Comcast 2014 Annual Report Download - page 119

Table of Contents
Comcast Corporation
Components of Net Deferred Tax Liability
Changes in net deferred income tax liabilities in 2014 that were not recorded as deferred income tax expense are primarily related
to decreases of $127 million associated with items included in other comprehensive income (loss) and increases of $26 million
related to acquisitions made in 2014. 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. Following the NBCUniversal redemption
transaction, we recognized an increase in our deferred tax liabilities of $1.6 billion primarily due to an increase in our financial
reporting basis in the consolidated net assets of NBCUniversal Holdings in excess of the tax basis.
Net deferred tax assets included in other current assets are primarily related to our current investments and current liabilities. As of
December 31, 2014, we had federal net operating loss carryforwards of $127 million and various state net operating loss
carryforwards that expire in periods through 2034. As of December 31, 2014, we also had foreign net operating loss carryforwards
of $331 million that are related to the foreign operations of NBCUniversal, the majority of which expire in periods through 2024. The
determination of the realization of the state and foreign net operating loss carryforwards is dependent on our subsidiaries’
taxable
income or loss, apportionment percentages, and state and foreign laws that can change from year to year and impact the amount
of such carryforwards. We recognize a valuation allowance if we determine it is more likely than not that some portion, or all, of a
deferred tax asset will not be realized. As of December 31, 2014 and 2013, our valuation allowance was primarily related to state
and foreign net operating loss carryforwards.
Uncertain Tax Positions
Our uncertain tax positions as of December 31, 2014 totaled $1.2 billion, which excludes the federal benefits on state tax positions
that were recorded as deferred income taxes. Included in our uncertain tax positions was $243 million related to tax positions of
NBCUniversal and NBCUniversal Enterprise for which we have been indemnified by GE. If we were to recognize the tax benefit for
our uncertain tax positions in the future, $603 million would impact our effective tax rate and the remaining amount would increase
our deferred income tax liability. The amount and timing of the recognition of any such tax benefit is dependent on the completion of
examinations of our tax filings and the expiration of statutes of limitations. In September 2014, we reduced our accruals for
uncertain tax positions and the related accrued interest on these tax positions. The reduction resulted in a decrease of $724 million
in income tax expense, which excludes the benefits of uncertain tax positions for which we have been indemnified.
December 31 (in millions)
2014
2013
Deferred Tax Assets:
Net operating loss carryforwards
$
448
$
495
Differences between book and tax basis of long
-
term debt
116
117
Nondeductible accruals and other
3,383
3,588
Less: Valuation allowance
375
405
3,572
3,795
Deferred Tax Liabilities:
Differences between book and tax basis of property and equipment and intangible assets
35,112
34,044
Differences between book and tax basis of investments
186
473
Differences between book and tax basis of indexed debt securities
534
610
Differences between book and tax basis of foreign subsidiaries and undistributed foreign earnings
504
367
36,336
35,494
Net deferred tax liability
$
32,764
$
31,699
Comcast 2014 Annual Report on Form 10
-
K
114