jvid视频 Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes

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Income Taxes

(11)Income Taxes

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Income tax benefit (expense) consists of:

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听	听	听	听	听	听	听	听	听
听	听	Years听ended听December听31,						听
听	听听听听	2016		听听听听	2015	听听听听	2014	听
听	听	amounts听in听millions						听
Current:	听	听	听	听	听	听	听	听
Federal	听	$	(39)	听	(17)	听	18	听
State and local	听	听	(29)	听	(17)	听	7	听
Foreign	听	听	听鈥�	听	(1)	听	听鈥�	听
听	听	听	(68)	听	(35)	听	25	听
Deferred:	听	听	听	听	听	听	听	听
Federal	听	听	(388)	听	(145)	听	(103)	听
State and local	听	听	(39)	听	(30)	听	12	听
Foreign	听	听	鈥�	听	鈥�	听	鈥�	听
听	听	听	(427)	听	(175)	听	(91)	听
Income tax benefit (expense)	听	$	(495)	听	(210)	听	(66)	听

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Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

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听	听	听	听	听	听	听	听	听
听	听	Years听ended听December听31,						听
听	听听听听	2016		听听听听	2015	听听听听	2014	听
听	听	amounts听in听millions						听
Computed expected tax benefit (expense)	听	$	(497)	听	(160)	听	(161)	听
Liquidation of consolidated subsidiaries	听	听	听鈥�	听	听鈥�	听	107	听
Dividends received deductions	听	听	11	听	2	听	99	听
Taxable dividends not recognized for book purposes	听	听	(11)	听	听鈥�	听	听鈥�	听
Sale of subsidiary shares to subsidiary treated as a dividend for tax	听	听	听鈥�	听	听鈥�	听	(123)	听
State and local income taxes, net of federal income taxes	听	听	(46)	听	(1)	听	(4)	听
Federal tax credits	听	听	67	听	听鈥�	听	听鈥�	听
Change in valuation allowance affecting tax expense	听	听	(1)	听	(44)	听	(2)	听
Recognition of tax benefits not previously recognized, net	听	听	听鈥�	听	听鈥�	听	11	听
Other, net	听	听	(18)	听	(7)	听	7	听
Income tax benefit (expense)	听	$	(495)	听	(210)	听	(66)	听

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For the year ended December 31, 2016 the significant reconciling item, as noted in the table above, is state income taxes offset with federal income tax credits claimed by SIRIUS XM related to research and development activities. 听

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For the year ended December 31, 2015 the significant reconciling item, as noted in the table above, is a $44 million increase in the valuation allowance due to the effect of a tax law change in the District of Columbia (鈥淒.C.鈥�) which reduces the future allocation of SIRIUS XM鈥檚 taxable income in D.C. As a result, SIRIUS XM expects it will utilize less of its D.C. net operating losses in the future, resulting in a $44 million increase in the valuation allowance offsetting the deferred tax asset for these net operating losses.

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For the year ended December 31, 2014 the significant reconciling items, as noted in the table above, are the result of taxes attributable to our sale of SIRIUS XM shares to SIRIUS XM, which is treated as a taxable distribution, but is not recognized for financial statement purposes. In addition, we recognized a benefit on our liquidation of a consolidated partnership investment and the related reduction in the tax basis of the partnership鈥檚 assets, which was not recognized for financial statement purposes and a dividends received deduction, primarily attributable to the taxable SIRIUS XM distribution during the year.

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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:

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听	听	听	听	听	听	听
听	听	December听31,				听
听	听听听听	2016		听听听听	2015	听
听	听	amounts听in听millions				听
Deferred tax assets:	听	听	听	听	听	听
Net operating and capital loss carryforwards and tax credits	听	$	1,381	听	1,795	听
Accrued stock compensation	听	听	136	听	140	听
Other accrued liabilities	听	听	102	听	76	听
Deferred revenue	听	听	761	听	729	听
Other future deductible amounts	听	听	20	听	7	听
Deferred tax assets	听	听	2,400	听	2,747	听
Valuation allowance	听	听	(50)	听	(49)	听
Net deferred tax assets	听	听	2,350	听	2,698	听
Deferred tax liabilities:	听	听	听	听	听	听
Investments	听	听	81	听	67	听
Fixed assets	听	听	330	听	313	听
Intangible assets	听	听	3,961	听	3,955	听
Discount on debt	听	听	3	听	30	听
Deferred tax liabilities	听	听	4,375	听	4,365	听
Net deferred tax liabilities	听	$	2,025	听	1,667	听

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SIRIUS XM's deferred tax assets and liabilities are included in the amounts above although SIRIUS XM's deferred tax assets and liabilities are not offset with Liberty's deferred tax assets and liabilities as SIRIUS XM is not included in the consolidated group tax return of Liberty. Liberty's acquisition of a controlling interest in SIRIUS XM's outstanding common stock during January 2013 did not cause a change in control under Section 382 of the Code.

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The Company's net increase in the valuation allowance of $1 million in 2016 was recorded entirely to income tax expense.

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At December听31, 2016, the Company had federal and state net operating loss carryforwards for income tax purposes which, if not utilized to reduce taxable income in future periods, will expire on various dates through 2035. The Company's federal net operating loss carryforwards are primarily attributable to those at the SIRIUS XM level ($3.2 billion, $1.3 billion tax effected).

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A reconciliation of unrecognized tax benefits is as follows:

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听	听	听	听	听	听	听	听	听
听	听	December听31,						听
听	听听听听	2016		听听听听	2015	听	2014	听
听	听	amounts听in听millions						听
Balance at beginning of year	听	$	254	听	2	听	30	听
Reductions for tax positions of prior years	听	听	(1)	听听听听	听鈥�	听听听听	(11)	听
Lapse in the statute of limitations	听	听	听鈥�	听	听鈥�	听	(17)	听
Increase in tax positions for current year	听	听	51	听	听鈥�	听	听鈥�	听
Increase in tax positions from prior years	听	听	听鈥�	听	252	听	听鈥�	听
Increase in tax positions from acquisition	听	听	听鈥�	听	听鈥�	听	听鈥�	听
Balance at end of year	听	$	304	听	254	听	2	听

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As of December听31, 2016, the Company had recorded tax reserves of $304 million related to unrecognized tax benefits for uncertain tax positions. If such tax benefits were to be recognized for financial statement purposes, less than $199 million dollars would be reflected in the Company's tax expense and affect its effective tax rate. We do not currently anticipate that our existing reserves related to uncertain tax positions as of December 31, 2016 will significantly increase or decrease during the twelve-month period ending December 31, 2017; however, various events could cause our current expectations to change in the future. The Company's estimate of its unrecognized tax benefits related to uncertain tax positions requires a high degree of judgment.

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As of December听31, 2016, the Company's tax years prior to 2012 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2013 through 2015 tax years. The Company's tax loss carryforwards from its 2011 through 2015 tax years are still subject to adjustment. The Company's 2016 tax year is being examined currently as part of the IRS's Compliance Assurance Process program. Various states are currently examining the Company's prior years state income tax returns. Sirius XM, which does not consolidate with Liberty for income tax purposes, has certain state income tax audits pending.听We do not expect the ultimate disposition of these audits to have a material adverse effect on our financial position or results of operations.

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As of December听31, 2016, the Company had less than a million dollars in accrued interest and penalties recorded related to uncertain tax positions.