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

12 Months Ended

Dec. 31, 2018

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,
	2018		2017		2016
	(In thousands)
Current (benefit) provision:
Federal	$	273,632	$	356,759	$	567,850
State		64,534		54,133		64,453
Foreign		4,616		3,736		10,253
Total current (benefit) provision		342,782		414,628		642,556
Deferred (benefit) provision:
Federal		(25,934)		(308,028)		(83,638)
State		(123)		11,954		(837)
Increase (decrease) in valuation allowance		1,580		(938)		(495)
Total deferred (benefit) provision		(24,477)		(297,012)		(84,970)
Total (benefit) provision	$	318,305	$	117,616	$	557,586

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

	For the Years Ended December 31,
	2018	2017	2016
	% of pre-tax income/(loss)
Statutory rate	21.0	35.0	35.0
State income taxes, net of federal benefit	4.4	4.2	2.9
Tax Reform Act (1)	-	(34.5)	—
Nondeductible/Nontaxable items (2)	-	11.5	—
Other, net	(0.8)	(2.2)	(1.3)
Total (benefit) provision for income taxes	24.6	14.0	36.6

(1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 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 for further information.

Schedule of deferred tax assets and liabilities

	As of December 31,
	2018		2017
	(In thousands)
Deferred tax assets:
NOL, interest, credit and other carryforwards	$	10,915	$	11,197
Accrued and prepaid expenses		—		35,776
Stock-based compensation		21,198		14,875
Deferred revenue		18,361		15,236
Total deferred tax assets		50,474		77,084
Valuation allowance		(7,467)		(5,887)
Deferred tax asset after valuation allowance		43,007		71,197
Deferred tax liabilities:
Depreciation		(345,358)		(394,528)
Accrued and prepaid expenses		(15,537)		—
FCC authorizations and other intangible amortization		(131,452)		(123,963)
Bases difference in partnerships and other investments		(12,112)		(32,199)
Other liabilities		—		(5,606)
Total deferred tax liabilities		(504,459)		(556,296)
Net deferred tax asset (liability)	$	(461,452)	$	(485,099)

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	2018		2017		2016
	(In thousands)
Balance as of beginning of period	$	201,162	$	201,693	$	203,053
Additions based on tax positions related to the current year		10,550		684		39,752
Additions based on tax positions related to prior years		1,154		4,593		395
Reductions based on tax positions related to prior years		(4,479)		(1,061)		(34,761)
Reductions based on tax positions related to settlements with taxing authorities		(8,328)		(1,634)		(3,628)
Reductions based on tax positions related to the lapse of the statute of limitations		(5,923)		(3,113)		(3,118)
Balance as of end of period	$	194,136	$	201,162	$	201,693