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INCOME TAXES (Block)
3 Months Ended
Mar. 31, 2014
Income Tax Disclosure Abstract  
Income Tax Disclosure Text Block

7.       INCOME TAXES

Tax Rate For The Three Months Ended March 31, 2014

 

The effective income tax rate was 34.3% for the three months ended March 31, 2014, which was less than expected primarily due to a discrete tax benefit from legislatively reduced income tax rates in certain states. This rate decrease was offset by an adjustment for expenses that are not deductible for tax purposes and an increase in net deferred tax liabilities associated with non-amortizable assets such as broadcasting licenses and goodwill.

 

Tax Rate For The Three Months Ended March 31, 2013

 

The effective income tax rate was 176.3% for the three months ended March 31, 2013, which was impacted by discrete items arising during the period, primarily related to a tax benefit shortfall associated with share-based awards. The impact of discrete items to the income tax rate is typically substantially greater in the first quarter of the year as income before taxes is the lowest as compared to subsequent quarters.

Net Deferred Tax Assets And Liabilities

 

       As of March 31, 2014 and December 31, 2013, net deferred tax liabilities were $42.1 million and $41.4 million, respectively. The income tax accounting process to determine the deferred tax liabilities involves estimating all temporary differences between the tax and financial reporting bases of the Company's assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the period in which the differences are expected to affect taxable income. The Company estimated the current exposure by assessing the temporary differences and computing the provision for income taxes by applying the estimated effective tax rate to income.