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

12 Months Ended

Dec. 31, 2017

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,
	2017		2016		2015
	(In thousands)
Current (benefit) provision:
Federal	$	356,759	$	567,850	$	528,005
State		54,133		64,453		35,988
Foreign		3,736		10,253		(3,089)
Total current (benefit) provision		414,628		642,556		560,904
Deferred (benefit) provision:
Federal		(308,028)		(83,638)		(92,415)
State		11,954		(837)		7,050
Increase (decrease) in valuation allowance		(938)		(495)		(1,405)
Total deferred (benefit) provision		(297,012)		(84,970)		(86,770)
Total (benefit) provision	$	117,616	$	557,586	$	474,134

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

	For the Years Ended December 31,
	2017	2016	2015
	% of pre-tax income/(loss)
Statutory rate	35.0	35.0	35.0
State income taxes, net of federal benefit	4.2	2.9	2.5
Reversal of uncertain tax positions	(0.2)	(1.3)	(0.7)
Tax Reform Act (1)	(34.5)	—	—
Nondeductible/Nontaxable items (2)	11.5	—	—
Other, net	(2.0)	—	(0.6)
Total (benefit) provision for income taxes	14.0	36.6	36.2

(1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective for us in future periods from 35% to 21%.  Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million.    

(2) During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss).  Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017.  The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action.  See Note 11 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information.

Schedule of deferred tax assets and liabilities

	As of December 31,
	2017		2016
	(In thousands)
Deferred tax assets:
NOL, credit and other carryforwards	$	11,197	$	12,022
Accrued expenses		35,776		51,901
Stock-based compensation		14,875		17,659
Deferred revenue		15,236		19,064
Total deferred tax assets		77,084		100,646
Valuation allowance		(5,887)		(6,825)
Deferred tax asset after valuation allowance		71,197		93,821
Deferred tax liabilities:
Depreciation		(394,528)		(652,399)
FCC authorizations and other intangible amortization		(123,963)		(200,285)
Bases difference in partnerships and other investments		(32,199)		—
Other liabilities		(5,606)		(18,040)
Total deferred tax liabilities		(556,296)		(870,724)
Net deferred tax asset (liability)	$	(485,099)	$	(776,903)

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	2017		2016		2015
	(In thousands)
Balance as of beginning of period	$	201,693	$	203,053	$	208,328
Additions based on tax positions related to the current year		684		39,752		12,502
Additions based on tax positions related to prior years		4,593		395		14,593
Reductions based on tax positions related to prior years		(1,061)		(34,761)		(24,905)
Reductions based on tax positions related to settlements with taxing authorities		(1,634)		(3,628)		(2,648)
Reductions based on tax positions related to the lapse of the statute of limitations		(3,113)		(3,118)		(4,817)
Balance as of end of period	$	201,162	$	201,693	$	203,053