Comcast 2013 Annual Report Download - page 115

Table of Contents
Comcast Corporation
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.
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 dispositions,
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. Following the close of the Redemption Transaction in March 2013,
the taxable income of NBCUniversal Holdings and NBCUniversal is allocable entirely to us.
We are indemnified by GE for any income tax liability attributable to the NBCUniversal contributed businesses for periods prior to
the date of the 2011 NBCUniversal Transaction and also for any income tax liability attributable to NBCUniversal Enterprise for
periods prior to the date of the Redemption Transaction. We have indemnified GE for any income tax liability attributable to the
Comcast Content Business for periods prior to the date of the 2011 NBCUniversal Transaction.
Current and deferred foreign income taxes are incurred by NBCUniversal’
s foreign subsidiaries. In 2013, 2012, and 2011,
NBCUniversal had foreign income before taxes of $524 million, $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, which was reduced by a U.S. tax credit equal to our allocable share of NBCUniversal’
s foreign income
tax expense.
Comcast 2013 Annual Report on Form 10
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