INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense for the years ended December 31, 2023, 2022 and 2021 consist of the following components:


	Altice USA						CSC Holdings
	Years Ended December 31,						Years Ended December 31,
	2023		2022		2021		2023		2022		2021
Current expense (benefit):
Federal	$	227,189	$	133,329	$	168,397	$	227,189	$	133,329	$	179,032
State	54,130		81,076		56,211		62,312		88,068		56,211
Foreign	105		128		(3)		105		128		(3)
	281,424		214,533		224,605		289,606		221,525		235,240
Deferred expense (benefit):
Federal	(210,378)		(43,797)		70,989		(210,378)		(43,797)		70,989
State	(16,547)		80,356		(30,108)		(21,680)		69,676		(38,608)
Foreign	10		(174)		(180)		10		(174)		(180)
	(226,915)		36,385		40,701		(232,048)		25,705		32,201
	54,509		250,918		265,306		57,558		247,230		267,441
Tax expense relating to uncertain tax positions	(14,981)		44,922		29,669		(14,981)		44,922		29,669
Income tax expense	$	39,528	$	295,840	$	294,975	$	42,577	$	292,152	$	297,110

Schedule of Effective Income Tax Rate Reconciliation

The income tax expense attributable to operations differs from the amount derived by applying the statutory federal rate to pretax income principally due to the effect of the following items:


	Altice USA						CSC Holdings
	Years Ended December 31,						Years Ended December 31,
	2023		2022		2021		2023		2022		2021
Federal tax expense at statutory rate	$	24,899	$	108,513	$	274,240	$	24,899	$	108,513	$	274,240
State income taxes, net of federal impact	6,436		26,527		21,492		9,842		28,768		13,973
Minority interest	(5,494)		(5,914)		(5,092)		(5,494)		(5,914)		(5,092)
Changes in the valuation allowance	13,847		20,176		13,573		14,099		15,494		12,793
Change in New York state rate to measure deferred taxes, net of federal impact	—		112,117		—		—		112,117		—
Other changes in the state rates used to measure deferred taxes, net of federal impact	23,909		(9,603)		(6,924)		23,300		(10,849)		(7,125)
Tax expense (benefit) relating to uncertain tax positions	(14,311)		36,281		24,580		(14,311)		36,281		24,580
Tax credits	(4,201)		(3,544)		(2,500)		(4,201)		(3,544)		(2,500)
Excess tax deficiencies (benefits) related to share-based compensation including non-deductible carried unit plans	11,696		10,321		(2,602)		11,696		10,321		(2,602)
Non-deductible officers compensation	3,934		4,916		7,201		3,934		4,916		7,201
Foreign losses of disregarded entities	(6,097)		(6,352)		—		(6,097)		(6,352)		—
Business dispositions	(46,591)		—		(12,643)		(46,591)		—		(12,643)
Goodwill impairment	34,241		—		—		34,241		—		—
Other permanent differences	—		—		(22,613)		—		—		(22,613)

Other, net	(2,740)		2,402		6,263		(2,740)		2,401		16,898
Income tax expense	$	39,528	$	295,840	$	294,975	$	42,577	$	292,152	$	297,110

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to significant portions of deferred tax assets or liabilities and the corresponding valuation allowance are as follows:


	Altice USA				CSC Holdings
	December 31,				December 31,
	2023		2022		2023		2022
Noncurrent
NOLs, capital loss, and tax credit carry forwards (a)	$	130,134	$	117,995	$	104,071	$	86,547
Compensation and benefit plans	90,853		97,115		90,853		97,115
Restructuring liability	7,220		2,079		7,220		2,079
Other liabilities	50,440		48,433		50,440		48,433
Research and experimental expenditures	33,427		22,292		33,427		22,292
Derivative contracts	(40,357)		315,861		(40,357)		315,861
Interest deferred for tax purposes	536,284		272,842		536,284		272,842
Operating lease liability	79,263		71,232		79,263		71,232

Deferred tax assets	887,264		947,849		861,201		916,401
Less: Valuation allowance	(87,407)		(73,560)		(64,844)		(50,745)
Net deferred tax assets, noncurrent	799,857		874,289		796,357		865,656

Deferred tax liabilities:
Fixed assets and intangibles	(5,250,112)		(5,185,319)		(5,250,112)		(5,185,319)
Operating lease asset	(64,163)		(58,360)		(64,163)		(58,360)
Investments	1,519		(393,700)		1,519		(393,700)
Partnership investments	(173,198)		(155,434)		(173,198)		(155,434)
Prepaid expenses	(14,630)		(11,477)		(14,630)		(11,477)
Fair value adjustments related to debt and deferred financing costs	(1,751)		(5,698)		(1,751)		(5,698)
Opportunity Zone tax deferral	(145,655)		(145,608)		(145,655)		(145,608)
Deferred tax liability, noncurrent	(5,647,990)		(5,955,596)		(5,647,990)		(5,955,596)
Total net deferred tax liabilities	$	(4,848,133)	$	(5,081,307)	$	(4,851,633)	$	(5,089,940)

Summary of Income Tax Contingencies

The following is the activity relating to our liability for uncertain tax positions:


	Years Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	70,593	$	25,296	$	1,301
Increases (decreases) from prior period positions	(18,714)		871		(637)
Increases from current period positions	1,131		44,426		24,632
Balance at end of year	$	53,010	$	70,593	$	25,296