Dish Network 2013 Annual Report Download - page 151

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-41
A reconciliation of the beginning and ending amount of unrecognized tax benefits included in “Long-term deferred
revenue, distribution and carriage payments and other long-term liabilities” on our Consolidated Balance Sheets was
as follows:
Unrecogni zed tax b enefit 2013 2 01 2 201 1
Balance as of beginning of period..................................................................................... $ 328,951 $ 235,067 $ 193,320
Additions based on tax positions related to the current year.............................................. 12,736 110,435 12,721
Additions based on tax positions related to prior years..................................................... 66,307 - 34,762
Reductions based on tax positions related to prior years...................................................
(
104,796
)
(
5,477
)
(
1,169
)
Reductions based on tax positions related to settlements with taxing authorities..............
(
139,022
)
(
1,739
)
(
1,185
)
Reductions based on tax positions related to the lapse of the statute of limi tations .......... (12,823) (9,335) (3,382)
Balance as of end of period............................................................................................... 151,353$ 328,951$ 235,067$
For the Years Ended December 31,
(In thousands)
We have $149 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. In 2013, we reversed
$102 million of an uncertain tax position that was resolved during the third quarter 2013, reflected in the table
above.
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 years ended December 31,
2013, 2012 and 2011, we recorded $4 million, less than $1 million and $4 million in interest and penalty expense to
earnings, respectively. Accrued interest and penalties were $13 million and $17 million at December 31, 2013 and
2012, respectively. The above table excludes these amounts.
13. Stockholders’ Equity (Deficit)
Capital Stock and Additional Paid-In Capital
Our certificate of incorporation authorizes the following capital stock: (i) 1,600,000,000 shares of Class A common
stock, par value $0.01 per share; (ii) 800,000,000 shares of Class B common stock, par value $0.01 per share; (iii)
800,000,000 shares of Class C common stock, par value $0.01 per share; and (iv) 20,000,000 shares of preferred stock,
par value $0.01 per share. As of December 31, 2013 and 2012, there were no outstanding shares of Class C common
stock or preferred stock.
The Class A, Class B and Class C common stock are equivalent except for voting rights. Holders of Class A and Class
C common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per
share. Each share of Class B and Class C common stock is convertible, at the option of the holder, into one share of
Class A common stock. Our Class A common stock is publicly traded on the NASDAQ Global Select Market under
the symbol “DISH.” Upon a change in control of DISH Network, each holder of outstanding shares of Class C
common stock is entitled to 10 votes for each share of Class C common stock held. Our principal stockholder owns the
majority of all outstanding Class B common stock. Together with all other stockholders, he also owns outstanding
Class A common stock.
Common Stock Repurchase Program
Our Board of Directors previously authorized the repurchase of up to $1.0 billion of our Class A common stock.
On November 5, 2013, our Board of Directors extended this authorization such that we are currently authorized to
repurchase up to $1.0 billion of outstanding shares of our Class A common stock through and including December
31, 2014. As of December 31, 2013, we may repurchase up to $1.0 billion under this plan. During the years ended
December 31, 2013, 2012 and 2011, there were no repurchases of our Class A common stock.