Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of components of income tax expense |
We file a consolidated federal income tax return for all of our wholly-owned subsidiaries, including Sirius XM. Income tax expense consisted of the following:
|
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|
|
|
|
|
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|
For the Years Ended December 31, |
|
2017 |
|
2016 |
|
2015 |
Current taxes: |
|
|
|
|
|
Federal |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
(32,579 |
) |
|
(21,782 |
) |
|
(15,916 |
) |
Foreign |
(202 |
) |
|
(383 |
) |
|
(825 |
) |
Total current taxes |
(32,781 |
) |
|
(22,165 |
) |
|
(16,741 |
) |
Deferred taxes: |
|
|
|
|
|
Federal |
(564,171 |
) |
|
(304,179 |
) |
|
(318,933 |
) |
State |
(19,349 |
) |
|
(19,383 |
) |
|
(46,566 |
) |
Total deferred taxes |
(583,520 |
) |
|
(323,562 |
) |
|
(365,499 |
) |
Total income tax expense |
$ |
(616,301 |
) |
|
$ |
(345,727 |
) |
|
$ |
(382,240 |
) |
|
| Schedule of effective income tax rate reconciliation |
The following table presents a reconciliation of the U.S. federal statutory tax rate and our effective tax rate:
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|
|
|
|
For the Years Ended December 31, |
|
2017 |
|
2016 |
|
2015 |
Federal tax expense, at statutory rate |
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
State income tax expense, net of federal benefit |
2.8 |
% |
|
2.8 |
% |
|
2.9 |
% |
Change in valuation allowance |
(0.1 |
)% |
|
— |
% |
|
4.9 |
% |
Tax credit |
(1.7 |
)% |
|
(6.1 |
)% |
|
— |
% |
Stock-based compensation |
(2.9 |
)% |
|
(0.6 |
)% |
|
— |
% |
Federal tax reform - deferred rate change |
14.6 |
% |
|
— |
% |
|
— |
% |
Other, net |
1.0 |
% |
|
0.6 |
% |
|
0.1 |
% |
Effective tax rate |
48.7 |
% |
|
31.7 |
% |
|
42.9 |
% |
|
| Schedule of deferred tax assets and liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities, shown before jurisdictional netting, are presented below:
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For the Years Ended December 31, |
|
2017 |
|
2016 |
Deferred tax assets: |
|
|
|
Net operating loss carryforwards and tax credits |
$ |
686,277 |
|
|
$ |
1,376,012 |
|
Deferred revenue |
500,461 |
|
|
760,774 |
|
Accrued bonus |
24,150 |
|
|
35,225 |
|
Expensed costs capitalized for tax |
13,914 |
|
|
19,610 |
|
Investments |
29,881 |
|
|
44,129 |
|
Stock based compensation |
50,065 |
|
|
74,544 |
|
Other |
20,819 |
|
|
31,133 |
|
Total deferred tax assets |
1,325,567 |
|
|
2,341,427 |
|
Deferred tax liabilities: |
|
|
|
Depreciation of property and equipment |
(156,003 |
) |
|
(259,491 |
) |
FCC license |
(506,578 |
) |
|
(783,822 |
) |
Other intangible assets |
(105,471 |
) |
|
(172,520 |
) |
Other |
(7,273 |
) |
|
— |
|
Total deferred tax liabilities |
(775,325 |
) |
|
(1,215,833 |
) |
Net deferred tax assets before valuation allowance |
550,242 |
|
|
1,125,594 |
|
Valuation allowance |
(52,883 |
) |
|
(47,682 |
) |
Total net deferred tax asset |
$ |
497,359 |
|
|
$ |
1,077,912 |
|
|
| Summary of income tax contingencies |
Changes in our uncertain income tax positions, from January 1 through December 31 are presented below:
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
Balance, beginning of year |
$ |
303,583 |
|
|
$ |
253,277 |
|
Increases in tax positions for prior years |
14,530 |
|
|
— |
|
Increases in tax positions for current years |
16,141 |
|
|
51,738 |
|
Decreases in tax positions for prior years |
— |
|
|
(1,432 |
) |
Balance, end of year |
$ |
334,254 |
|
|
$ |
303,583 |
|
|