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INCOME TAXES (Block) | 9 Months Ended
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Sep. 30, 2011
Income Tax Disclosure Abstract |
Income Tax Disclosure Text Block | 13. INCOME TAXES Effective Tax Rate - Overview The Company's effective income tax rate, or a tax benefit, may be impacted by: (1) changes in the level of income in any of the Company's taxing jurisdictions; (2) changes in the statutes and rules applicable to taxable income in the jurisdictions in which the Company operates; (3) changes in the expected outcome of income tax audits; (4) changes in the estimate of expenses that are not deductible for tax purposes; (5) income taxes in certain states where the states' current taxable income is dependent on factors other than the Company's consolidated net income; (6) the effect of recording changes in the Company's liabilities for uncertain tax positions; and (7) adding facilities in states that on average have different income tax rates from states in which we currently operate and the resulting effect on previously reported temporary differences between the tax and financial reporting bases of our assets and liabilities. An impairment loss will result in an income tax benefit during the period incurred as the amortization of broadcasting licenses and goodwill is deductible for income tax purposes. Tax Rate s For The Nine Months And Three Months Ended September 30, 2011 The effective income tax rate w as (56.3%) for the nine months ended September 30, 2011, which reflect s: (1) a reversal of the full valuation allowance against its deferred tax assets for the reasons as described below under Valuation Allowance For Deferred Tax Assets; and (2) certain discrete items of tax. The income tax benefit from the reversal of the full valuation allowance was offs et by a prior period correction in the current period that increased deferred income tax expense by $6.0 million. See Note 13 below for further discussion. The effective income tax rate was 51.6% for the three months ended September 30, 2011, which includes $1.5 million related primarily to the overstatement of the Company's deferred tax assets following the release of its valuation allowance in the second quarter of 2011. Tax Rate s For The Nine Months And Three Months Ended September 30, 2010 The effective income tax rate s w ere 34.9% and 40.4% for the nine months and three months ended September 30, 2010, respectively. T he effective income tax rate s reflect: (1) an increase in net deferred tax liabilities associated with non-amortizable assets such as broadcasting licenses and goodwill; (2) an increase in the deferred tax asset valuation allowance for the reasons as described below under Valuation Allowance For Deferred Tax Assets; and (3) certain discrete items of tax. Deferred Tax Assets And Liabilities As of September 30, 2011, there were net deferred tax assets of $0.3 million. As of December 31, 2010, there were net deferred tax liabilities of $23.1 million. The i ncome tax accounting process to determine the deferred tax liabilities involves estimating all temporary differences between the tax and financial reporting bases of the Company's assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the period in which the differences are expected to affect taxable income. The Company estimated the current exposure by assessing the temporary differences and computing the provision for income taxes by applying the estimated effective tax rate to income. Valuation Allowance For Deferred Tax Assets The Company was impacted by the economic downturn which resulted in impairments to its broadcast licenses and goodwill in 2007 and 2008. Due to th ese impairment loss es and their impact on cumulative three-year income, the Company established a deferred tax asset valuation allowance in 2008. During the second quarter of 2011, management determined that on a more likely than not realization basis, this full valuation allowance was no longer required. Contributing to this assessment were sufficient positive indicators such as, but not limited to, the then present economic conditions (as compared to the economic conditions when the valuation allowance was established), recent profitability, management's expectation of future profitability, including available future taxable income under the current tax law to realize all of the tax benefits for deduc t ible temporary differences and carryforwards. In addition, the Company does not have a history of its net operating loss carryforwards expiring unused. The recoverability of the Company's net deferred tax assets ha s been assessed utilizing projections based on the Company's current operations. The projections show a significant decrease in tax amortization in the earl y years of the carryforward period as a significant portion of the Company's intangible assets will be fully amortized during that time. Accordingly, the recoverability of the net deferred tax asset s is not dependent on material improvements to operations, material asset sales or other non-routine transactions. Based on this assessment, management determined that it is more likely than not that such assets will be realized, which result s in a tax benefit of $42.1 million to the income statement due to the reversal of the full valuation allowance during 2011. The Company de creased its valuation allowance to $1.7 million as of September 30, 2011 from $43.8 million as of December 31, 2010. The Company has also considered future taxable income and ongoing prudent and feasible tax-planning strategies in assessing the need for the valuation allowance. On a quarterly basis, management assesses whether it remains more likely than not that the deferred tax assets will be realized. If the Company does not generate adequate taxable earnings, some or all of our deferred tax assets may not be realized. Additionally, changes to the federal and state income tax laws could also impact the Company's ability to use its net operating loss carryforward. In the event the Company determines at a future time that it would not realize its net deferred tax assets, the Company will increase its deferred tax asset valuation allowance and increase income tax expense in the period when the Company makes such determination. Liabilities For Uncertain Tax Positions The Company's liabilities for uncertain tax positions, which amounts were recorded as long-term liabilities in the balance sheets, are reflected in the following table as of the periods indicated:
