Comcast 2015 Annual Report Download - page 110

Comcast Corporation
Note 15: Income Taxes
Components of Income Tax Expense
Year ended December 31 (in millions) 2015 2014 2013
Current Expense (Benefit):
Federal $ 3,210 $ 2,392 $ 3,183
State 570 174 581
Foreign 221 142 200
4,001 2,708 3,964
Deferred Expense (Benefit):
Federal 890 1,000 (76)
State 66 173 108
Foreign 2(8) (16)
958 1,165 16
Income tax expense $ 4,959 $ 3,873 $ 3,980
Our income tax expense differs from the federal statutory amount because of the effect of the items detailed
in the table below.
Year ended December 31 (in millions) 2015 2014 2013
Federal tax at statutory rate $ 4,680 $ 4,363 $ 3,890
State income taxes, net of federal benefit 326 329 319
Foreign income taxes, net of federal credit 13 —15
Nontaxable income attributable to noncontrolling interests (69) (62) (103)
Adjustments to uncertain and effectively settled tax positions, net 15 (408) 58
Accrued interest on uncertain and effectively settled tax positions, net 73 (235) 114
Other (79) (114) (313)
Income tax expense $ 4,959 $ 3,873 $ 3,980
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 state-
ments in the period of enactment.
The determination of the income tax consequences of a business combination includes 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 tax 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 tax authorities. The effects of
these adjustments are recorded to income tax expense.
107 Comcast 2015 Annual Report on Form 10-K