INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Income Tax Expense (Benefit) Attributable to Continuing Operations

Income tax expense (benefit) attributable to Cablevision's continuing operations consists of the following components:

	Years Ended December 31,
	2011			2010			2009
Current expense (benefit):
Federal	$	(1,616	)	$	(2,716	)	$	7,639
State and other		22,295			17,134			8,798
		20,679			14,418			16,437
Deferred expense (benefit):
Federal		138,804			120,234			71,832
State		18,415			(24,552	)		23,918
		157,219			95,682			95,750
Tax expense relating to uncertain tax positions, including accrued interest		6,538			3,667			990
Income tax expense	$	184,436		$	113,767		$	113,177

Income tax expense (benefit) attributable to continuing operations consists of the following components:

	Years Ended December 31,
	2011			2010			2009
Current expense:
Federal	$	(835	)	$	6,190		$	11,174
State and other		33,491			17,134			8,798
		32,656			23,324			19,972
Deferred expense (benefit):
Federal		210,415			226,188			125,182
State		42,989			(2,293	)		38,111
		253,404			223,895			163,293
Tax expense relating to uncertain tax positions, including accrued interest		6,538			3,667			990
Income tax expense	$	292,598		$	250,886		$	184,255

Reconciliation of Effective Tax Rate from Continuing Operations

The income tax expense (benefit) attributable to Cablevision's continuing operations differs from the amount derived by applying the statutory federal rate to pretax income principally due to the effect of the following items:

	Years Ended December 31,
	2011			2010			2009

Federal tax expense at statutory federal rate	$	148,083		$	112,531		$	82,953
State income taxes, net of federal benefit		29,236			11,784			19,577
Changes in the valuation allowance		1,822			(2,428	)		(1,427	)
Change in the state rate used to determine deferred taxes, net of federal benefit		(1,015	)		5,842			(6,764	)
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits		1,699			1,202			(105	)
Impact of non-deductible officers' compensation, net		77			3,989			7,264
Other non-deductible expenses		3,742			3,246			3,340
Increase in certain state and city net operating loss carry forwards pursuant to the finalization of an examination with a taxing authority		-			(18,951	)		-
Elimination of state carry forwards pursuant to LLC conversions		-			-			9,095
Research credit		(1,800	)		(1,800	)		(1,200	)
Tax expense from exclusion of pretax loss of an entity that is consolidated for financial reporting purposes but not for income tax purposes		2,509			335			-
Other, net		83			(1,983	)		444
Income tax expense	$	184,436		$	113,767		$	113,177

The income tax expense (benefit) attributable to CSC Holdings' continuing operations differs from the amount derived by applying the statutory federal rate to pretax income principally due to the effect of the following items:

	Years Ended December 31,
	2011			2010			2009

Federal tax expense (benefit) at statutory federal rate	$	232,987		$	235,187		$	144,808
State income taxes, net of federal benefit		45,237			30,263			29,777
Changes in the valuation allowance		1,822			(2,428	)		(1,427	)
Change in the state rate used to determine deferred taxes, net of federal benefit		5,800			2,925			(8,510	)
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits		1,699			1,202			(105	)
Impact of non-deductible officers' compensation, net		77			3,989			7,264
Other non-deductible expenses		3,742			3,246			3,340
Increase in certain state and city net operating loss carry forwards pursuant to the finalization of an examination with a taxing authority		-			(18,951	)		-
Elimination of state carry forwards pursuant to LLC conversions		-			-			9,095
Research credit		(1,800	)		(1,800	)		(1,200	)
Tax expense from exclusion of pretax loss of an entity that is consolidated for financial reporting purposes but not for income tax purposes		2,509			335			-
Other, net		525			(3,082	)		1,213
Income tax expense	$	292,598		$	250,886		$	184,255

Significant Components of Deferred Tax Assets and Liabilities

For Cablevision, the tax effects of temporary differences which give rise to significant portions of deferred tax assets or liabilities and the corresponding valuation allowance at December 31, 2011 and 2010 are as follows:

	December 31,
	2011			2010
Deferred Tax Asset (Liability)
Current
NOLs and tax credit carry forwards	$	69,689		$	96,570
Compensation and benefit plans		41,330			43,074
Allowance for doubtful accounts		5,286			6,260
Other liabilities		10,868			8,626
Deferred tax asset		127,173			154,530
Valuation allowance		(2,311	)		(2,217	)
Net deferred tax asset, current		124,862			152,313

Investments		(39,937	)		(48,668	)
Deferred tax liability, current		(39,937	)		(48,668	)

Net deferred tax asset, current		84,925			103,645

Noncurrent
NOLs and tax credit carry forwards		523,548			513,319
Compensation and benefit plans		85,122			57,929
Investments		-			4,565
Partnership investments		159,456			161,501
Other		11,948			8,483
Deferred tax asset		780,074			745,797
Valuation allowance		(12,036	)		(11,224	)
Net deferred tax asset, noncurrent		768,038			734,573

Fixed assets and intangibles		(793,332	)		(620,987	)
Investments		(35,943	)		-
Other assets		(19,309	)		(14,299	)
Deferred tax liability, noncurrent		(848,584	)		(635,286	)

Net deferred tax asset (liability), noncurrent		(80,546	)		99,287

Total net deferred tax asset	$	4,379		$	202,932

For CSC Holdings, the tax effects of temporary differences which give rise to significant portions of deferred tax assets or liabilities and the corresponding valuation allowance at December 31, 2011 and 2010 are as follows:

	December 31,
	2011			2010
Deferred Tax Asset (Liability)
Current
NOLs and tax credit carry forwards	$	79,318		$	152,163
Compensation and benefit plans		41,330			43,074
Allowance for doubtful accounts		5,286			6,260
Other liabilities		10,868			8,626
Deferred tax asset		136,802			210,123
Valuation allowance		(5,493	)		(5,968	)
Net deferred tax asset, current		131,309			204,155

Investments		(39,937	)		(48,668	)
Deferred tax liability, current		(39,937	)		(48,668	)

Net deferred tax asset, current		91,372		$	155,487

Noncurrent
Tax credit carry forwards		492			41,634
Compensation and benefit plans		85,122			57,929
Investments		-			4,565
Partnership investments		159,456			161,501
Other		11,948			8,483
Deferred tax asset		257,018			274,112
Valuation allowance		(8,854	)		(7,473	)
Net deferred tax asset, noncurrent		248,164			266,639

Fixed assets and intangibles		(793,332	)		(620,987	)
Investments		(35,943	)		-
Other assets		(19,309	)		(14,299	)
Deferred tax liability, noncurrent		(848,584	)		(635,286	)

Net deferred tax liability, noncurrent		(600,420	)		(368,647	)

Total net deferred tax liability	$	(509,048	)	$	(213,160	)

Reconciliation of Unrecognized Tax Benefits Associated with Uncertain Tax Positions, Excluding Associated Deferred Tax Benefits and Accrued Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions, excluding associated deferred tax benefits and accrued interest, is as follows:

Balance at December 31, 2010	$	60,098
Increases related to prior year tax positions		4,535
Decreases related to prior year tax positions		(341	)
Increases related to current year tax positions		329
Settlements		-
Lapse of statute of limitations		-
Balance at December 31, 2011	$	64,621