Dish Network 1999 Annual Report Download - page 68

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–20
The temporary differences, which give rise to deferred tax assets and liabilities as of December 31, 1998 and 1999, are as
follows (in thousands):
December 31,
1998 1999
Current deferred tax assets:
Accrued royalties................................................................................... $ 15,971 $ 30,018
Inventory reserves and cost methods....................................................... 1,759 1,380
Accrued expenses.................................................................................. 9,976 29,846
Allowance for doubtful accounts ............................................................ 1,945 5,636
Reserve for warranty costs ..................................................................... 101 78
Total current deferred tax assets................................................................. 29,752 66,958
Current deferred tax liabilities:
Subscriber acquisition costs and other..................................................... –68
Total current deferred tax liabilities............................................................ –68
Gross current deferred tax assets................................................................ 29,752 66,890
Valuation allowance.................................................................................. (22,429) (55,162)
Net current deferred tax assets ................................................................... 7,323 11,728
Noncurrent deferred tax assets:
General business and foreign tax credits.................................................. 2,072 2,504
Net operating loss carryforwards ............................................................ 147,097 551,561
Amortization of original issue discount on 1994 Notes and 1996 Notes..... 105,095 –
Other.................................................................................................... 13,000 9,553
Total noncurrent deferred tax assets ........................................................... 267,264 563,618
Noncurrent deferred tax liabilities:
Depreciation.......................................................................................... (24,013) (43,459)
Other.................................................................................................... (322) (425)
Total noncurrent deferred tax liabilities....................................................... (24,335) (43,884)
Gross deferred tax assets ........................................................................... 242,929 519,734
Valuation allowance.................................................................................. (183,117) (464,327)
Net noncurrent deferred tax assets.............................................................. 59,812 55,407
Net deferred tax assets............................................................................... $ 67,135 $ 67,135
The components of the (provision for) benefit from income taxes are as follows (in thousands):
Year Ended December 31,
1997 1998 1999
Current (provision) benefit:
Federal .................................................................... $ (373) $ 15 $ –
State... ..................................................................... (9) 18 (45)
Foreign .................................................................... (137) (77) (108)
(519) (44) (153)
Deferred (provision) benefit:
Federal .................................................................... 104,992 86,604 286,195
State........................................................................ 7,860 6,463 27,748
Increase in valuation allowance ................................. (112,479) (93,067) (313,943)
373 – –
Total (provision) benefit........................................ $ (146) $ (44) $ (153)