Comcast 2014 Annual Report Download - page 118

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Comcast Corporation
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, certain financing transactions, and the allocation of
income among state and local taxing jurisdictions. 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 consolidated 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 NBCUniversal 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 close of the NBCUniversal transaction and also for any income tax liability attributable to NBCUniversal Enterprise for periods
prior to the date of the NBCUniversal redemption transaction. We have indemnified GE for any income tax liability attributable to the
businesses we contributed to NBCUniversal for periods prior to the close of the NBCUniversal transaction.
Current and deferred foreign income taxes are incurred by NBCUniversal’
s foreign subsidiaries. In 2014, 2013 and 2012,
NBCUniversal had foreign income before taxes of $385 million, $524 million and $434 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.
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Comcast 2014 Annual Report on Form 10-
K