Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure

Income taxes receivable (payable)

December 31,	2013		2012
(Dollars in thousands)
Federal income taxes (payable)	$	(20,288)	$	(5,455)
State income taxes receivable		2,397		9,625

Income tax expense (benefit)

Income tax expense (benefit) is summarized as follows:
Year Ended December 31,		2013		2012		2011
(Dollars in thousands)
Current
	Federal	$	181,579	$	9,705	$	(94,627)
	State		11,614		5,092		5,583
Deferred
	Federal		(65,970)		61,113		214,722
	State		(1,180)		(2,328)		(12,175)
		$	126,043	$	73,582	$	113,503

Income tax reconciliation

Year Ended December 31,		2013				2012				2011
		Amount		Rate		Amount		Rate		Amount		Rate
(Dollars in millions)
Statutory federal income tax expense and rate		$	102.5	35.0	%	$	68.7	35.0	%	$	127.3	35.0	%
State income taxes, net of federal benefit (1)			10.5	3.6			8.4	4.2			(20.9)	(5.7)
Effect of noncontrolling interests			(1.0)	(0.4)			-	-			(3.0)	(0.8)
Gains (losses) on investments and sale of assets (2)			14.9	5.1			-	-			-	-
Correction of deferred taxes (3)			-	-			(6.1)	(3.1)			6.0	1.6
Other differences, net			(0.9)	(0.3)			2.6	1.4			4.1	1.1
Total income tax expense and rate		$	126.0	43.0	%	$	73.6	37.5	%	$	113.5	31.2	%
(1)	Net state income taxes include changes in the valuation allowance. The 2011 benefit primarily relates to the ability to utilize net operating losses as a result of state income tax law changes. In addition, state tax benefits related to the settlement of state tax audits and the expiration of statutes of limitations are included in 2013, 2012 and 2011.
(2)	Represents 2013 tax expense related to the NY1 & NY2 Deconsolidation and the Divestiture Transaction.
(3)	TDS recorded immaterial adjustments to correct deferred tax balances in 2012 and 2011 related to tax basis and law changes that related to periods prior to 2012 and 2011, respectively.

Temporary income tax differences

December 31,		2013		2012
(Dollars in thousands)
Noncurrent deferred tax assets
	Net operating loss (“NOL”) carryforwards	$	121,651	$	121,111
	Stock-based compensation		50,563		53,330
	Compensation and benefits - other		12,681		32,484
	Deferred rent		20,500		16,862
	Other		32,444		32,654
			237,839		256,441
	Less valuation allowance		(70,609)		(69,108)
	Total noncurrent deferred tax assets		167,230		187,333
Noncurrent deferred tax liabilities
	Property, plant and equipment		637,090		666,201
	Licenses/intangibles		251,578		250,860
	Partnership investments		136,581		127,331
	Other		4,956		5,521
	Total noncurrent deferred tax liabilities		1,030,205		1,049,913
Net noncurrent deferred income tax liability		$	862,975	$	862,580

Deferred tax valuation allowance

A summary of TDS' deferred tax asset valuation allowance is as follows:
		2013		2012		2011
(Dollars in thousands)
Balance at January 1,		$	70,502	$	49,686	$	71,014
	Charged to income tax expense		1,954		5,268		(28,511)
	Charged to other accounts		6,608		15,548		7,183
Balance at December 31,		$	79,064	$	70,502	$	49,686
As of December 31, 2013, the valuation allowance reduced current deferred tax assets by $8.5 million and noncurrent deferred tax assets by $70.6 million.

Income tax unrecognized benefits summary

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
		2013		2012		2011
(Dollars in thousands)
Unrecognized tax benefits balance at January 1,		$	28,420	$	28,841	$	34,002
	Additions for tax positions of current year		6,388		7,027		4,369
	Additions for tax positions of prior years		1,858		1,673		171
	Reductions for tax positions of prior years		(467)		(7)		(1,973)
	Reductions for settlements of tax positions		(1,337)		(21)		(976)
	Reductions for lapses in statutes of limitations		(4,472)		(9,093)		(6,752)
Unrecognized tax benefits balance at December 31,		$	30,390	$	28,420	$	28,841