Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
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 and Pandora. Income tax expense consisted of the following:
  For the Years Ended December 31,
  2020 2019 2018
Current taxes:      
Federal $ —  $ —  $ — 
State (61) (24) 12 
Total current taxes (61) (24) 12 
Deferred taxes:      
Federal (219) (229) (259)
State (19) (30) 2 
Total deferred taxes (238) (259) (257)
Total income tax expense $ (299) $ (283) $ (245)
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:
  For the Years Ended December 31,
  2020 2019 2018
Federal tax expense, at statutory rate 21.0  % 21.0  % 21.0  %
State income tax expense, net of federal benefit 4.2  % 3.9  % 3.6  %
Change in valuation allowance 0.7  % 0.3  % 1.0  %
Tax credits (10.2) % (2.7) % (6.8) %
Share-based compensation (3.5) % (2.4) % (3.1) %
Impact of nondeductible compensation 2.6  % 1.6  % 0.7  %
Automatic worthless stock deduction (3.5) % —  % —  %
Goodwill impairment 53.7  % —  % —  %
Uncertain tax positions 4.4  % —  % —  %
Other, net 0.1  % 1.9  % 0.8  %
Effective tax rate 69.5  % 23.6  % 17.2  %
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:
  For the Years Ended December 31,
  2020 2019
Deferred tax assets:    
Net operating loss carryforwards and tax credits $ 745  $ 1,010 
Deferred revenue 62  81 
Accrued bonus 29  34 
Expensed costs capitalized for tax 11  14 
Investments 21  22 
Stock based compensation 74  72 
Operating lease liability 118  126 
Total deferred tax assets 1,060  1,359 
Deferred tax liabilities:    
Depreciation of property and equipment (237) (228)
FCC license (521) (519)
Other intangible assets (292) (340)
Right of use asset (106) (116)
Other (5) (3)
Total deferred tax liabilities (1,161) (1,206)
Net deferred tax assets before valuation allowance (101) 153 
Valuation allowance (54) (70)
Total net deferred tax (liability) asset $ (155) $ 83 
Schedule of Uncertain Income Tax Positions
Changes in our unrecognized tax benefits and uncertain tax positions from January 1 through December 31 are set forth below:
  2020 2019
Balance, beginning of year $ 406  $ 387 
Increases in tax positions for prior years 14  — 
Increases in tax positions for current year 20  31 
Decreases in tax positions for prior years (7) (12)
Balance, end of year $ 433  $ 406