Comcast 2015 Annual Report Download - page 111

Comcast Corporation
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 trans-
actions 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
tax 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 examina-
tion, 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 inter-
est 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 Hold-
ings 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 in January 2011 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 2015, 2014
and 2013, NBCUniversal had foreign income before taxes of $704 million, $385 million and $524 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.
Components of Net Deferred Tax Liability
December 31 (in millions) 2015 2014
Deferred Tax Assets:
Net operating loss carryforwards $ 551 $ 448
Differences between book and tax basis of long-term debt 115 116
Differences between book and tax basis of investments 101 —
Nondeductible accruals and other 3,589 3,383
Less: Valuation allowance 342 375
4,014 3,572
Deferred Tax Liabilities:
Differences between book and tax basis of property and equipment and intangible assets 36,392 35,112
Differences between book and tax basis of investments —186
Differences between book and tax basis of indexed debt securities 457 534
Differences between book and tax basis of foreign subsidiaries and undistributed foreign
earnings 731 504
37,580 36,336
Net deferred tax liability $ 33,566 $ 32,764
Comcast 2015 Annual Report on Form 10-K 108