Cablevision 2014 Annual Report Download - page 138

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except share and per share amounts)
F-49
December 31,
2014 2013
Deferred Tax Asset (Liability)
Current
Compensation and benefit plans ...................................................................................................... $ 74,220 $ 44,629
Allowance for doubtful accounts ..................................................................................................... 4,557 5,502
Other liabilities................................................................................................................................. 4,909 13,389
Deferred tax asset ........................................................................................................................ 83,686 63,520
Valuation allowance......................................................................................................................... (1,891)(2,426)
Net deferred tax asset, current..................................................................................................... 81,795 61,094
Investments....................................................................................................................................... (159,475)(97,565)
Prepaid expenses .............................................................................................................................. (27,605)(24,111)
Deferred tax liability, current ...................................................................................................... (187,080)(121,676)
Net deferred tax liability, current................................................................................................. (105,285)(60,582)
Noncurrent
Tax credit carry forwards................................................................................................................. 11,702 20,137
Compensation and benefit plans ...................................................................................................... 99,076 106,595
Newsday Holdings and other partnership investments .................................................................... 123,243 132,384
Investments....................................................................................................................................... 22,294 —
Other................................................................................................................................................. 7,345 4,896
Deferred tax asset ........................................................................................................................ 263,660 264,012
Valuation allowance......................................................................................................................... (5,454)(10,084)
Net deferred tax asset, noncurrent............................................................................................... 258,206 253,928
Fixed assets and intangibles............................................................................................................. (884,120)(840,375)
Investments....................................................................................................................................... — (29,563)
Other................................................................................................................................................. (453)(1,827)
Deferred tax liability, noncurrent ................................................................................................ (884,573)(871,765)
Net deferred tax liability, noncurrent........................................................................................... (626,367)(617,837)
Total net deferred tax liability.......................................................................................................... $ (731,652) $ (678,419)
CSC Holdings uses the 'with-and-without' approach to determine whether an excess tax benefit has been realized with regard to
'windfall' deductions on share-based payment awards. Upon realization, the excess tax benefits are recorded as an increase to
member's equity. On a stand-alone basis, CSC Holdings realized federal and state excess tax benefit of $4,978, $46,164 and
$61,434 during the years ended December 31, 2014, 2013 and 2012, respectively. Such excess tax benefit resulted in an increase
to member's equity.
The Company
Deferred tax assets have resulted primarily from the Company's future deductible temporary differences and NOLs. In assessing
the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the
deferred tax asset will not be realized. The Company's ability to realize its deferred tax assets depends upon the generation of
sufficient future taxable income and tax planning strategies to allow for the utilization of its NOLs and deductible temporary
differences. If such estimates and related assumptions change in the future, the Company may be required to record additional
valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company's consolidated
statements of income. Management evaluates the realizability of the deferred tax assets and the need for additional valuation
allowances quarterly. At this time, based on current facts and circumstances, management believes that it is more likely than not
that the Company will realize benefit for its gross deferred tax assets, except those deferred tax assets against which a valuation
allowance has been recorded which relate to certain state NOLs.