Comcast 2015 Annual Report Download - page 112

Comcast Corporation
Changes in our net deferred tax liability in 2015 that were not recorded as deferred income tax expense are
primarily related to decreases of $28 million associated with items included in other comprehensive income
(loss) and decreases of $132 million related to acquisitions made in 2015. 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.
As of December 31, 2015, we had federal net operating loss carryforwards of $135 million and various state
net operating loss carryforwards that expire in periods through 2035. As of December 31, 2015, we also had
foreign net operating loss carryforwards of $700 million that are related to the foreign operations of NBCUni-
versal, the majority of which expire in periods through 2025. The determination of the realization of the state
and foreign net operating loss carryforwards is dependent on our subsidiaries’ taxable income or loss, appor-
tionment 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, 2015 and 2014, 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, 2015 totaled $1.1 billion, which exclude the federal benefits
on state tax positions that were recorded as deferred income taxes. Included in our uncertain tax positions
was $220 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,
$592 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 by the various tax authorities and the expiration of statutes of
limitations. In 2014, we reduced our accruals for uncertain tax positions and the related accrued interest on
these tax positions and, as a result, our income tax expense decreased by $759 million. It is reasonably
possible that certain tax contests could be resolved within the next 12 months that may result in a decrease
in our effective tax rate.
Reconciliation of Unrecognized Tax Benefits
(in millions) 2015 2014 2013
Balance, January 1 $ 1,171 $ 1,701 $ 1,573
Additions based on tax positions related to the current year 67 63 90
Additions based on tax positions related to prior years 98 111 201
Additions from acquired subsidiaries —— 268
Reductions for tax positions of prior years (84) (220) (141)
Reductions due to expiration of statutes of limitations (41) (448) (3)
Settlements with tax authorities (75) (36) (287)
Balance, December 31 $ 1,136 $ 1,171 $ 1,701
As of December 31, 2015 and 2014, our accrued interest associated with tax positions was $510 million and
$452 million, respectively. As of December 31, 2015 and 2014, $49 million and $44 million, respectively, of
these amounts were related to tax positions of NBCUniversal and NBCUniversal Enterprise for which we have
been indemnified by GE.
During 2015, the IRS completed its examination of our income tax returns for the year 2013. Various states
are examining our tax returns, with most of the periods relating to tax years 2000 and forward. The tax years
of our state tax returns currently under examination vary by state.
109 Comcast 2015 Annual Report on Form 10-K