US Cellular 2014 Annual Report Download - page 58

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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 4 INCOME TAXES (Continued)
Significant components of U.S. Cellular’s deferred income tax assets and liabilities at December 31, 2014
and 2013 were as follows:
December 31, 2014 2013
(Dollars in thousands)
Deferred tax assets
Current deferred tax assets .......................... $ 96,886 $102,088
Net operating loss (‘‘NOL’’) carryforwards ............... 72,878 61,294
Stock-based compensation .......................... 21,072 19,028
Compensation and benefits—other .................... 2,586 3,746
Deferred rent .................................... 18,513 19,462
Other ......................................... 26,116 24,604
Total deferred tax assets ............................ 238,051 230,222
Less valuation allowance ........................... (53,119) (43,375)
Net deferred tax assets ............................ 184,932 186,847
Deferred tax liabilities
Property, plant and equipment ....................... 520,723 503,491
Licenses/intangibles ............................... 275,456 282,764
Partnership investments ............................ 149,371 133,931
Other ......................................... 4,135 3,853
Total deferred tax liabilities .......................... 949,685 924,039
Net deferred income tax liability ........................ $764,753 $737,192
At December 31, 2014, U.S. Cellular and certain subsidiaries had $1,439.4 million of state NOL
carryforwards (generating a $59.4 million deferred tax asset) available to offset future taxable income.
The state NOL carryforwards expire between 2015 and 2034. Certain subsidiaries had federal NOL
carryforwards (generating a $13.5 million deferred tax asset) available to offset their future taxable
income. The federal NOL carryforwards expire between 2018 and 2034. 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:
2014 2013 2012
(Dollars in thousands)
Balance at January 1, ...................................... $43,375 $41,295 $30,261
Charged to income tax expense ............................. 9,744 (1,527) 3,033
Charged to other accounts ................................. — 3,607 8,001
Balance at December 31, ................................... $53,119 $43,375 $41,295
As of December 31, 2014, the valuation allowance reduced current deferred tax assets by $3.8 million
and noncurrent deferred tax assets by $49.2 million.
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