Sprint - Nextel 2015 Annual Report Download - page 121

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Income tax (expense) benefit allocated to other items was 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
2013
2013
(Unaudited)
(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, 2016 and 2015 , along with the income tax effect of each, were as follows:
March 31, 2016
March 31, 2015
Long-Term (1)
Current
Long-Term
(in millions)
Deferred tax assets
Net operating loss carryforwards $ 8,057
$ —
$ 8,155
Tax credit carryforwards 384
—
381
Capital loss carryforwards 83
—
84
Property, plant and equipment 1,230
—
261
Debt obligations —
—
419
Deferred rent 438
—
470
Pension and other postretirement benefits 378
—
385
Accruals and other liabilities 1,376
637
561
11,946
637
10,716
Valuation allowance (9,793)
(509)
(8,371)
2,153
128
2,345
Deferred tax liabilities
FCC licenses 12,738
—
12,558
Trademarks 1,718
—
1,725
Intangibles 1,166
—
1,658
Debt obligations 58
—
—
Other 432
66
302
16,112
66
16,243
Current deferred tax asset
$ 62
Long-term deferred tax liability $ 13,959
$ 13,898
_______________
(1) SeeNote2.SummaryofSignificantAccountingPoliciesandOtherInformationforearlyadoptionofguidanceregardingBalanceSheetClassificationofDeferredTaxes.
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 $939 million , $911 million , $82
million and $708 million for the Successor years ended March 31, 2016 and 2015 , three-month transition period ended March 31, 2014 and year ended
December 31, 2013, respectively, and $1.4 billion and $265 million for the
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