Cablevision 2011 Annual Report Download - page 188

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-64
the portion relating to remaining excess tax benefits not yet realized, obligations to Cablevision pursuant
to the tax allocation policy will increase significantly.
As of December 31, 2011, on a stand-alone basis CSC Holdings has $40,416 of alternative minimum tax
credit carry forwards, which do not expire.
The Company
Deferred tax assets have resulted primarily from the Company's future deductible temporary differences
and NOLs. In assessing the realizability of deferred tax assets, management considers whether it is more
likely than not that some portion or all of the deferred tax asset will not be realized. The Company's
ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income
and tax planning strategies to allow for the utilization of its NOLs and deductible temporary differences.
If such estimates and related assumptions change in the future, the Company may be required to record
additional valuation allowances against its deferred tax assets, resulting in additional income tax expense
in the Company's consolidated statement of income. Management evaluates the realizability of the
deferred tax assets and the need for additional valuation allowances quarterly. At this time, based on
current facts and circumstances, management believes that it is more likely than not that the Company
will realize benefit for its gross deferred tax assets, except those deferred tax assets against which a
valuation allowance has been recorded which relate to certain state NOLs.
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with
uncertain tax positions, excluding associated deferred tax benefits and accrued interest, is as follows:
Balance at December 31, 2010 ..............................................................................................................
.
$60,098
Increases related to prior year tax positions ........................................................................................
.
4,535
Decreases related to prior year tax positions ......................................................................................
.
(341)
Increases related to current year tax positions ....................................................................................
.
329
Settlements .........................................................................................................................................
.
-
Lapse of statute of limitations .............................................................................................................
.
-
Balance at December 31, 2011 ..............................................................................................................
.
$64,621
As of December 31, 2011, if all uncertain tax positions were sustained at the amounts reported or
expected to be reported in the Company's tax returns, the elimination of the Company's unrecognized tax
benefits, net of the deferred tax impact, would decrease income tax expense by $58,319.
Interest expense related to uncertain tax positions is included in income tax expense, consistent with the
Company's historical policy. After considering the associated deferred tax benefit, interest expense of
$1,179, $1,210 and $385 has been included in income tax expense attributable to continuing operations in
the consolidated statements of income for 2011, 2010 and 2009, respectively. At December 31, 2011,
accrued interest on uncertain tax positions of $306 and $3,015 was included in accrued liabilities and
other noncurrent liabilities, respectively, in the consolidated balance sheet.
Management does not believe that it is reasonably possible that the total amount of the gross liability for
uncertain tax positions existing as of December 31, 2011 will significantly increase or decrease within
twelve months of December 31, 2011.
With a few exceptions, the Company is no longer subject to state and local income tax audits by taxing
authorities for years prior to 2007. The most significant jurisdictions in which the Company is required to
file income tax returns include the states of New York, New Jersey and Connecticut and the city of New
York. The IRS is presently examining the Company's consolidated federal income tax returns for years