US Cellular 2012 Annual Report Download - page 59

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United States Cellular Corporation
Notes to the Consolidated Financial Statements (Continued)
NOTE 4 INCOME TAXES (Continued)
U.S. Cellular’s noncurrent deferred income tax assets and liabilities at December 31, 2012 and 2011 and
the temporary differences that gave rise to them were as follows:
December 31, 2012 2011
(Dollars in thousands)
Noncurrent deferred tax assets
Net operating loss (‘‘NOL’’) carryforwards ............... $ 63,240 $ 48,565
Stock-based compensation .......................... 22,411 19,079
Compensation and benefits—other .................... 13,673 2,985
Deferred rent .................................... 15,822 12,656
Other ......................................... 25,432 20,554
140,578 103,839
Less valuation allowance ........................... (40,208) (29,262)
Total noncurrent deferred tax assets ................... 100,370 74,577
Noncurrent deferred tax liabilities
Property, plant and equipment ....................... 527,547 482,433
Licenses/intangibles ............................... 294,738 267,344
Partnership investments ............................ 124,221 120,941
Other ......................................... 3,682 3,049
Total noncurrent deferred tax liabilities .................. 950,188 873,767
Net noncurrent deferred income tax liability ............... $849,818 $799,190
At December 31, 2012, U.S. Cellular and certain subsidiaries had $1,152.0 million of state NOL
carryforwards (generating a $54.4 million deferred tax asset) available to offset future taxable income.
The state NOL carryforwards expire between 2013 and 2032. Certain subsidiaries had federal NOL
carryforwards (generating a $8.8 million deferred tax asset) available to offset their future taxable income.
The federal NOL carryforwards expire between 2013 and 2032. A valuation allowance was established for
certain state NOL carryforwards and federal NOL carryforwards since it is more likely than not that a
portion of such carryforwards will expire before they can be utilized.
A summary of U.S. Cellular’s deferred tax asset valuation allowance is as follows:
2012 2011 2010
(Dollars in thousands)
Balance at January 1, ...................................... $30,261 $29,891 $19,234
Charged to income tax expense ............................. 3,033 (1,450) (832)
Charged to other accounts ................................. 8,001 1,820 11,489
Balance at December 31, ................................... $41,295 $30,261 $29,891
As of December 31, 2012, the valuation allowance reduced current deferred tax assets by $1.1 million
and noncurrent deferred tax assets by $40.2 million.
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