Liberty Media Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)


	Years ended December 31,
	2014		2013	2012
	amounts in millions
Current:
Federal	$	18	(45)	(7)
State and local		7	3	4
Foreign		—	5	(1)
		25	(37)	(4)
Deferred:
Federal		(103)	165	(407)
State and local		12	7	(58)
Foreign		—	—	—
		(91)	172	(465)
Income tax benefit (expense)	$	(66)	135	(469)

Schedule of Effective Income Tax Rate Reconciliation


	Years ended December 31,
	2014		2013	2012
	amounts in millions
Computed expected tax benefit (expense)	$	(161)	(3,100)	(570)
Non-taxable gain on book consolidation of SIRIUS XM		—	3,054	—
Liquidation of consolidated subsidiaries		107	—	101
Non-taxable exchange of subsidiary		—	174	—
Dividends received deductions		99	46	40
Sale of subsidiary shares to subsidiary treated as a dividend for tax		(123)	(56)	—
State and local income taxes, net of federal income taxes		(4)	11	(46)
Change in valuation allowance affecting tax expense		(2)	9	1
Recognition of tax benefits not previously recognized, net		11	—	5
Other, net		7	(3)	—
Income tax benefit (expense)	$	(66)	135	(469)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:


	December 31,
	2014		2013
	amounts in millions
Deferred tax assets:
Net operating and capital loss carryforwards	$	2,119	2,487
Accrued stock compensation		127	99
Other accrued liabilities		88	44
Discount on convertible debt		—	34
Deferred revenue		678	598
Other future deductible amounts		10	24
Deferred tax assets		3,022	3,286
Valuation allowance		(5)	(9)
Net deferred tax assets		3,017	3,277
Deferred tax liabilities:
Investments		229	457
Intangible assets		3,991	3,955
Other		304	261
Deferred tax liabilities		4,524	4,673
Net deferred tax liabilities	$	1,507	1,396

The Company's deferred tax assets and liabilities are reported in the accompanying consolidated balance sheets as follows:


	December 31,
	2014		2013
	amounts in millions
Current deferred tax liabilities (assets)	$	(931)	(916)
Long-term deferred tax liabilities (assets)		2,438	2,312
Net deferred tax liabilities	$	1,507	1,396

Summary of Income Tax Contingencies


	December 31,
	2014		2013
	amounts in millions
Balance at beginning of year	$	30	29
Reductions for tax positions of prior years		(11)	—
Lapse in the statute of limitations		(17)	—
Increase in tax positions from acquisition		—	1
Balance at end of year	$	2	30

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References + Details