Comcast 2012 Annual Report Download - page 111

Table of Contents
From time to time, we engage in transactions in which the tax consequences may be subject to uncertainty. In these cases, we
evaluate our tax positions using the recognition threshold and the measurement attribute in accordance with the accounting
guidance related to uncertain tax positions. Examples of these transactions include business acquisitions and disposals, including
consideration paid or received in connection with these transactions, and certain financing transactions. Significant judgment is
required in assessing and estimating the tax consequences of these transactions. We determine whether it is more likely than not
that a tax position will be sustained on examination, including the resolution of any related appeals or litigation processes, based on
the technical merits of the position. A tax position that meets the more-likely-than-
not recognition threshold is measured to determine
the amount of benefit to be recognized in our financial statements. We classify interest and penalties, if any, associated with our
uncertain tax positions as a component of income tax expense.
NBCUniversal
For U.S. federal income tax purposes, NBCUniversal Holdings is treated as a partnership and NBCUniversal is disregarded as an
entity separate from NBCUniversal Holdings. Accordingly, neither NBCUniversal Holdings nor NBCUniversal and its subsidiaries
incur any material current or deferred domestic income taxes. Current and deferred foreign income taxes are incurred by
NBCUniversal’s foreign subsidiaries.
In 2012 and 2011, NBCUniversal had foreign income before taxes of $434 million and $476 million, respectively, on which foreign
income tax expense was recorded. We recorded U.S. income tax expense on our allocable share of NBCUniversal’
s income before
domestic and foreign taxes reduced by a U.S. tax credit equal to our allocable share of NBCUniversal’s foreign income tax expense.
Components of Net Deferred Tax Liability
Changes in net deferred income tax liabilities in 2012 that were not recorded as deferred income tax expense are primarily related to
increases of $99 million associated with items included in other comprehensive income (loss) and $66 million of increases related to
acquisitions made in 2012. We accrued deferred tax expense of $77 million for our allocable share of NBCUniversal’
s undistributed
foreign income. Our net deferred tax liability includes $23 billion related to cable franchise rights that will remain unchanged unless
we recognize an impairment or dispose of a cable franchise.
Net deferred tax assets included in current assets are primarily related to our current investments and current liabilities. As of
December 31, 2012, we had federal net operating loss carryforwards of $158 million and vari-
December 31 (in millions)
2012
2011
Deferred Tax Assets:
Net operating loss carryforwards
$
491
$
468
Differences between book and tax basis of long
-
term debt
109
114
Nondeductible accruals and other
1,771
1,583
Less: Valuation allowance
355
297
2,016
1,868
Deferred Tax Liabilities:
Differences between book and tax basis of property and equipment and intangible assets
29,185
29,185
Differences between book and tax basis of investments
848
616
Differences between book and tax basis of indexed debt securities
587
560
Differences between book and tax outside basis of NBCUniversal
1,413
1,214
32,033
31,575
Net deferred tax liability
$
30,017
$
29,707
Comcast 2012 Annual Report on Form 10
-
K
108