Sprint - Nextel 2014 Annual Report Download - page 119

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-36
Income tax (expense) benefit allocated to other items was as follows:
Successor Predecessor
Year Ended
March 31,
Three Months
Ended
March 31, Year Ended
December 31,
191 Days
Ended
July 10,
Three Months
Ended
March 31, Year Ended
December 31,
2015 2014 2013 2013 2013
(Unaudited) 2012
(in millions)
Unrecognized net periodic pension and other
postretirement benefit cost(1) $ — $ — $ (58) $ (18) $ (10) $ —
Unrealized holding gains/losses on securities(1) $ — $ (1) $ (3) $ — $ (1) $ —
_______________
(1) These amounts have been recognized in accumulated other comprehensive loss.
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 income tax assets and
liabilities as of March 31, 2015 and 2014, along with the income tax effect of each, were as follows:
Successor
March 31, 2015 March 31, 2014
Current Long-Term Current Long-Term
(in millions)
Deferred tax assets
Net operating loss carryforwards $ — $ 8,155 $ — $ 7,264
Tax credit carryforwards — 381 — 374
Capital loss carryforwards — 84 — 82
Property, plant and equipment — 261 — 500
Debt obligations — 419 — 598
Deferred rent — 470 — 474
Pension and other postretirement benefits — 385 — 252
Accruals and other liabilities 637 561 738 601
637 10,716 738 10,145
Valuation allowance (509) (8,371) (522) (7,175)
128 2,345 216 2,970
Deferred tax liabilities
FCC licenses — 12,558 — 12,158
Trademarks — 1,725 — 2,461
Intangibles — 1,658 — 2,248
Other 66 302 88 310
66 16,243 88 17,177
Current deferred tax asset $ 62 $ 128
Long-term deferred tax liability $ 13,898 $ 14,207
The realization of deferred tax assets, including net operating loss carryforwards, is dependent on the generation
of future taxable income sufficient to realize the tax deductions, carryforwards and credits. However, our history of annual
losses reduces our ability to rely on expectations of future income in evaluating the ability to realize our deferred tax assets.
Valuation allowances on deferred tax assets are recognized if it is determined that it is more likely than not that the asset will
not be realized. As a result, the Company recognized income tax expense to increase the valuation allowance of $911 million,
$82 million and $708 million for the Successor year ended March 31, 2015, three-month transition period ended March 31,
2014 and year ended December 31, 2013, respectively, and $1.4 billion, $265 million, and $1.8 billion for the Predecessor
191-day period ended July 10, 2013, unaudited three-month period ended March 31, 2013, and year ended December 31,
2012, respectively, on deferred tax assets primarily related to losses incurred during the period that are not currently