Dish Network 2013 Annual Report Download - page 150

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-40
The actual tax provisions for 2013, 2012 and 2011 reconcile to the amounts computed by applying the statutory Federal
tax rate to income before taxes as follows:
2013 2012 2011
Statutory rate............................................................................... (35.0) (35.0) (35.0)
State income taxes, net of Federal benefit................................... (1.3) (2.6) (1.6)
Reversal of uncertain tax position............................................... 9.0 - -
Other............................................................................................ 0.9 0.8
(
0.6
)
Decrease (increase) in valuation allowance................................. - 3.4 0.3
Total benefit (provision) for income taxes.................................. (26.4) (33.4) (36.9)
For the Years Ended December 31,
% of pre-tax (income)/loss
Our effective tax rate for the year ended December 31, 2013 was favorably impacted by the $102 million reversal of
an uncertain tax position that was resolved during the third quarter 2013.
The temporary differences, which give rise to deferred tax assets and liabilities as of December 31, 2013 and 2012,
were as follows:
2013 2012
Deferred tax assets:
NOL, credit and other carryforwards.......................................... 20,947$ 19,737$
Accrued expenses........................................................................ 53,700 68,496
Stock-based compensation.......................................................... 23,174 27,088
Deferred revenue......................................................................... 54,330 67,023
Total deferred tax assets.............................................................. 152,151 182,344
Valuation allowance.................................................................... (9,515) (6,903)
Deferred tax asset after valuation allowance............................... 142,636 175,441
Deferred tax liabilities:
Depreciation and amortization.................................................... (1,864,691) (1,711,663)
Unrealized gains on investments................................................. (58,435) (11,670)
Other liabilities............................................................................ (35,336) (32,976)
Total deferred tax liabilities........................................................ (1,958,462) (1,756,309)
Net deferred tax asset (liability).................................................. (1,815,826)$ (1,580,868)$
Current portion of net deferred tax asset .................................... 129,864$ 93,767$
Noncurrent portion of net deferred tax asset (liability)............... (1,945,690) (1,674,635)
Total net deferred tax asset (liability).......................................... (1,815,826)$ (1,580,868)$
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. We are currently under a federal income tax
examination for fiscal years 2008 through 2012.