|  |  | September 30, |  | December 31,
|  |  | 2011 |  | 2010
|  |  | (amounts in thousands)
Liabilities for uncertain tax positions |  |  |  |  |  |
| Tax |  | $ | 530 |  | $ | 1,674
| Interest and penalties |  |  | 610 |  |  | 1,147
| Total |  | $ | 1,140 |  | $ | 2,821
The decrease in liabilities for uncertain tax positions for the nine months ended September 30, 2011 primarily reflects the expiration of statutes of limitation for certain tax jurisdictions. The Company reviews its estimates on a quarterly basis and any change in its liabilities for uncertain tax positions will result in an adjustment to its income tax expense in the statement of operations in each period measured. The following table s present, for the periods indicated, the expense (income) for uncertain tax positions, which amounts were reflected in the consolidated statements of operations as an increase (decrease) to income tax expense:
|  | Nine Months Ended
|  | September 30,
|  | 2011 |  | 2010
|  | (amounts in thousands)
Tax expense (income) |  | $ | (1,064) |  | $ | (108)
Interest and penalties (income) |  |  | (617) |  |  | 161
Income taxes (benefit) from uncertain tax positions |  | $ | (1,681) |  | $ | 53
|  | Three Months Ended
|  | September 30,
|  | 2011 |  | 2010
Tax expense (income) |  | $ | - |  | $ | 489
Interest and penalties (income) |  |  | 15 |  |  | 461
Income taxes (benefit) from uncertain tax positions |  | $ | 15 |  | $ | 950
Federal And State Income Tax Audits The Company is subject to federal and state income tax audits from time to time that could result in proposed assessments. The Company cannot predict with certainty how these audits will be resolved and whether the Company will be required to make additional tax payments, which may include penalties and interest. During the fourth quarter of 2010, t he Company concluded an audit by the Internal Revenue Service with no proposed adjustment for the tax years of 2004 through 200 8. For most states where the Company conducts business, the Company is subject to examination for the preceding three to six years. In certain states, the period could be longer. Management believes that the Company has made sufficient tax provisions for tax periods that are within the statutory period of limitations not previously audited and that are potentially open for examination by the taxing authorities. Potential liabilities associated with these years will be resolved when an event occurs to warrant closure, primarily through the completion of audits by the taxing jurisdictions, or if the statute of limitations expires. To the extent audits or other events result in a material adjustment to the accrued estimates, the effect would be recognized during the period of the event. There can be no assurance, however, that the ultimate outcome of audits will not have a material adverse impact on the Company's financial position, results of operations or cash flows. Income Tax Payments And Refunds The following table provides the amount of income tax payments and income tax refunds for the period s indicated:
|  |  | Nine Months Ended
|  |  | September 30,
|  |  | 2011 |  | 2010
|  |  | (amounts in thousands)
State income tax payments |  | $ | 82 |  | $ | 1
Federal and state income tax refunds |  | $ | 452 |  | $ | -
Prior Period Correction Included in the nine months ended September 30, 2011 is a prior period c orrection for the year ended December 31, 2008 of $6.0 million that was made to record an income tax benefit to other comprehensive income (loss) and to increase deferred income tax expense by the same amount. The prior period financial statements were not restated as t his correction was considered to be immaterial to our previously reported results of operations and financial position and had no i m pact on previously reported cash flows from operating, financing or investing activities. In addition, during the three month period ended September 30, 2011, the Company noted an error related to deferred tax expense for the three month period ended June 30, 2011. As of June 30, 2011, the Company omitted to include the federal benefit for state taxes in calculating its deferred tax assets which had the effect of understating deferred tax expense by $1.5 million. The Company has corrected this error during the three month period ended September 30, 2011 by recognizing an additional $1.5 million in deferred tax expense in the period. There is no impact on the tax rate for the nine-month period ended September 30, 2011. The Company recorded the correction of this error to the financial statements for the three months ended September 30, 2011 as this error was not material to the financial statements for either the three months ended June 30, 2011 or the three months ended September 30, 2011.

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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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