Sprint - Nextel 2015 Annual Report Download - page 120

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 12. Income Taxes
Sprint Corporation is the parent corporation of an affiliated group of corporations which join in the filing of a U.S. federal consolidated income tax
return. Additionally, we file income tax returns in each state jurisdiction which imposes an income tax. In certain state jurisdictions, Sprint and its subsidiaries
intend to file combined state tax returns with certain other SoftBank affiliates beginning with the year ended March 31, 2016. State tax expense or benefit has been
determined utilizing the separate return approach as if Sprint and its subsidiaries file on a stand-alone basis. We also file income tax returns in a number of foreign
jurisdictions. However, our foreign income tax activity has been immaterial. Cash paid or received for income tax purposes was insignificant for all Successor and
Predecessor periods presented.
Income tax expense consists of the following:
Successor
Predecessor
Year Ended
March 31,
Year Ended
March 31,
Three Months Ended
March 31,
Year Ended
December 31,
191 Days Ended
July 10,
Three Months Ended
March 31,
2016
2015
2014
2013
(Unaudited)
2013
2013
2013
(Unaudited)
(in millions)
Current income tax (expense) benefit
Federal $ 13
$ 5
$ —
$ (2)
$ 1
$ 2
$ (8)
State (30)
(39)
(10)
—
(13)
(17)
(6)
Total current income tax (expense) benefit (17) (34)
(10) (2) (12)
(15) (14)
Deferred income tax (expense) benefit
Federal (206)
491
(48)
1
(46)
(1,402)
(19)
State 83
118
2
—
14
(184)
(5)
Total deferred income tax (expense) benefit (123) 609
(46) 1 (32)
(1,586) (24)
Foreign income tax expense (1)
(1)
—
—
(1)
—
—
Total income tax (expense) benefit $ (141) $ 574
$ (56)
$ (1) $ (45)
$ (1,601) $ (38)
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:
Successor
Predecessor
Year Ended
March 31,
Year Ended
March 31,
Three Months Ended
March 31,
Year Ended
December 31,
191 Days Ended
July 10,
Three Months Ended
March 31,
2016
2015
2014
2013
(Unaudited)
2013
2013
2013
(Unaudited)
(in millions)
Income tax (expense) benefit at the federal statutory
rate $ 649
$ 1,372
$ 33
$ 3
$ 635
$ (155)
$ 212
Effect of:
State income taxes, net of federal income tax
effect 38
124
(4)
—
47
(18)
16
State law changes, net of federal income tax
effect 20
4
5
—
10
—
—
(Increase) reduction in liability for unrecognized
tax benefits (4)
1
—
—
2
(7)
—
Tax benefit from organizational restructuring 90
—
—
—
—
—
—
Change in valuation allowance (939)
(911)
(82)
—
(708)
(1,410)
(265)
Other, net 5
(16)
(8)
(4)
(31)
(11)
(1)
Income tax (expense) benefit $ (141)
$ 574
$ (56)
$ (1)
$ (45)
$ (1,601)
$ (38)
Effective income tax rate (7.6)%
14.6%
(58.9)%
(12.5)%
(2.5)%
361.4%
(6.3)%
F-36