Comcast 2012 Annual Report Download - page 110

Table of Contents
Note 15: Income Taxes
Components of Income Tax Expense
Our income tax expense differs from the federal statutory amount because of the effect of the items detailed in the table below.
We base our provision for income taxes on our current period income, changes in our deferred income tax assets and liabilities,
income tax rates, changes in estimates of our uncertain tax positions, and tax planning opportunities available in the jurisdictions in
which we operate. We recognize deferred tax assets and liabilities when there are temporary differences between the financial
reporting basis and tax basis of our assets and liabilities and for the expected benefits of using net operating loss carryforwards.
When a change in the tax rate or tax law has an impact on deferred taxes, we apply the change based on the years in which the
temporary differences are expected to reverse. We record the change in our consolidated financial statements in the period of
enactment.
Income tax consequences that arise in connection with a business combination include identifying the tax basis of assets and
liabilities acquired and any contingencies associated with uncertain tax positions assumed or resulting from the business
combination. Deferred tax assets and liabilities related to temporary differences of an acquired entity are recorded as of the date of
the business combination and are based on our estimate of the ultimate tax basis that will be accepted by the various taxing
authorities. We record liabilities for contingencies associated with prior tax returns filed by the acquired entity based on criteria set
forth in the appropriate accounting guidance. We adjust the deferred tax accounts and the liabilities periodically to reflect any revised
estimated tax basis and any estimated settlements with the various taxing authorities. The effects of these adjustments are recorded
to income tax expense.
Year ended December 31 (in millions)
2012
2011
2010
Current expense (benefit):
Federal
$
3,004
$
1,480
$
1,502
State
432
359
385
Foreign
169
153
—
3,605
1,992
1,887
Deferred expense (benefit):
Federal
160
658
463
State
(40
)
371
86
Foreign
19
29
—
139
1,058
549
Income tax expense
$
3,744
$
3,050
$
2,436
Year ended December 31 (in millions)
2012
2011
2010
Federal tax at statutory rate
$
4,063
$
2,872
$
2,136
State income taxes, net of federal benefit
178
354
204
Foreign income taxes, net of federal credit
92
89
—
Nontaxable income attributable to noncontrolling interests
(620
)
(410
)
2
Adjustments to uncertain and effectively settled tax positions, net
114
77
37
Accrued interest on uncertain and effectively settled tax positions, net
23
66
60
Other
(106
)
2
(3
)
Income tax expense
$
3,744
$
3,050
$
2,436
107
Comcast 2012 Annual Report on Form 10
-
K