Dish Network 2010 Annual Report Download - page 119

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-34
The temporary differences, which give rise to deferred tax assets and liabilities as of December 31, 2010
and 2009, are as follows:
2010 2009
Deferred tax assets:
NOL, credit and other carryforwards.......................................... 14,595$ 16,684$
Unrealized losses on investments................................................ 49,555 71,781
Accrued expenses........................................................................ 256,033 175,428
Stock compensation..................................................................... 17,730 9,152
Deferred revenue......................................................................... 56,324 43,328
State taxes net of federal effect................................................... 29,599 19,976
Total deferred tax assets.............................................................. 423,836 336,349
Valuation allowance.................................................................... (73,126) (97,128)
Deferred tax asset after valuation allowance............................... 350,710 239,221
Deferred tax liabilities:
Depreciation and amortization.................................................... (701,497) (412,288)
Total deferred tax liabilities........................................................ (701,497) (412,288)
Net deferred tax asset (liability).................................................. (350,787)$ (173,067)$
Current portion of net deferred tax asset (liability)..................... 216,899$ 139,708$
Noncurrent portion of net deferred tax asset (liability)............... (567,686) (312,775)
Total net deferred tax asset (liability).......................................... (350,787)$ (173,067)$
As of December 31,
(In thousands)
Accounting for Uncertainty in Income Taxes
In addition to filing federal income tax returns, we and one or more of our subsidiaries file income tax
returns in all states that impose an income tax and a small number of foreign jurisdictions where we have
immaterial operations. We are subject to U.S. federal, state and local income tax examinations by tax
authorities for the years beginning in 1996 due to the carryover of previously incurred net operating losses.
As of December 31, 2010, no taxing authority has proposed any significant adjustments to our tax
positions. We have no significant current tax examinations in process.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in
thousands):
Unrecognized tax benefit 2010 2009 2008
Balance as of beginning of period..................................................................................... $ 224,029 $ 226,528 $ 17,593
Additions based on tax positions related to the current year.............................................. 7,382 7,952 37,583
Additions based on tax positions related to prior years..................................................... 11,800 3,665 208,137
Reductions based on tax positions related to prior years................................................... (45,197) (6,042) (36,785)
Reductions based on tax positions related to settlements with taxing authorities.............. (493) (5,899) -
Reductions based on tax positions related to the lapse of the statute of limitations .......... (4,201) (2,175) -
Balance as of end of period............................................................................................... 193,320$ 224,029$ 226,528$
For the Years Ended December 31,
(In thousands)
We have $171 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax
rate. We do not expect any portion of this amount to be paid or settled within the next twelve months.