Charter 2010 Annual Report Download - page 116

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F- F-PB
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
investment in Charter Holdco, as well as through current federal and state income tax expense and increases in the deferred tax liabilities of
certain of our indirect corporate subsidiaries. e income tax benefits were realized through reductions in the deferred tax liabilities related
to Charter’s investment in Charter Holdco, as well as the deferred tax liabilities of certain of Charter’s indirect corporate subsidiaries. e tax
provision in future periods will vary based on current and future temporary differences, as well as future operating results.
Current and deferred income tax benefit (expense) is as follows:
Successor Predecessor
Year Ended
December 31,
2010
One Month
Ended
December 31,
2009
Eleven Months
Ended
November 30,
2009
Year Ended
December 31,
2008
Current expense:
Federal income taxes $ -- $ -- $ (1) $ (2)
State income taxes (8) (1) (6) (2)
Current income tax expense (8) (1) (7) (4)
Deferred benefit (expense):
Federal income taxes (263) (6) 343 95
State income taxes (24) (1) 15 12
Deferred income tax benefit (expense) (287) (7) 358 107
Total income benefit (expense) $ (295) $ (8) $ 351 $ 103
Income tax benefit for the eleven months ended November 30, 2009 (Predecessor) and year ended December 31, 2008 (Predecessor) included
$480 million and $325 million, respectively, of deferred tax benefit related to the impairment of franchises.
e Company’s effective tax rate differs from that derived by applying the applicable federal income tax rate of 35% for the year ended
December 31, 2010, one month ended December 31, 2009, eleven months ended November 30, 2009 and year ended December 31, 2008,
respectively, as follows:
Successor Predecessor
YearEnded
December 31,
2010
One Month
Ended
December 31,
2009
Eleven Months
Ended
November 30,
2009
Year Ended
December 31,
2008
Statutory federal income taxes $ (20) $ (4) $ (3,412) $ 894
Statutory state income taxes, net (8) (1) (298) 151
Nondeductible expenses (4) -- -- --
Non-includable reorganization income -- -- 420 --
Franchises -- -- -- 107
Change in valuation allowance (237) (3) 3,826 (1,049)
Return to provision (23) -- -- --
Other 8 -- (185) --
Income tax benefit (expense) $ (295) $ (8) $351 $ 103