XM Radio 2015 Annual Report Download - page 124

and other current assets and $43,442 was recorded to Other long-term assets within our
consolidated balance sheets.
Several putative class actions suits challenging our use and public performance of other pre-
1972 recordings under various state laws remain pending. We believe we have substantial defenses
to the claims asserted, we are defending these actions vigorously, and do not believe that the
resolution of these remaining cases will have a material adverse effect on our business, financial
condition or results of operations.
With respect to certain matters described above under the captions “Telephone Consumer
Protection Act Suits” and “Pre-1972 Sound Recording Matters”, we have determined that the
outcome of these matters is inherently unpredictable and subject to significant uncertainties, many
of which are beyond our control. No provision was made for losses to the extent such are not
probable and estimable. We believe we have substantial defenses to the claims asserted, and
intend to defend these actions vigorously.
Other Matters. In the ordinary course of business, we are a defendant in various other lawsuits
and arbitration proceedings, including derivative actions; actions filed by subscribers, both on behalf
of themselves and on a class action basis; former employees; parties to contracts or leases; and
owners of patents, trademarks, copyrights or other intellectual property. None of these matters, in
our opinion, is likely to have a material adverse effect on our business, financial condition or results
of operations.
(17) Income Taxes
There is no current U.S. federal income tax provision, as all federal taxable income was offset
by utilizing U.S. federal net operating loss carryforwards. The current state income tax provision is
primarily related to taxable income in certain States that have suspended or limited the ability to
use net operating loss carryforwards or where net operating losses have been fully utilized. The
current foreign income tax provision is primarily related to foreign withholding taxes on dividend
distributions between us and our Canadian affiliate. For the year ended December 31, 2013, the
current foreign income tax provision related to reimbursement of foreign withholding taxes. Income
tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities.
We file a consolidated federal income tax return for all of our wholly-owned subsidiaries,
including Sirius XM. Income tax expense consisted of the following:
2015 2014 2013
For the Years Ended December 31,
Current taxes:
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,916) (7,743) (5,359)
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (825) (2,341) 5,269
Total current taxes. . . . . . . . . . . . . . . . . . . . . . . . . . (16,741) (10,084) (90)
Deferred taxes:
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (318,933) (302,350) (211,044)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,566) (25,111) (48,743)
Total deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . (365,499) (327,461) (259,787)
Total income tax expense. . . . . . . . . . . . . . . $(382,240) $(337,545) $(259,877)
F-33
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)