Dish Network 2009 Annual Report Download - page 122

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-32
The temporary differences, which give rise to deferred tax assets and liabilities as of December 31, 2009 and 2008,
are as follows:
2009 2008
Deferred tax assets:
NOL, credit and other carryforwards........................................... 29,478$ 7,682$
Unrealized losses on investments................................................ 58,915 112,141
Accrued expenses........................................................................ 169,773 48,912
Stock compensation..................................................................... 9,152 7,869
Deferred revenue......................................................................... 43,328 62,110
State taxes net of federal effect.................................................... 7,462 9,981
Other............................................................................................ 12,588 11,504
Total deferred tax assets.............................................................. 330,696 260,199
Valuation allowance.................................................................... (97,128) (124,098)
Deferred tax asset after valuation allowance............................... 233,568 136,101
Deferred tax liabilities:
Depreciation and amortization..................................................... (406,635) (285,321)
Total deferred tax liabilities......................................................... (406,635) (285,321)
Net deferred tax asset (liability).................................................. (173,067)$ (149,220)$
Current portion of net deferred tax asset (liability)...................... 139,708$ 86,331$
Noncurrent portion of net deferred tax asset (liability)................ (312,775) (235,551)
Total net deferred tax asset (liability).......................................... (173,067)$ (149,220)$
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
1996 due to the carryover of previously incurred net operating losses. As of December 31, 2009, no taxing
authority has proposed any significant adjustments to our tax positions. We have no significant current tax
examinations in process.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Balance as of January 1, 2009.............................................................................................. $ 233,360
Additions based on tax positions related to the current year................................................ 7,952
Additions based on tax positions related to prior years........................................................ 12,838
Reductions based on tax positions related to prior years...................................................... (6,042)
Reductions based on tax positions related to settlements with taxing authorities................. (5,899)
Reductions based on tax positions related to the lapse of the statute of limitations ............. (2,175)
Balance as of December 31, 2009........................................................................................ 240,034$
We have $170 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.
Accrued interest and penalties on uncertain tax positions are recorded as a component of “Other, net” on our
Consolidated Statements of Operations and Comprehensive Income (Loss). During the year ended December 31,
2009, we recorded $9 million in interest and penalty expense to earnings. Accrued interest and penalties was $16
million at December 31, 2009.