Income Taxes and Accounting for Uncertainty in Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes and Accounting for Uncertainty in Income Taxes

Schedule of components of the (provision for) benefit from income taxes

	For the Years Ended December 31,
	2016		2015		2014
	(In thousands)
Current (benefit) provision:
Federal	$	541,217	$	525,224	$	342,417
State		62,805		34,754		(26,163)
Foreign		9,600		(3,517)		6,990
Total current (benefit) provision		613,622		556,461		323,244
Deferred (benefit) provision:
Federal		(83,714)		(117,608)		78,420
State		(636)		10,192		14,011
Increase (decrease) in valuation allowance		(495)		(1,405)		(4,844)
Total deferred (benefit) provision		(84,845)		(108,821)		87,587
Total (benefit) provision	$	528,777	$	447,640	$	410,831

Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes

	For the Years Ended December 31,
	2016	2015	2014
	% of pre-tax income/(loss)
Statutory rate	35.0	35.0	35.0
State income taxes, net of federal benefit	3.0	3.3	2.0
Reversal of uncertain tax positions	(1.3)	(0.9)	(3.5)
Other, net	0.7	(0.4)	-
Total (benefit) provision for income taxes	37.4	37.0	33.5

Schedule of deferred tax assets and liabilities

	As of December 31,
	2016		2015
	(In thousands)
Deferred tax assets:
NOL, credit and other carryforwards	$	7,680	$	12,193
Accrued expenses		50,618		36,774
Stock-based compensation		16,561		15,708
Deferred revenue		19,064		27,840
Total deferred tax assets		93,923		92,515
Valuation allowance		(3,315)		(3,810)
Deferred tax asset after valuation allowance		90,608		88,705
Deferred tax liabilities:
Depreciation		(712,595)		(806,105)
FCC authorizations and other intangible amortization		(218,279)		(217,827)
Unrealized (gains) losses on available for sale and other investments		—		(7,240)
Bases difference in partnerships and cost method investments (1)		(122,620)		(118,977)
Other liabilities		(23,973)		(27,572)
Total deferred tax liabilities		(1,077,467)		(1,177,721)
Net deferred tax asset (liability)	$	(986,859)	$	(1,089,016)

(1) Included in this line item are deferred taxes related to our cost method investments, including our cost method investments in the Tracking Stock.    On February 28, 2017, we completed the Share Exchange with EchoStar pursuant to which, among other things, we transferred the EchoStar Tracking Stock to EchoStar and the HSSC Tracking Stock to HSSC.  As a result, we no longer hold EchoStar Tracking Stock or HSSC Tracking Stock.

Schedule of 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

	For the Years Ended December 31,
Unrecognized tax benefit	2016		2015		2014
	(In thousands)
Balance as of beginning of period	$	202,400	$	207,675	$	145,884
Additions based on tax positions related to the current year		39,752		12,502		69,643
Additions based on tax positions related to prior years		395		14,593		58,963
Reductions based on tax positions related to prior years		(34,761)		(24,905)		(16,379)
Reductions based on tax positions related to settlements with taxing authorities		(3,628)		(2,648)		(42,023)
Reductions based on tax positions related to the lapse of the statute of limitations		(3,118)		(4,817)		(8,413)
Balance as of end of period	$	201,040	$	202,400	$	207,675