Sprint - Nextel 2012 Annual Report Download - page 148

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Income tax expense consists of the following:
The differences that caused our effective income tax rates to vary from the 35% federal statutory rate for income taxes were as follows:
Income tax (expense) benefit allocated to other items was as follows:
_______________
F - 27
Note 11.
Income Taxes
Year Ended December 31,
2012
2011
2010
(in millions)
Current income tax benefit (expense)
Federal
$
34
$
(1
)
$
48
State
22
(20
)
15
Total current income tax benefit (expense)
56
(21
)
63
Deferred income tax (expense) benefit
Federal
(199
)
(136
)
(270
)
State
(10
)
(95
)
40
Total deferred income tax expense
(209
)
(231
)
(230
)
Foreign income tax (expense) benefit
(1
)
(2
)
1
Total income tax expense
$
(154
)
$
(254
)
$
(166
)
Year Ended December 31,
2012
2011
2010
(in millions)
Income tax benefit at the federal statutory rate
$
1,460
$
923
$
1,155
Effect of:
State income taxes, net of federal income tax effect
137
80
118
State law changes, net of federal income tax effect
(5
)
(38
)
—
Reduction (increase) in liability for unrecognized tax benefits
38
(1
)
18
Tax expense related to equity awards
(15
)
(13
)
(42
)
Change in valuation allowance
(1,756
)
(1,221
)
(1,418
)
Other, net
(13
)
16
3
Income tax expense
$
(154
)
$
(254
)
$
(166
)
Effective income tax rate
(3.7
)%
(9.6
)%
(5.0
)%
Year Ended December 31,
2012
2011
2010
(in millions)
Unrecognized net periodic pension and other postretirement benefit cost(1)
$
—
$
—
$
5
Unrealized holding gains/losses on securities(1)
—
( 1
)
1
(1)
These amounts have been recognized in accumulated other comprehensive loss.