INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAXES:

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	2014			2013			2012
Provision for income taxes - continuing operations	$	97,432		$	41,249		$	67,852
(Benefit) provision for income taxes - discontinued operations	—			(10,806		)	663
	$	97,432		$	30,443		$	68,515
Current:
Federal	$	92,609		$	16,229		$	56,106
State	5,641			(8,305		)	4,095
	98,250			7,924			60,201
Deferred:
Federal	3,170			20,214			9,151
State	(3,988		)	2,305			(837		)
	(818		)	22,519			8,314
	$	97,432		$	30,443		$	68,515

Schedule of reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations

	2014		2013		2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
Adjustments-
State income taxes, net of federal tax benefit (1)	(0.1	)%	8.3	%	(0.4	)%
Non-deductible items (2)	3.4	%	1.4	%	0.3	%
Domestic Production Activities Deduction (3)	(3.2	)%	(3.8	)%	(1.4	)%
Effect of consolidated VIEs (4)	0.8	%	3.7	%	(3.4	)%
Change in state tax laws and rates	(0.1	)%	(5.5	)%	0.2	%
Changes in unrecognized tax benefits (5)	(3.4	)%	0.8	%	1.5	%
Other	(0.9	)%	0.1	%	0.2	%
Effective income tax rate	31.5	%	40.0	%	32.0	%

(1) Included in state income taxes are deferred income tax effects related to certain acquisitions and/or intercompany mergers.

(2) Included in 2014 is the current income taxes related to the taxable gain on sale of WHTM’s assets in Harrisburg, PA, which we acquired with the stock purchase of the Allbritton Companies in the same year.  There was no book gain on this sale.  Since a deferred tax liability was not established for the excess of book basis over tax basis of goodwill, deferred tax benefit does not offset the current tax expense.

(3) During the years ended December 31, 2014 and 2013, we recorded a $0.8 million reduction in and a $2.0 million of additional benefit, respectively, related to domestic production activities deduction upon filing the respective 2013 and 2012 federal income tax returns.

(4) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs.  These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.  For the year ended December 31, 2012, the taxes on consolidated VIEs include a release of $7.7 million of valuation allowance related to certain deferred tax assets of Cunningham, one of our consolidated VIEs, as the weight of all available evidence supported realization of the deferred tax assets.  This assessment was based primarily on the sufficiency of forecasted taxable income necessary to utilize net operating loss carryforwards expiring in the years 2022 — 2029.  This VIE files separate income tax returns.  Any resulting tax liabilities are nonrecourse to us, and we are not entitled to any benefit resulting from the deferred tax assets of the VIE.  As discussed in Variable Interest Entities under Note 1. Nature of Operations and Summary of Significant Accounting Policies, Cunningham was deconsolidated in 2014.

(5) During the year ended December 31, 2014, we recorded a $10.8 million benefit related to the release of liabilities for unrecognized tax benefits as a result of expiration of the applicable statute of limitations.  See table below which summarizes the activity related to our accrued unrecognized tax benefits.

Schedule of total deferred tax assets and deferred tax liabilities

Total deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 were as follows (in thousands):

	2014			2013
Current and Long-Term Deferred Tax Assets:
Net operating and capital losses:
Federal	$	2,384		$	5,027
State	67,430			63,051
Broadcast licenses	11,993			27,652
Intangibles	32,182			3,451
Other	27,677			35,677
	141,666			134,858
Valuation allowance for deferred tax assets	(58,896		)	(51,062		)
Total deferred tax assets	$	82,770		$	83,796
Current and Long-Term Deferred Tax Liabilities:
Broadcast licenses	$	(36,083	)	$	(20,395	)
Intangibles	(507,545		)	(270,008		)
Property & equipment, net	(72,819		)	(52,514		)
Contingent interest obligations	(40,941		)	(51,621		)
Other	(34,314		)	(2,037		)
Total deferred tax liabilities	(691,702		)	(396,575		)
Net tax liabilities	$	(608,932	)	$	(312,779	)

Schedule of activity related to accrued unrecognized tax benefits

The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands):

	2014			2013			2012
Balance at January 1,	$	16,883		$	25,965		$	26,088
Reductions related to prior year tax positions	—			(8,928		)	(123		)
Increases related to current year tax positions	1,450			693			—
Reductions related to settlements with taxing authorities	(2,910		)	(847		)	—
Reductions related to expiration of the applicable statute of limitations	(8,285		)	—			—
Balance at December 31,	$	7,138		$	16,883		$	25,965