INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule Of Components Of Income Before Income Taxes And Earnings In Equity Interests

The components of income before income taxes and earnings in equity interests are as follows (in thousands):

	Years Ended December 31,
	2011		2012		2013
United States	$	533,262	$	5,056,643	$	538,824
Foreign		294,254		157,564		94,459
Income before income taxes and earnings in equity interests	$	827,516	$	5,214,207	$	633,283

Schedule Of Provision (Benefit) For Income Taxes

The provision for income taxes is composed of the following (in thousands):

	Years Ended December 31,
	2011			2012			2013
Current:
United States federal	$	141,922		$	2,278,759		$	138,032
State		(11,037	)		361,788			49,872
Foreign		40,490			68,816			49,790
Total current provision for income taxes		171,375			2,709,363			237,694
Deferred:
United States federal		77,012			(741,628	)		(63,166	)
State		(4,437	)		(29,470	)		(22,498	)
Foreign		(2,183	)		1,778			1,362
Total deferred provision (benefit) for income taxes		70,392			(769,320	)		(84,302	)
Provision for income taxes	$	241,767		$	1,940,043		$	153,392

Schedule Of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before income taxes and earnings in equity interests as follows (in thousands):

	Years Ended December 31,
	2011			2012			2013
Income tax at the U.S. federal statutory rate of 35 percent	$	289,630		$	1,824,973		$	221,648
State income taxes, net of federal benefit		4,627			237,637			23,000
Stock-based compensation expense		20,021			19,946			16,015
Research tax credits		(10,499	)		—			(18,036	)
Effect of non-U.S. operations		(49,781	)		(138,078	)		(47,968	)
Settlement with tax authorities		(14,685	)		(4,711	)		(46,943	)
Remeasurement of prior year tax positions		—			—			(24,246	)
Acquisition related non-deductible expenses		—			1,894			9,296
Goodwill impairment charge		—			—			22,244
Other		2,454			(1,618	)		(1,618	)
Provision for income taxes	$	241,767		$	1,940,043		$	153,392

Schedule Of Deferred Tax Assets And Liabilities

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows (in thousands):

	December 31,
	2012			2013
Deferred income tax assets:
Net operating loss and tax credit carryforwards	$	219,054		$	148,060
Stock-based compensation expense		81,910			66,583
Non-deductible reserves and expenses		265,751			431,374
Depreciation expense		21,386			22,937
Unrealized investment gains		3,584			2,878
Intangible assets		5,861			7,764
Gross deferred income tax assets		597,546			679,596
Valuation allowance		(51,503	)		(36,690	)
Deferred income tax assets	$	546,043		$	642,906
Deferred income tax liabilities:
Purchased intangible assets		(29,960	)		(156,435	)
Depreciation expense		(118,808	)		(86,641	)
Investments in equity interests		(13,120	)		(323,368	)
Restructuring liabilities		(6,547	)		(7,235	)
Deferred income tax liabilities	$	(168,435	)	$	(573,679	)
Net deferred income tax assets	$	377,608		$	69,227

Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits

The total amount of gross unrecognized tax benefits was $695 million as of December 31, 2013, of which up to $466 million would affect the Company’s effective tax rate if realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits in 2012 and 2013 is as follows (in thousands):

	2012			2013
Unrecognized tax benefits balance at January 1	$	532,862		$	727,367
Gross increase for tax positions of prior years		9,441			69,188
Gross decrease for tax positions of prior years		(32,513	)		(40,298	)
Gross increase for tax positions of current year		231,525			34,556
Settlements		(10,520	)		(94,640	)
Lapse of statute of limitations		(3,428	)		(888	)
Unrecognized tax benefits balance at December 31	$	727,367		$	695,285

Summary Of Remaining Balances Of Unrecognized Tax Benefits

The remaining balances are recorded on the Company’s consolidated balance sheets as follows (in thousands):

	December 31,
	2012			2013
Total unrecognized tax benefits balance	$	727,367		$	695,285
Amounts netted against related deferred tax assets		(83,635	)		(89,048	)
Unrecognized tax benefits recorded on consolidated balance sheets	$	643,732		$	606,237
Amounts classified as accrued expenses and other current liabilities	$	30,484		$	—
Amounts classified as deferred and other long-term tax liabilities, net		613,248			606,237
Unrecognized tax benefits recorded on consolidated balance sheets	$	643,732		$	606,237