Dish Network 2011 Annual Report Download - page 132

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-38
The temporary differences, which give rise to deferred tax assets and liabilities as of December 31, 2011 and 2010, are
as follows:
2011 2010
Deferred tax assets:
NOL, credit and other carryforwards........................................... 23,017$ 14,595$
Unrealized losses on investments................................................ 48,452 49,555
Accrued expenses........................................................................ 95,903 256,033
Stock-based compensation........................................................... 23,365 17,730
Deferred revenue......................................................................... 45,556 56,324
State taxes net of federal effect.................................................... 4,917 29,599
Total deferred tax assets.............................................................. 241,210 423,836
Valuation allowance.................................................................... (97,501) (73,126)
Deferred tax asset after valuation allowance............................... 143,709 350,710
Deferred tax liabilities:
Depreciation and amortization..................................................... (1,066,476) (701,497)
Other long-term liabilities............................................................ (26,943) -
Total deferred tax liabilities......................................................... (1,093,419) (701,497)
Net deferred tax asset (liability).................................................. (949,710)$ (350,787)$
Current portion of net deferred tax asset .................................... 73,014$ 216,899$
Current portion of net deferred tax liability................................. (48,310) -
Noncurrent portion of net deferred tax asset (liability)................ (974,414) (567,686)
Total net deferred tax asset (liability).......................................... (949,710)$ (350,787)$
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 2002
due to the carryover of previously incurred net operating losses. As of December 31, 2011, we are currently under a
federal income tax examination for fiscal year 2008.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Unrecognized tax benefit 2011 2010 2009
Balance as of beginning of period...................................................................................... $ 193,320 $ 224,029 $ 226,528
Additions based on tax positions related to the current year.............................................. 44,357 7,382 7,952
Additions based on tax positions related to prior years...................................................... 34,762 11,800 3,665
Reductions based on tax positions related to prior years................................................... (1,169) (45,197) (6,042)
Reductions based on tax positions related to settlements with taxing authorities.............. (1,185) (493) (5,899)
Reductions based on tax positions related to the lapse of the statute of limitations .......... (3,382) (4,201) (2,175)
Balance as of end of period................................................................................................ 266,703$ 193,320$ 224,029$
For the Years Ended December 31,
(In thousands)
We have $208 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.