Sprint - Nextel 2013 Annual Report Download - page 152

Table of Contents
Index to Consolidated Financial Statements
SPRINT 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% U.S. federal statutory rate for income taxes were as follows:
Income tax (expense) benefit allocated to other items was as follows:
_______________
Deferred income taxes are recognized for the temporary differences between the carrying amounts of our assets and liabilities for financial statement
purposes and their tax bases. Deferred tax assets are also recorded for operating loss, capital loss and tax credit carryforwards. The sources of the differences
that give rise to the deferred
F - 34
Note 11.
Income Taxes
Successor
Predecessor
Year Ended
December 31,
87 Days Ended
December 31,
191 Days Ended July
10,
Years Ended December 31,
2013
2012
2013
2012
2011
(in millions)
Current income tax (expense) benefit
Federal
$
1
$
(3
)
$
2
$
34
$
(1
)
State
(13
)
—
(17
)
22
(20
)
Total current income tax (expense) benefit
(12
)
(3
)
(15
)
56
(21
)
Deferred income tax (expense) benefit
Federal
(46
)
(1
)
(1,402
)
(199
)
(136
)
State
14
—
(184
)
(10
)
(95
)
Total deferred income tax expense
(32
)
(1
)
(1,586
)
(209
)
(231
)
Foreign income tax expense
(1
)
—
—
(1
)
(2
)
Total income tax expense
$
(45
)
$
(4
)
$
(1,601
)
$
(154
)
$
(254
)
Successor
Predecessor
Year Ended
December 31,
87 Days Ended
December 31,
191 Days Ended July
10,
Years Ended
December 31,
2013
2012
2013
2012
2011
(in millions)
Income tax (expense) benefit at the federal statutory rate
$
635
$
8
$
(155
)
$
1,460
$
923
Effect of:
State income taxes, net of federal income tax effect
47
—
(18
)
137
80
State law changes, net of federal income tax effect
10
—
—
(5
)
(38
)
Reduction (increase) in liability for unrecognized tax benefits
2
—
(7
)
38
(1
)
Tax expense related to equity awards
—
—
—
(15
)
(13
)
Change in valuation allowance
(708
)
(4
)
(1,410
)
(1,756
)
(1,221
)
Other, net
(31
)
(8
)
(11
)
(13
)
16
Income tax expense
$
(45
)
$
(4
)
$
(1,601
)
$
(154
)
$
(254
)
Effective income tax rate
(2.5
)%
(17.4
)%
361.4
%
(3.7
)%
(9.6
)%
Successor
Predecessor
Year Ended
December 31,
191 Days Ended July
10,
Years Ended
December 31,
2013
2013
2012
2011
(in millions)
Unrecognized net periodic pension and other postretirement benefit cost(1)
$
(58
)
$
(18
)
$
—
$
—
Unrealized holding gains/losses on securities(1)
$
(3
)
$
—
$
—
$
(1
)
(1)
These amounts have been recognized in accumulated other comprehensive income (loss).