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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the three and nine months ended September 30, 2013, income tax expense attributable to continuing operations was $34,784 and $155,283, respectively, representing an effective tax rate of 37% and 38%, respectively. The effective tax rate differs from the federal statutory rate of 35% due primarily to state income tax expense of $1,083 and $7,792, for the three and nine months ended September 30, 2013, respectively, tax expense resulting from an increase in the valuation allowance with regard to certain foreign and local income tax credit carry forwards of $1,784 and $4,172 for the three and nine months ended September 30, 2013, respectively, and tax expense of $11,204 and $11,237 relating to uncertain tax positions, including accrued interest for the three and nine months ended September 30, 2013, respectively.
For the three and nine months ended September 30, 2012, income tax expense attributable to continuing operations was $20,121 and $70,989, respectively, representing an effective tax rate of 36% and 37%, respectively. The effective tax rate differs from the federal statutory rate of 35% due primarily to state and local income tax expense of $1,147 and $4,210, for the three and nine months ended September 30, 2012, respectively, and tax expense related to uncertain tax positions, including accrued interest of $1,544, for the nine months ended September 30, 2012, partially offset by a tax benefit resulting from a decrease in the valuation allowance with regard to certain local income tax credit carry forwards of $570 and $2,370, for the three and nine months ended September 30, 2012, respectively.
At September 30, 2013, the Company had foreign tax credit carry forwards of approximately $22,000, expiring on various dates from 2014 through 2023. For the nine months ended September 30, 2013, excess tax benefits of $4,920 relating to share-based compensation awards and $1,210 relating to amortization of tax deductible second component goodwill were realized as a reduction in tax liability (as determined on a 'with-and-without' approach).
Under the Company's Tax Disaffiliation Agreement with Cablevision, Cablevision is liable for all income taxes of the Company for periods prior to the Distribution except for New York City Unincorporated Business Tax. In June 2013, the Company settled a New York City Unincorporated Business tax audit for the years 2006 and 2007 for $447, including accrued interest. The City of New York is currently auditing the Company's Unincorporated Business Tax Return for 2008. The Internal Revenue Service is currently auditing the Company's U.S. Corporation Income Tax Return for 2011.