effective tax rate for 2009 was primarily impacted by the goodwill impairment charges which are not deductible for tax purposes (see Note 2). In addition, the Company was unable to benefit tax losses in certain foreign jurisdictions due to the uncertainty of the ability to utilize those losses in future years. These impacts were partially offset by the reversal of valuation allowances on certain net operating losses as a result of the Company's ability to utilize those losses through either carrybacks to prior years or based on our expectations as to future taxable income from deferred tax liabilities that reverse in the relevant carryforward period for those net operating losses that cannot be carried back. The Company continues to record interest and penalties related to unrecognized tax benefits in current income tax expense. The total amount of interest accrued at December 31, 2011 and 2010 was $61.0 million and $87.5 million, respectively. The total amount of unrecognized tax benefits and accrued interest and penalties at December 31, 2011 and 2010 was $236.8 million and $312.9 million, respectively, of which $212.7 million and $269.3 million is included in "Other long-term liabilities", and $4.5 million and $35.3 million is included in "Accrued Expenses" on the Company's consolidated balance sheets, respectively. In addition, $19.6 million of unrecognized tax benefits are recorded net with the Company's deferred tax assets for its net operating losses as opposed to being recorded in "Other long-term liabilities" at December 31, 2011. The total amount of unrecognized tax benefits at December 31, 2011 and 2010 that, if recognized, would impact the effective income tax rate is $146.0 million and $204.6 million, respectively.
(In thousands) |  | Years Ended December 31, |
Unrecognized Tax Benefits |  | 2011 |  |  | 2010 |
Balance at beginning of period |  | $ | 225,469 |  |  | $ | 237,517 |
Increases for tax position taken in the current year |  |  | 5,373 |  |  |  | 5,222 |
Increases for tax positions taken in previous years |  |  | 12,115 |  |  |  | 22,990 |
Decreases for tax position taken in previous years |  |  | (37,677) |  |  |  | (20,705) |
Decreases due to settlements with tax authorities |  |  | (29,443) |  |  |  | (14,462) |
Decreases due to lapse of statute of limitations |  |  | (55) |  |  |  | (5,093) |
Balance at end of period |  | $ | 175,782 |  |  | $ | 225,469 |
The Company and its subsidiaries file income tax returns in the United States Federal jurisdiction and various state and foreign jurisdictions. During 2011, the Company reached a settlement with the Internal Revenue Service ("IRS") related to the examination of the tax years 2003 and 2004. As a result of the settlement the Company paid approximately $22.4 million, inclusive of interest to the IRS and reversed the excess liabilities related to the settled tax years. During 2010, the Company reached a settlement with the IRS related to the examination of the tax years 2005 and 2006. As a result of the settlement the Company paid approximately $14.3 million, inclusive of interest, to the IRS and reversed the excess liabilities related to the settled tax years. The IRS is currently auditing the Company's 2007 and 2008 pre and post merger periods. In addition, the Company effectively settled several state and foreign tax examinations during 2010 and 2011 that resulted in a reduction to our net tax liabilities to reflect the tax benefits of the settlements. Substantially all material state, local, and foreign income tax matters have been concluded for years through 2003. -

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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 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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 Reference 6: 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 7: 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 8: 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=6881521&loc=d3e23780-122690 + Details
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