INCOME TAXES:

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12.  INCOME TAXES:

The Company’s provision for income taxes from continuing operations was approximately $33.2 million for the year ended December 31, 2012, compared to a provision for income taxes of approximately $66.7 million and $4.0 million for the years ended December 31, 2011 and 2010, respectively. A reconciliation of the statutory federal income taxes to the recorded provision for income taxes from continuing operations is as follows:

	For the Years Ended December 31,
	2012			2011		2010
	(In thousands)
Statutory tax (@ 35% rate)	$	(7,260	)	$	27,912	$	(7,832	)
Effect of state taxes, net of federal		(450	)		4,331		(613	)
Effect of state rate and tax law changes		407			750		101
Other permanent items		149			1		77
Interest disallowed under Internal Revenue Code section 162(i)		5,364			8,825		765
Effect of equity adjustments including ASC 718		—			5		45
Internal Revenue Code section 162(m)		1,012			2,226		2,504
Valuation allowance		34,644			14,861		3,145
Effect of permanent impairment of long-lived assets		—			4,540		5,735
Expiring NOLs and charitable carryovers		137			1,037		454
Forfeiture of stock-based compensation		163			1,151		(255	)
Uncertain tax positions		(709	)		—		—
Other		(222	)		1,047		(155	)
Provision for income taxes	$	33,235		$	66,686	$	3,971

The components of the provision for income taxes from continuing operations are as follows:

	For the Years Ended December 31,
	2012			2011		2010
	(In thousands)
Federal:
Current	$	(639	)	$	1,980	$	2,199
Deferred		29,120			53,113		1,010
State:
Current		(649	)		555		461
Deferred		5,403			11,038		301
Provision for income taxes	$	33,235		$	66,686	$	3,971

The significant components of the Company’s deferred tax assets and liabilities are as follows:

	As of December 31,
	2012			2011
	(In thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	979		$	1,130
Accruals		560			512
Total current deferred tax assets before valuation allowance		1,539			1,642
Valuation allowance		(1,330	)		(1,584	)
Total current deferred tax assets, net		209			58
Intangible assets		15,073			16,528
Fixed assets		—			1,459
Stock-based compensation		1,348			1,474
Net operating loss carryforwards		284,702			249,059
Other		668			1,451
Total noncurrent deferred tax assets before valuation allowance		301,791			269,971
Valuation allowance		(278,290	)		(243,343	)
Net noncurrent deferred tax assets		23,501			26,628
Total deferred tax assets	$	23,710		$	26,686
Deferred tax liabilities:
Prepaid expenses		(97	)		—
Total current deferred tax liability		(97	)		—
Intangible assets		(154,464	)		(117,616	)
Fixed assets		(110	)		—
Partnership interests		(56,606	)		(61,728	)
Other		(570	)		(863	)
Total noncurrent deferred tax liabilities		(211,750	)		(180,207	)
Total deferred tax liabilities		(211,847	)		(180,207	)
Net current deferred tax asset		112			—
Net noncurrent deferred tax liability		(188,249	)		(153,521	)
Net deferred tax liability	$	(188,137	)	$	(153,521	)

As of December 31, 2012, the Company had federal, state, and city net operating loss (“NOL”) carryforward amounts of approximately $716.8 million, $697.8 million, and $179.9 million respectively. The state and city NOLs are applied separately from the federal NOL as the Company generally files separate state and city returns for each subsidiary. Additionally, the amount of the state NOLs may change if future state apportionment factors differ from current factors. The NOLs may be subject to limitation under Internal Revenue Code Section 382. The NOLs begin to expire as early as 2017, with the final expirations in 2032.

Deferred income taxes reflect the impact of temporary differences between the assets and liabilities recognized for financial reporting purposes and amounts recognized for tax purposes. Deferred taxes are based on tax laws as currently enacted.

The Company had unrecognized tax benefits of approximately $5.1 million related to state NOLs of approximately $57.1 million as of December 31, 2012.

The Company concluded it was more likely than not that the benefit from certain of its deferred tax assets (“DTAs”) would not be realized. The Company considered its historically profitable jurisdictions, its sources of future taxable income and tax planning strategies in determining the amount of valuation allowance recorded. As part of that assessment, the Company also determined that it was not appropriate under generally accepted accounting principles to benefit its DTAs with deferred tax liabilities (“DTLs”) related to indefinite-lived intangibles that cannot be scheduled to reverse in the same requisite period. Because the DTL in this case would not reverse until some future indefinite period when the intangibles are either sold or impaired, any resulting temporary differences cannot be considered a source of future taxable income to support realization of the DTAs. As a result of the assessment, and given the current total three year cumulative loss position (after excluding the 2011 gain recognized in connection with the consolidation of TV One), the uncertainty of future taxable income and the feasibility of tax planning strategies, the Company recorded a valuation allowance of approximately $279.6 million, $244.9 million and $230.4 million as of December 31, 2012, 2011 and 2010, respectively.

The nature of the uncertainties pertaining to the Company’s income taxes is primarily due to various state NOL positions. As of December 31, 2012, the Company had unrecognized tax benefits of approximately $5.1 million, of which a net amount of approximately $3.3 million, if recognized, would impact the effective tax rate if there was no valuation allowance. The Company estimates no change to its unrecognized tax benefits prior to the NOL expiration. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2012			2011			2010
	(In thousands)
Balance as of January 1	$	5,780		$	5,822		$	6,326
Additions (reductions) for tax position related to current year		—			—			(475	)
Reductions for tax positions as a result of the lapse of applicable statutes of limitations		(600	)		(42	)		(29	)
Reductions for tax positions as a result of tax settlements		(109	)		—			—
Balance as of December 31	$	5,071		$	5,780		$	5,822

As of December 31, 2012, the Company was not under audit in any jurisdiction for federal or state income tax purposes. However, the Company’s open tax years for federal income tax examinations include the tax years ended December 31, 2009 through 2012. Additionally, prior years are open to the extent of the amount of the net operating loss from that year. For state and local purposes, the open years for tax examinations include the tax years ended December 31, 2008 through 2012.